Federal loan guarantee approved for One Nevada transmission line
An important loan guarantee has come through for a major Nevada power project.
Electric-transmission developer LS Power and local power utility NV Energy said Tuesday that the U.S. Department of Energy has granted a $363 million loan guarantee that will allow the two companies to begin developing their One Nevada transmission line, or ON Line.
Michael Yackira, president and chief executive officer of NV Energy, said the start of construction on the power line is "imminent."
ON Line will cost $500 million to build. The remainder of the funding will come from equity and debt from NV Energy. NV Energy will lease all of the line's 600-megawatt capacity, which it plans to use to link its southern and northern transmission grids and to carry renewable power generated in rural areas to urban markets.
The line will run 235 miles from NV Energy's Harry Allen generating station near Apex to its Robinson Summit substation near Ely.
Senate Majority Leader Harry Reid, D-Nev., said in a press conference announcing the deal that ON Line would bring hundreds of construction jobs to the Silver State in the near term, and thousands of jobs in the long run, as it makes more renewable-energy projects possible for both Nevada and California markets.
"We need to keep in mind that power-hungry California has a requirement on the books that by 2020, one-third of all of its energy has to come from renewable sources," Reid said.
"They've acknowledged that they can't meet those goals with what they produce. So there's a built-in market right next door to us." Reid also said.
ON Line is scheduled for completion in early 2013.
Contact reporter Jennifer Robison at jrobison
@reviewjournal.com or 702-380-4512.
