Utility OK’d to build one plant, buy another

State regulators on Wednesday approved changes in NV Energy's integrated resource plan, allowing the company to buy one power plant and build another one.

The Public Utilities Commission voted 3-0 to allow NV Energy, which formerly was known as Nevada Power Co. and Sierra Pacific Power Co., to build a $682 million, 484-megawatt gas-fired plant at the Harry Allen Generating Station north of Las Vegas.

The commission staff earlier suggested the utility buy an existing nearby gas-fired plant from LS Power for $545 million, but the commission directed NV Energy to build the more expensive, new power plant instead.

Commissioner Rebecca Wagner dissented, partly because she didn't believe NV Energy provided enough information to justify factoring the cost of the Harry Allen plant into its rates before the power plant is completed.

In addition, the commission approved NV Energy's proposal to purchase the 562-megawatt, gas-fired Bighorn Power Plant at Primm for $510 million.

"These facilities will provide much-needed efficient energy production capability for Southern Nevada," Michael Yackira, chief executive of utility holding company Sierra Pacific Resources, said in a statement.

The commission authorized NV Energy to spend up to $130 million on development of the delayed $5 billion Ely Energy Center, a 1,500-megawatt, coal-fired project in eastern Nevada.

However, the commission ordered NV Energy to provide extensive reports next year on the Ely center. The commission rejected the utility's request to delay the review until the following year.

In addition, the commission ordered NV Energy to report back on the feasibility of building a smaller, 500- to 700-megawatt coal-fired plant in Northern Nevada at Valmy Station.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.