NV Energy CEO: ON Line project to enter service at end of 2013

NV Energy’s (NYSE:NVE) One Nevada, or ON Line, transmission project is projected to enter service at the end of 2013, President and CEO Michael Yackira said during the company’s 4Q12 earnings call Feb. 22.

The company halted tower construction in February 2012 due to damage caused by the wind, and was given permission 10 months later by the Public Utilities Commission of Nevada (PUCN) to resume construction. 

“Following the completion of the transmission line, we will have the capability to jointly dispatch our power plants throughout the state,” Yackira said. “In addition, ON Line will provide the ability to transmit renewable energy projects that are currently being developed.” 

The $552m ON Line project is a 235-mile, 500-kV transmission line that will connect the company’s northern and southern service territories, running from the existing Harry Allen substation in Clark County to the Thirtymile substation in White Pine County, according to TransmissionHub data. The project is the southern portion of Southwest Intertie Project, sponsored by Great Basin Transmission, which runs from Idaho to southern Nevada. 

The company expects to request approval from the PUCN and FERC to merge its two utilities, Nevada Power Co. and Sierra Pacific Power Co., in mid-2013, the CEO said.

“We’re timing the filings so that the decisions will coincide with the completion of ON Line,” he said.

Yackira said the California ISO and NV Energy continue to evaluate the possibility for exporting renewable energy generated by either new or existing generation from Nevada into California, but said he did not expect clarity to that question before the end of 2013

“We are hopeful,” he added. “I think there still needs to be a public policy review between the two states for any action to take place, because both states, I believe, [have] sufficient resources to meet the portfolio standards in those states, so as long as California continues to believe that, the chances of exporting to California are slim. But time will tell.”

He added that there are more opportunities for renewable energy in Nevada than the state can absorb itself.

NV Energy continues to look for investment opportunities, Yackira said. The CEO has said the company takes a measured approach to generation and transmission investments.

NV Energy reported net income of $17.2m, or 7 cents per share, for 4Q12, compared to a net loss of $25.2m, or 11 cents per share, in 4Q11.

For the year ended Dec. 30, 2012, the company reported net income of $321.9m, or $1.35 per share, compared to $163.4m, or 69 cents per share, in 2011.

The company offered 2013 earnings guidance of $1.25 to $1.35 per share.

About Rosy Lum 525 Articles
Rosy Lum, Analyst for TransmissionHub, has been covering the U.S. energy industry since 2007. She began her career in energy journalism at SNL Financial, for which she established a New York news desk. She covered topics ranging from energy finance and renewable policies and incentives, to master limited partnerships and ETFs. Thereafter, she honed her energy and utility focus at the Financial Times' dealReporter, where she covered and broke oil and gas and utility mergers and acquisitions.