Nevada PUC rejects NV Energy plan for Moapa solar plant
CARSON CITY — A $438 million solar facility planned for the Moapa River Paiute Indian Reservation was killed Monday by state regulators who removed it from Nevada Power’s plan to retire its coal-fired electricity generation within the next five years.
The Moapa solar project was to generate 200 megawatts, with a firm capacity estimated at 76 megawatts. It was a major feature of the plan to completely end the utility’s reliance on coal-fired electrical generation by 2019. It was proposed by Nevada Power in May as a result of Senate Bill 123 passed by the 2013 Nevada Legislature, which directed the utility to move away from coal-fired electrical generation to alternative forms of energy.
The utility, part of NV Energy, plans to close coal-fired plants at its Reid Gardner facility at Moapa by Dec. 31, 2017, and end its interest in the coal-fired Navajo Generating Station near Page, Ariz., by Dec. 31, 2019.
But the state Public Utilities Commission decided not to include the Moapa solar project in the utility’s plan, which would have been constructed by the utility without having to go through a “request for proposal.” The commission found that it was not in the public interest.
Instead, the commission asked Nevada Power to seek alternatives to replacing 54 megawatts of unfulfilled capacity by issuing a competitive “request for proposals.”
The vote saw Commission Chairwoman Alaina Burtenshaw and Commissioner David Noble in support, and Commissioner Rebecca Wagner in support with the exception of the Moapa piece of the order.
Following the vote, Nevada Power issued a statement: “Today’s order changes our filing considerably. Once the final order is issued, we will use the review period to understand how these changes will impact our plan to reduce emissions and develop resources for the benefit of our customers.”
Dan Jacobsen, technical staff manager for the Bureau of Consumer Protection, which sought to have the Moapa project removed from the plan because of its cost, said requiring the utility to use an RFP process will make the process more transparent.
Anyone will be able to submit a proposal to supply the capacity, he said.
The Moapa proposal would have been costly for ratepayers, Jacobsen said.
The hearing room in Southern Nevada was standing-room-only with mostly supporters of the Moapa piece of the replacement plan.
Several speakers endorsed the Moapa project, including Kyle Davis, political director of the Nevada Conservation League, who said the construction of the solar plant would create jobs and help the economy.
Tribal and union officials also spoke in favor of the Moapa project.
Danny Thompson, representing the Nevada State AFL-CIO, said carving out the Moapa project would not create any jobs for Nevada workers, which was an important component of Senate Bill 123.
Commissioner Wagner, in her 95-page draft order, argued in favor of keeping the Moapa project in the plan. She said Nevada Power made a compelling argument for diversity in its plan, which also includes the purchase of two natural gas plants to replace the coal capacity.
“Diversity within Nevada Power’s generation portfolio provides added value,” she said.
Wagner also noted that if the utility did not support the changes made by the commission, it could entirely withdraw its filing, which could delay the closure of the Reid Gardner coal-fired plants.
“It is not an option to jeopardize the closure of those coal plants,” she said.
Commissioner Noble, in his draft order, proposed eliminating the project from the utility’s plan, arguing that it is not currently needed and that its costs were unnecessarily high for all Nevada Power customers.
“Paying for generating capacity that is not needed places unnecessary costs on ratepayers,” he said.
He also argued that the capacity expected from the solar plant could be generated using combustion turbine technology for a cost of $85 million.
Other elements of the plan, including the purchase of two two gas-generated plants in North Las Vegas that can produce up to 496 megawatts of electricity, were approved by the commission.
Another element is a 15-megawatt solar project at Nellis Air Force Base that will be acquired by the company.
Contact Sean Whaley at swhaley@reviewjournal.com or 775-687-3900. Find him on Twitter: @seanw801.
