Nevada Power seeks approval related to buy of 504-MW South Point plant

Nevada Power d/b/a NV Energy applied Aug. 15 at the Nevada Public Utilities Commission for approval to amend its current integrated resource plan (IRP) to account for the acquisition of the 504-MW, gas-fired South Point Energy Center, which is located in Arizona near the Nevada state line and owned by Calpine (NYSE: CPN).

The company noted that sister utility Sierra Pacific Power, which also does business as NV Energy, applied July 1 with the commission to lease 30% of this power plant from Nevada Power.

Nevada Power said it expects to acquire ownership of the combined-cycle plant, under an April 1 asset purchase deal, by Dec. 31 of this year, at an initial capital cost of $100 million. South Point is a 2×1 facility, including two Siemens combustion turbines, that began commercial operation in 2001.

Calpine had reported in its July 29 quarterly earnings statement that on April 1 it had entered into an asset sale agreement for substantially all of the assets comprising its South Point Energy Center to Nevada Power. This transaction supports a Calpine effort to divest non-core assets outside its strategic concentration.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.