NV Energy’s Southern Nevada division, Nevada Power, is asking the Public Utilities Commission to reconsider its rejection of a proposed $438 million, 200-megawatt solar panel project on the Moapa River Paiute Indian Reservation.
Approving the Moapa project “reduces the impact of retiring and replacing coal-fired generation on customers, provides value to customers through incremental fuel diversity, generates construction jobs in 2015, and yields a net positive impact on Nevada’s economy,” the Review-Journal account quotes the utility as arguing.
NV Energy says it needs more generating capacity to replace that lost due to the legislatively mandated shut down of its Reid Gardner coal-fired plant. According to NV Energy, that plant has a 557 megawatt capacity.
Though the PUC nixed the Moapa solar project, it did approve the utility buying two existing gas-generated plants in North Las Vegas that can produce up to 496 megawatts of electricity and the purchase of a 15-megawatt solar project at Nellis Air Force Base. That covers most of the lost capacity right there, leaving the company only 46 megawatts short, not 200 megawatts.
The PUC determined approval of the Moapa solar plant would have cost ratepayers $50 million in 2017 alone, which “may have a significant effect on the creation of jobs in Nevada.” So much for creating jobs, as NV Energy and Harry Reid claim.
PUC Commissioner David Noble said, “Paying for generating capacity that is not needed places unnecessary costs on ratepayers.”
But monopoly NV Energy, owned by billionaire Warren Buffett, earns its profits by being allowed about a 10 percent return on equity. The more equity, the more profits. The ratepayers shoulder all the risk and cost.
As for that Nellis solar power, Harry Reid once bragged about how the solar array was saving the Air Force $1 million in power bills. He neglected to note that the installation cost $100 million. The return on investment would take 100 years for solar panels that have a life expectancy of 20 to 30 years.