Predictably Harry Reid, D-Green Energy Cronies, launched into full pouting mode after the Nevada Public Utilities Commission killed a proposal by NV Energy to build a $438 million, 200-megawatt photovoltaic solar power plant on the Moapa River Paiute Indian Reservation.
“This solar project would have provided hundreds of good paying jobs for Nevadans as well as economic and health benefits for the Moapa Band of Paiutes, who have been subjected to nearly five decades of pollution from the Reid-Gardner plant,” Reid’s statement reads. “With Nevada’s economy on the upswing, more power from clean energy sources is needed to feed the grid and fuel job creation. What more fitting then a solar plant on the Moapa Band of Paiute’s reservation?”
Though the coal-fired Reid Gardner Generating Station had undergone extensive technology improvements and was among the cleanest coal facilities in the nation, Harry “Coal Makes Us Sick” Reid managed to twist enough arms in the 2013 Legislature to garner passage of Senate Bill 123, which mandates closing the plant — with ratepayers picking up every last dime of expense rather than the shareholders of NV Energy — and replacing its 557 megawatt capacity with brand new natural gas-fired and renewable energy plants.
Of course, Sen. Reid neglects to mention that the customers of NV Energy don’t need 200 megawatts of power, but only 54 megawatts, and even that can be delayed awhile. Nor does he mention that those 54 megawatts, when and if it is needed, could be provided by spending $85 million on standard combustion turbine technology, not $438 million.
The Moapa Project, as proposed, would have been added to the total equity of billionaire owner Warren Buffett’s NV Energy. The PUC currently allows a return on equity of a little more than 10 percent, though the power company has asked for 15 percent for some recent project. The more equity, the more profits. Do the math: 10 percent of $438 million.
PUC documents indicate that approval of the Moapa plant would have cost ratepayers $50 million in 2017 alone, which “may have a significant effect on the creation of jobs in Nevada.” Possibly permanently negating Reid’s “hundreds of good paying (temporary) jobs?”
Add to this the fact that solar power costs about three to four times as much per kilowatt-hour as power from coal- or natural gas-fired plants.
Nor does the power company need the Moapa plant to meet its legislatively and arbitrarily established renewable power requirement. Even without this project NV Energy has enough renewables to satisfy the law through 2027.
All of the added expense for NV Energy would be propagated across the grid and affect the rates of power uses throughout the region, whether customers of NV Energy or not.
Additionally, the utilities commissioners were concerned that the power company had not opened the proposal to competitive bidding, which might help assure the lowest possible price for ratepayers.
Power users across Nevada should be grateful someone is looking out for us when it comes to our power bills, because it sure isn’t Harry Reid or our state lawmakers. Paying higher power bills makes us sick, Harry. — TM