NV Energy has announced they're postponing, possibly for at least a decade, plans to build a controversial coal plant in eastern Nevada. At the same time, the company says it intends to speed up construction of a power line that could help lower power rates in the long term.
The coal plant had been proposed for Ely, Nevada, in White Pine County, about 225 miles north of Las Vegas. The Ely plant has been met with controversy and opposed by environmental groups as well as U.S. Senator Harry Reid.
The wide open skies and deserts, dramatic mountains and old west charm are the hallmarks White Pine County.
The plan called for a 1,500 megawatt coal-fired energy center, but CEO Michael Vackira says both financial and political realities have derailed the project for now, "As we have been saying recently, many issues, including the capital costs of building the plant and the likelihood of federal climate change legislation in this current Congress have introduced many economic uncertainties in building any coal plant."
"It is absolutely a huge victory for the conservation movement, generally," said Launce Rake with the Progressive Leadership Alliance of Nevada.
Rake says a massive coal plant was never a good idea, "The idea that this high sulfur coal would be contaminating that part of the country, I think would have been a tragedy in and of itself. But the other reason that we had real concerns about it is that coal is bad, coal puts out a lot of greenhouse gasses. We know we have real problems with this."
But the company says it will expedite construction of a 250-mile transmission line to link its northern and southern generation and distribution systems. The company says that should actually help lower energy costs in the long term.
"What that will do is it will allow us to share the resources that did not exist within our state just three years ago -- between the two systems. We have more than doubled the capacity of owned generation within our state," said Vackira.
In a statement, Senator Reid says he applauds the decision by NV Energy. The senator believes it will help facilitate long term clean energy solutions for the state.
