NV Energy and Great Basin Transmission to Pursue Jointly-Owned
LAS VEGAS – NV Energy (NYSE:NVE) and Great Basin Transmission, LLC, an affiliate of LS
Power, have signed a Memorandum of Understanding to jointly own a 500 kilovolt transmission line
in Nevada. NV Energy would purchase Great Basin’s share of capacity on the jointly owned line
under a long term agreement.
The transmission line would provide access to isolated renewable energy resources in parts of
northern and eastern Nevada. Additionally, it would connect NV Energy’s northern service area
with its service area in southern Nevada, which will enhance overall energy-sharing efficiencies
and renewable energy utilization.
Both companies have been developing separate lines in the same Southwest Intertie Project (SWIP)
corridor that spans 235 miles from north of Las Vegas to near Ely, Nevada. Great Basin has obtained
the major federal, state, and local approvals required to construct the line, and both companies are
seeking a financing agreement with Western Area Power Administration pursuant to federal
borrowing authority granted under the American Reinvestment and Recovery Act of 2009.
Michael Yackira, President and Chief Executive Officer for NV Energy, commented on the
announcement, “Transmission infrastructure is essential for bringing renewable resources to
market, and with as much yet-to-be-developed geothermal and wind energy that we have in the
northern part of the state, a single transmission line connecting the north to the south brings
enormous opportunity for future renewable development”
“This project is a great example of how the local utility, an independent energy project developer and
the Federal Government can work together to deliver a project that is superior to the alternatives. It
will enable transmission access for renewable energy projects that were otherwise isolated from the
market and provide reliability, efficiency and other benefits to the transmission system,” said Mike
Segal, Chairman and Chief Executive Officer for LS Power.
The joint ownership of the project is contingent upon the execution of final agreements and would
require the approval of the Public Utilities Commission of Nevada and the Federal Energy
Regulatory Commission. NV Energy will include the joint ownership proposal as its preferred
alternative in its upcoming Integrated Resource Plan filing with the commission, which will be filed
by February 1, 2010.
Great Basin is currently developing expansions of the SWIP to the north and to the south to provide
access to additional renewable energy resources and markets and additional reliability benefits for
Nevadans. Under the arrangement, NV Energy will have rights to capacity on these expansions at no
additional cost to Nevada ratepayers. Additional capacity will remain available for sale to third
Construction of the jointly owned line is planned to begin this year resulting in approximately
400 jobs and millions of dollars in sales and use tax and property tax payments for Nevada
counties and schools. The line will also enable hundreds of additional jobs as it will provide
market access to spur the development of new renewable energy generation projects.
About Great Basin Transmission, LLC
Great Basin is a single-purpose company formed to develop, finance, construct, own, and operate the
Southwest Intertie Project. Great Basin is wholly owned by LS Power, a power generation and
transmission group. For more information, visit www.LSPower.com.
About NV Energy, Inc.
Headquartered in Las Vegas, Nevada, NV Energy, Inc. is a holding company with principal
subsidiaries, Nevada Power Company and Sierra Pacific Power Company, doing business as NV
Energy. Serving a combined 54,500-square-mile service territory, NV Energy provides a wide range
of energy services and products to approximately 2.4 million citizens of Nevada and nearly 40
million tourists annually. For more information, visit
Forward-Looking Statements Disclosure
This press release may contain forward-looking statements regarding the future performance of Sierra Pacific Power
Company d/b/a NV Energy within the meaning of the Private Securities Litigation Reform Act of 1995.These
statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from
current expectations. These risks and uncertainties include, but are not limited to, the negotiation of a definitive
agreement between the parties and obtaining necessary regulatory approvals.
Additional cautionary statements regarding other risk factors that could have an effect on the future performance of
Sierra Pacific Power Company are contained in NV Energy Inc.'s and Sierra Pacific Power Company's Annual
Reports on Form 10-K for the year ended December 31, 2008 and Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2009, June 30, 2009 and September 30, 2009, as filed with the Securities and Exchange
Commission. NV Energy, Inc. and Sierra Pacific Power Company undertake no obligation to release publicly the
result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events.