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NV Energy gets approval to build natural gas-fired power plant north of Las Vegas

Cost to build could lead to higher rates
Posted at 5:39 PM, Mar 17, 2023
and last updated 2023-03-17 22:28:05-04

LAS VEGAS (KTNV) — The Public Utilities Commission of Nevada is giving the green light to build a new natural gas-fired power plant north of Las Vegas.

It's an additional peaker plant that will be located at the Silverhawk Generating Station. Peaker plants are power plants that usually only run when there is high demand for electricity.

The measure was approved on Tuesday and is meeting some opposition.

"Building a new methane gas plant in Nevada is a short-sighted decision that will have long-term negative consequences for the environment and the state's clean energy goals," said Angelyn Tabalba, communications director for the Nevada Conservation League. "Instead of doubling down on fossil fuels, they should be leaning into a clean energy future. For a state considered to be a clean energy leader, this decision sends the wrong message to other energy companies and undermine the progress that we have made towards a cleaner, more sustainable future."

Chispa Nevada, which is a program of the League of Conservation Voters, said they're also against the measure.

"The rushed approval reveals a broken planning process that ignores consumer concerns with methane gas and with fossil fuels generally," national director Estefany Carrasco Gonzalez said. "We urge the PUCN, NV Energy, and other stakeholders to be responsive to our communities and to consider alternative solutions that focus on energy efficiency and to account for the environmental and public health consequences of fossil fuels when they plan for and approve new infrastructure."

Channel 13 reached out to NV Energy, who said the project is needed.

"Even with the construction of the Silverhawk Peaking Plant, NV Energy will still help the state meet the renewable portfolio standard and carbon goals. This decision ensures that NV Energy can reliably provide energy for Nevadans, especially during the state's hottest months from June to September"
NV Energy

Another big concern is the cost of the project. NV Energy estimates the new peak plant will cost more than $333 million — and that it could lead to higher customer rates.

"Nevadans are already being hit hard with high utility bills because of volatile methane prices," said Eric Jeng, the deputy director of One APIA Nevada. "Our communities deserve energy efficiency programs and measures that reduce energy demand to help us drive down expenses — not increase capitol costs from new gas systems."

NV Energy has already raised prices for four consecutive quarters. However, the company said they're looking at eventually switching some of those units to hydrogen so they can rely less on natural gas.

"The new Silverhawk generating units are designed to run on hydrogen in anticipation of meeting our net zero commitments, complementing our expansion of non-carbon resources. We are committed to providing reliable and affordable energy for our customers and reaffirm our commitment to achieve net zero greenhouse gas emissions by 2050."
NV Energy

No timeline for when those turbines could be converted to hydrogen had been laid out as of Friday night.