Thursday, Sept. 11, 2008 | midnight
The city will supply 300 acre-feet of water annually to El Dorado Energy's future solar plant and gas-fired peaking stations in the Energy Zone.
The City Council Sept. 9 voted unanimously to approve the 20-year water service contract with the power company, which broke ground on the new plant this summer and expects to be finished by December and operational next October. The council passed the contract with little discussion.
One acre-foot of water is about 326,000 gallons, or enough water for a family of five for one year. The city is allocated 18,742 acre-feet per year, City Manager Vicki Mayes said.
The city in July approved the lease for 80 acres to house the 10-megawatt plant with El Dorado Energy, a subsidiary of Sempra Generation. One megawatt of power will serve about 500 homes in the summer.
Sempra Chief Executive Officer Michael Allman said the company hopes to expand the plant to 60 megawatts by 2010.
The new plant will neighbor the company's existing gas-powered El Dorado Energy Plant, built eight years ago.
El Dorado Energy had previously planned to build another gas-fired plant, but switched plans to build the sun-powered plant in the city's designated area for promoting solar energy.
The thin film photovoltaic solar panels won't require water for operation. However, the company plans to build up to four 100-megawatt, gas-powered peaking stations to provide electricity to the grid during heavy energy use, and they would use the water.
El Dorado Energy will pay the standard commercial rate for the potable water.
The contract provides that in an emergency or drought situation declared by the Southern Nevada Water Authority, the city can curtail or regulate the plant's water allocation, as it would for other commercial users.
The contract states that in the event El Dorado Energy, or any successive company, stops running the plant, the contract is null.
Also, El Dorado Energy will pay for any necessary pipeline extensions to bring the water to the plant.
The city isn't obligated to provide the water in the event of "breakage, accident or injury" to water works systems or Southern Nevada Water System facilities, the contract states.
Also, the city will not be in breach of its contract if it can't provide the water due to "a lack of fuel or power to operate its pumping works" because of "any accident, act of God, the act of the elements, strikes, riots or the public enemy," the contract says.
Cassie Tomlin can be reached at 948-2073 or [email protected].
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