January 13, 2003—Two Nevada-based utility subsidiaries of Sierra Pacific Resources have signed long-term contracts with Duke Solar Energy to supply 50 megawatts of electricity generated by solar power from a plant to be located near Boulder City, Nevada. If approved, the contracts would make Nevada the second-largest producer of solar energy in the country.
Nevada Power contracted for approximately two-thirds of the power and Sierra Pacific Power Company contracted for approximately one-third. The companies will now make filings with the Public Utilities Commission of Nevada, which will determine whether they should be approved.
The contracts are part of the two utilities’ actions to comply with legislation that requires the use of a certain percentage of renewable energy sources—solar, wind, geothermal and biomass—to generate electricity for customers within the state. The legislation contains an escalation provision that requires providers of electric service to increase the use of renewable energy by two percent every third year, until the provider’s energy portfolio accounts for 15 percent of its total energy sales. The requirement for solar-generated power must be 5 percent of the total renewable energy portfolio.
With the addition of this solar contract, Sierra Pacific Resources expects to be able to satisfy the renewable portfolio requirements for both utilities for the year 2005 and exceed the requirement for the year 2006.
