Officials: State's 'green' power program ineffectual

Nevada's renewable-energy portfolio law, which requires Nevada Power Co. and Sierra Pacific Power Co. to use increasing amounts of renewable or "green" power, isn't working, Gov. Kenny Guinn's energy adviser says.

In a 125-page energy report, Richard Burdette suggested that the Legislature change the law so the two electric utilities would be allowed to meet some requirements through increased energy conservation.

Under the current law, Nevada Power and Sierra Pacific Power were required to obtain 5 percent of their electricity from renewable-energy sources, such as solar, wind and geothermal, in 2003 and 2004. The minimum this year is 7 percent and is scheduled to gradually increase until it reaches 15 percent by 2013.

Five percent of the minimum requirements must also come from solar power sources under the law.

Nevada Power failed to meet both standards in 2003 and 2004. Sierra Pacific Power met the overall renewable minimum but only because it already was receiving renewable energy from geothermal power plants. Sierra, however, didn't satisfy the solar requirement.

"And we're not going to (satisfy the minimum) in 2005, either," Burdette said as his report was presented Wednesday to legislators.

The two utilities had hoped to meet the required minimums by contracting with developers to build renewable energy power plants and then buying energy from them. But many of the plant developers backed out of the agreements, saying it was all but impossible to get financing given the weak credit of the two utilities - who would be their only customers.

Burdette said he's concerned the utilities are violating state law by failing to meet the renewable minimums and that they are in jeopardy of being fined by the Public Utilities Commission for violating the law.