Wednesday, July 30, 2008 | 5:29 p.m.
CARSON CITY -- In its long-range plans to meet growth, Nevada Power Co., is going to develop two unusual energy projects that are being called a first in the state.
And these two projects should work to the advantage of ratepayers of the company, according to the state Public Utilities Commission that approved the future ventures.
The utility plans to capture waste heat generated from a natural gas compressor station owned by Kern River in Goodsprings near Jean in Southern Nevada. It will convert it to six megawatts. One megawatt will serve 200 homes during the summer peak in Clark County and 600 homes in the winter period.
The staff of the PUC says “the fact that the project requires no power purchase agreement is also a substantial benefit for NPC ratepayers.”
The second project calls for Nevada Power to join with a company called Ormat to expand a proposed geothermal plant from 24 to 40 megawatts in the Carson Lakes area near Fallon.
The Las Vegas utility would be a half owner and get half of the energy generated. But rather than transport it to Clark County, it would sell the power to its sister Sierra Pacific Power Co., of Reno.
Commission Chairman Jo Ann Kelly said both projects “are a first” in Nevada. Commissioner Rebecca Wagner said Nevada Power was “moving in the right direction.”
“I applaud the company going out on a limb with the project with Ormat,” Wagner said during the PUC meeting Wednesday.
Both projects will count toward the requirement that Nevada Power Company must sell a certain amount of its energy from renewal resources. For 2007, the company had to have 9 percent of retail sales in renewal energy.
They both fell short in meeting the solar energy goal in 2007 but achieved the non-solar target. The PUC will start hearings Aug. 5 to determine if the companies should be penalized.
The companies say they will meet the requirements on solar energy this year.
The Carson Lake project is expected to be operational in December 2010. Ormat is regarded as the leading developer of geothermal resources in Nevada and possibly in the world.
The Goodsprings projects should also be completed in 2010, according to the PUC. The cost of each project has not been revealed.
The PUC also approved the application of Nevada Power to upgrade its transmission lines to supply sufficient power on the Las Vegas Strip, where there is significant expansion. The utility plans to spend $7.1 million for transmission upgrades
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