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Regulators approve NV Energy coal-to-gas repower project

The public utility can now move forward with ending coal operations at North Valmy Generating Station – the final coal plant in its portfolio.
Regulators approve NV Energy coal-to-gas repower project

NV Energy will move forward with plans to eliminate coal from the company’s portfolio and add additional transmission infrastructure throughout the state after receiving approval Friday from the Public Utilities Commission of Nevada (PUCN). The projects were included as part of the fifth amendment to the company’s 2021 Integrated Resource Plan.

This order allows NV Energy to move forward with ceasing coal operations at North Valmy Generating Station and transition to a natural gas-fired plant by the end of 2025. North Valmy is the company’s final coal plant in its portfolio. The two-unit, 522 MW facility is jointly owned by NV Energy and Idaho Power.

Unit 1, which went into service in 1981, produces 254 MW with a Babcock & Wilcox Boiler and Westinghouse turbine/generator. Unit 2 came online in 1985 and generates 268 MW with a Foster Wheeler Boiler and GE turbine/generator. Coal for the plant is shipped via railroad from various mines in Utah, Wyoming and Colorado.

PUCN also approved NV Energy’s plan to build additional transmission infrastructure to support continued growth in the state, including in the Apex area in the city of North Las Vegas – a growing center of economic development in Southern Nevada.

NV Energy also received conditional approval to begin developing the Sierra Solar project, a 400 MW solar site with a four-hour battery storage system in Northern Nevada.

While regulators approved the project, they expressed concern about its cost and said there would need to be ratepayer protections in the case of cost overruns.

The commission capped Sierra Solar’s construction costs at $1.5 billion and said NV Energy would need to pay credits to customers if the project doesn’t meet its completion goal of April 2027. Sierra Solar would be “the most expensive project ever proposed to be built or owned by NV Energy.”

The state of Nevada is aiming for a renewable portfolio of 50% by 2030 and 100% by 2050.