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Nevada Power to build 500 MW natural gas plant

28 November 2007 -- Nevada Power Co., a unit of Sierra Pacific Resources, plans to build a 500 MW natural gas-fired combined cycle plant as an expansion to its Harry Allen Generating Station approximately 35 miles north of Las Vegas. The facility, subject to approval by the Public Utilities Commission of Nevada, is expected to be operational by the summer of 2011.

Michael Yackira, president and chief executive officer of Sierra Pacific Resources, said the decision to move forward with the Harry Allen expansion was largely based on uncertainties related to the timing for the opening of the company's proposed 2,500 MW coal-fired Ely Energy Center in eastern Nevada. "Because of the current permitting schedule, it is unlikely that our original plans to have the first 750 MW phase of Ely operational by late 2011 can be met."

Yackira said the proposed natural gas plant had been contemplated to be built after the Ely Energy Center was fully operational. The current timing for Ely now requires the company to accelerate its plans to build this facility at the Harry Allen site.




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