NV Energy, Cal-ISO, to study transmission to connect two systems

NV Energy (NYSE:NVE) and the California Independent System Operator (Cal-ISO) announced on Aug. 6 that they will jointly study the potential for development of transmission facilities between the two systems, as well as sharing conventional and renewable energy resources for the benefit of the respective customer groups.

Initial conversations between the two entities have already begun, an NV Energy spokesperson told TransmissionHub on Aug. 6.

While the two sides are “just now looking at parameters for the study,” and there is little to discuss in the way of specifics, it is anticipated that any joint transmission facilities would be developed after NV Energy joins its systems in northern and southern Nevada via the ON Line transmission project that is expected to be completed by the end of 2013, the spokesperson said.

The announcement came just days after NV Energy said it would drop its own renewable transmission initiative.

NV Energy CEO, Michael Yackira, told analysts on the company’s 2Q12 conference call on July 27 that the company was dropping the project after determining there was insufficient interest from renewable energy developers to justify moving forward. While company officials were disappointed, Yackira said they remained committed to exploring other avenues for transmission investment.

The original plan for the renewable transmission initiative was to develop a network of five 345-kV and 500-kV power lines to move renewable energy from Nevada into California. Although there was interest, the company didn’t receive enough interest from developers who were willing to pay the costs of building those lines, Yackira said.

At that time, Yackira said the project’s cancellation was not stopping the company from looking at other transmission opportunities even though they’re not particularly defined at this stage.