Gas-fired generating plant offered to utility, filing shows

Nevada Power Co. has been offered an existing 520-megawatt, gas-fired power plant for $545 million, $235 million less than it planned to spend building a new generation plant, a document filed Friday with state regulators shows.

In a letter dated July 31, an affiliate of LS Power of New Jersey offered to sell Nevada Power the Apex Combined Cycle Unit, which was completed five years ago by Mirant Corp. The power plant is near the site of the proposed 500-megawatt Harry Allen Combined Cycle power plant 35 miles north of Las Vegas.

LS Power offered to sell the existing generating station for $545 million, well below the $780 million cost of building the new Harry Allen plant.

The staff of the Public Utilities Commission revealed the LS Power offer on Friday in a motion requesting commission approval to change its written testimony over an amendment to Nevada Power's integrated resource plan.

The staff wants to review the LS Power offer, which appears to be "a superior option" to building a new power plant, according to a motion filed by staff attorney Donald Lomoljo.

The PUC staff suggested Nevada Power seek a 30-day extension on the LS Power offer and look into buying the plant.

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