NV Energy and Great Basin Transmission to Pursue
Jointly-Owned Transmission Line
January 11,
2010 - LAS VEGAS – NV Energy (NYSE:NVE) and Great Basin
Transmission, LLC, an affiliate of LS Power, have signed
a Memorandum of Understanding to jointly own a 500
kilovolt transmission line in Nevada. NV Energy
would purchase Great Basin’s share of capacity on the
jointly owned line under a long term agreement.
The transmission line would provide access to isolated
renewable energy resources in parts of northern and
eastern Nevada. Additionally, it would connect NV
Energy’s northern service area with its service area in
southern Nevada, which will enhance overall
energy-sharing efficiencies and renewable energy
utilization.
Both companies have been developing separate lines in the
same Southwest Intertie Project (SWIP) corridor that
spans 235 miles from north of Las Vegas to near Ely,
Nevada. Great Basin has obtained the major
federal, state, and local approvals required to
construct the line, and both companies are seeking a
financing agreement with Western Area Power
Administration pursuant to federal borrowing authority
granted under the American Reinvestment and Recovery Act
of 2009.
Michael Yackira, President and Chief
Executive Officer for NV Energy, commented on the
announcement, “Transmission infrastructure is essential
for bringing renewable resources to market, and with as much yet-to-be-developed
geothermal and wind energy that we have in the northern
part of the state, a single transmission line connecting
the north to the south brings enormous opportunity for
future renewable development”
“This project is a great example of how the local utility, an
independent energy project developer and the Federal
Government can work together to deliver a project that
is superior to the alternatives. It will enable
transmission access for renewable energy projects that
were otherwise isolated from the market and provide
reliability, efficiency and other benefits to the
transmission system,” said Mike Segal, Chairman and
Chief Executive Officer for LS Power.
The joint ownership of the project is contingent upon the
execution of final agreements and would require the
approval of the Public Utilities Commission of Nevada
and the Federal Energy Regulatory Commission. NV
Energy will include the joint ownership proposal as its
preferred alternative in its upcoming Integrated
Resource Plan filing with the commission, which will be
filed by February 1, 2010.
Great Basin is currently developing expansions of the SWIP to the
north and to the south to provide access to additional
renewable energy resources and markets and additional
reliability benefits for Nevadans. Under the
arrangement, NV Energy will have rights to capacity on
these expansions at no additional cost to Nevada
ratepayers. Additional capacity will remain
available for sale to third parties.
Construction of the jointly owned line is planned to begin this year
resulting in approximately 400 jobs and millions of
dollars in sales and use tax and property tax payments
for Nevada counties and schools. The line will
also enable hundreds of additional jobs as it will
provide market access to spur the development of new
renewable energy generation projects.
About Great Basin Transmission, LLC
Great Basin is a single-purpose company formed to develop, finance,
construct, own, and operate the Southwest Intertie
Project. Great Basin is wholly owned by LS Power,
a power generation and transmission group. For more
information, visit
www.LSPower.com
About NV Energy, Inc.
Headquartered in Las Vegas, Nevada, NV
Energy, Inc. is a holding company with principal
subsidiaries, Nevada Power Company and Sierra Pacific
Power Company, doing business as NV Energy.
Serving a combined 54,500-square-mile service territory,
NV Energy provides a wide range of energy services and
products to approximately 2.4 million citizens of Nevada
and nearly 40 million tourists annually. For more
information, visit
www.NVEnergy.com
Forward-Looking Statements Disclosure
This press release may contain forward-looking
statements regarding the future performance of Sierra
Pacific Power Company d/b/a NV Energy within the meaning
of the Private Securities Litigation Reform Act of
1995.These statements are subject to a variety of risks
and uncertainties that could cause actual results to
differ materially from current expectations. These risks
and uncertainties include, but are not limited to, the
negotiation of a definitive agreement between the
parties and obtaining necessary regulatory approvals.
Additional cautionary statements regarding other risk
factors that could have an effect on the future
performance of Sierra Pacific Power Company are
contained in NV Energy Inc.'s and Sierra Pacific Power
Company's Annual Reports on Form 10-K for the year ended
December 31, 2008 and Quarterly Reports on Form 10-Q for
the quarters ended March 31, 2009, June 30, 2009 and
September 30, 2009, as filed with the Securities and
Exchange Commission. NV Energy, Inc. and Sierra Pacific
Power Company undertake no obligation to release
publicly the result of any revisions to these
forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
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