trending Market Intelligence /marketintelligence/en/news-insights/trending/_oDE_ryKBUJc5GYpqLMX7Q2 content esgSubNav
In This List

NV Energy plant acquisitions tied to coal reduction plan


Despite turmoil, project finance remains keen on offshore wind

Case Study

An Energy Company Assesses Datacenter Demand for Renewable Energy


Japan M&A By the Numbers: Q4 2023


See the Big Picture: Energy Transition in 2024

NV Energy plant acquisitions tied to coal reduction plan

's recently announcedplans to acquire natural gas-fired capacity in the Southwest are tied to the company'sefforts to reduce its coal-fired generation.

Newsof the acquisitions came in two April 29 announcements. First, said it had reached a dealto sell its South PointEnergy Center in Mohave Valley, Ariz., to NV Energy. Later that same day, NV Energysaid it would buy theremaining 25% share of the Silverhawknatural gas-fired combined-cycle facility in Clark County, Nev., from the .

The plannedacquisitions will help address long-term reliability needs of customers and provideNV Energy with sufficient resources as the company reduces its coal-fired generation,NV Energy spokesman Mark Severts said.

"Additionally,these purchases align with our commitment to delivering low-cost energy to our customers,as well as having reliable and flexible energy resources to backup Nevada's growingrenewable energy portfolio," he said.

SNL Image

The subsidiaryis in the midst of reducing coal-fired generation in southern Nevada. The companyshut down three 100-MW units at the ReidGardner station at the end of 2014 and plans to shut down the remaining257-MW unit at the end of 2017, Severts said.

NV Energywill then eliminate its 11.3% ownership in the Navajo Generating Station in Arizona at the end of 2019.The scheduled shutdown and divestment from the Navajo power plant are tied to passed in 2013 that providedthe utility with the authority to move ahead with a plan to retire 800 MW of coal-firedgeneration by 2020 and replace it with 550 MW of gas-fired generation and 350 MWof renewable energy resources. NV Energy's emissions reduction and capacity replacementplan was subsequently approved by the Public Utilities Commission of Nevada.

The naturalgas-fired combined-cycle South Point Energy Center, located on the Fort Mojave IndianReservation, has an operating capacity of 586 MW. The sale, subject to certain conditionsprecedent, as well as federal and state regulatory approvals, is expected to closeno later than the first quarter of 2017.

The Silverhawkfacility has an operating capacity of 600 MW. NV Energy, in a plan in July 2015, said it was interestedin purchasing the Southern Nevada Water Authority's interest in the plant to helpmeet near-term resource needs.

The companyis now working on its integrated resource plan, Severts said, and that plan to befiled this summer will include information about future customer growth and demand.

NV Energyis seeking another 400 MW to 700 MW of long-term firm capacity and energy resourcesbeginning in 2018 in an ongoing RFP. Severts said NV Energy is evaluating responsesto that RFP issued in February. According to a timelineof the process, NV Energy expects to file for PUCN approval in July and get a rulingin December. 

NV Energyis also negotiating another RFP issued in February for 135 MW of renewable resources,35 MW of which the company would own, and the remaining 100 MW coming through apower purchase agreement.

In astatement, Kevin Geraghty, NV Energy's vice president of energy supply, said whilestill being finalized, initial results of the renewable energy RFP look promising.The company did not name any new resource, but Geraghty said it would be low enoughto allow interested customers to be served with more clean energy at no morethan a half-cent premium per kWh.

The company will work with interested customers through the summermonths and resulting NV GreenEnergy Rider agreements with qualifying customers willbe submitted to the PUCN for approval by Aug. 15.