Nevada Power Gambles that 600 Megawatts Will Be Enough Additional Generation by Summer of 2007

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Nevada Power Company (NVPC), a subsidiary of Sierra Pacific Resources (NYSE: SRP) (Las Vegas, Nevada) is planning to build 600-megawatts (MW) of new generation at the 112 MW Harry Allen Power Station (PLANT 1015393) in Apex, Nevada. The additions represent a 24.53% increase over current owned generation capacity of 2,396 MW. The Nevada region is experiencing record power consumption growth and demand is forecast to exceed supply during this time period, which would mean that Nevada Power would have to purchase more power from outside sources.

The project will be built in two phases with the first 3.33% to come on line by April 2006 and the other 21.7% coming on line by April of 2007.

The additions will both be natural gas-fired. Phase I (PEC 48000240) will be an 80 MW simple-cycle unit with a combustion turbine/generator set (CT). Phase II (PEC 48000158) will be a 520 MW combined-cycle unit addition with two CTýs and two heat recovery steam generators (HRSG) and one steam turbine/generator. The units will use NOx, SO2 & CO reduction equipment, sound suppression and air-cooling to reduce air emissions and water usage. Construction on both phases is scheduled to begin during the first or second quarters of 2005.

NVPC started in 1906 is a primary subsidiary of Sierra Pacific Resources a hundred forty year old firm serving Nevada and northern California with approximately 1,700 employees.