Legislators says state agency could broker renewable energy deals

CARSON CITY, Nev. - Legislators trying to head off a utility deregulation debacle in Nevada discussed a plan to have the state kickstart construction of environmentally friendly power plants.

The plan discussed Monday in the Senate Commerce and Labor Committee calls for Nevada's Commission on Economic Development to consider backing renewable-fuel power plant ventures.

Sen. Randolph Townsend, R-Reno, the committee chairman, said the energy could be used for state agencies and state-run facilities, such as universities and prisons.

Currently, just 1 percent of Nevada's power must come from renewable sources. A separate legislative proposal would raise that to 9 percent.

Renewable-fuel power plants are usually built by smaller companies - but those firms say they need long-term contracts to finance construction, unlike large corporations that can afford to build big natural-gas power plants.

Under deregulation, long-term contracts would be difficult to obtain. By designating a state agency as an intermediary, Townsend, said Nevada could guarantee the long-term contracts for smaller companies which could then move forward with projects.

"The legislators are thinking out of the box," said Bob Shriver, the economic development commission's executive director, adding that the proposal is a good idea that needs research.

Shriver and Townsend are meeting later this week to discuss the particulars.

Renewable fuels, primarily geothermal and wind, are abundant in Nevada, Shriver said. Renewable-fuel power plants don't pollute as much as natural gas, and they don't depend on outside suppliers of fuel that can vary widely in price.

Renewable fuels also would relieve the need to build extensive networks of power lines to bring in electrical power from suppliers.

Currently, power lines cost up to $1.5 million per mile to build - assuming local communities don't object to them.

Shriver said geothermal power plants could be located primarily in rural areas, and residents in those areas would get a double benefit: power and more jobs.

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