Nevadans to Pay for Monopoly Utility’s Half-Billion Dollar Gas Plant

NEVADA — Today, the Public Utilities Commission of Nevada (PUCN) approved NV Energy’s costly $575.3 million plan to build a 400-megawatt methane gas-burning power plant at the North Valmy Generation Station. The decision was outlined in a draft order and confirmed in a final order, which was not available at the time of this release. This approval will lead to more pollution and force Nevada families and businesses to shoulder the financial burden of this project.

This marks the third gas plant project approved in less than two years, adding over $1.1 billion in costs for 1,300 megawatts of new fossil fuel capacity. This decision locks Nevada into greater dependence on volatile, out-of-state fossil fuels, further delaying investments in more affordable, local clean energy projects.

Community and consumer organizations voiced their opposition at a PUCN consumer session in October, citing rising costs and the unpredictability of electricity bills due to an over-reliance on gas power generation. Meanwhile, intervenors — formal participants in regulatory proceedings — pinpointed flaws in NV Energy’s 2024 Integrated Resource Plan. Advanced Energy United, Interwest, Sierra Club, and Western Resource Advocates identified deficiencies in modeling, inflated demand forecasts, and overstated costs of clean energy solutions, which skewed the analysis in favor of the gas plant. 

Despite these warnings, the Commission approved NV Energy’s plans and failed to address calls for transparency, better modeling, or cost-effective alternatives like demand response programs. As a result, the Commission missed an opportunity to require NV Energy to better collaborate with stakeholders and consider cleaner, more affordable options that do not expose customers to the volatility of methane gas prices.

“This decision is a setback for Nevada’s clean energy leadership and pollution reduction goals,” said Kristee Watson, Executive Director for Nevada Conservation League. “NV Energy’s flawed resource planning and risky spending are driving up energy bills and locking the state into costly fossil fuel dependence, despite the availability of local, affordable, clean energy solutions. Customers deserve thoughtful energy planning that reduces costs, enhances reliability, and accelerates the transition to clean energy. Approving yet another gas plant only deepens the financial risks and environmental costs for Nevadans.”

“Our children and families deserve clean air to breathe and an electric utility that doesn’t saddle us with higher costs,” said Mary Wagner, Field Organizer for Moms Clean Air Force and Eco Madres. “This decision places an unjust burden on Nevada families by driving up energy costs while amplifying harmful pollution that endangers our children’s health. NV Energy should shift its focus from expensive fossil fuel projects to clean, affordable energy solutions that protect public health, keep costs stable, and ensure a safer future for our children.”

“The decision to build more methane gas power plants is disappointing for Nevadans who want more clean energy options,” said Julia Hubbard, Nevada Program Director for Solar United Neighbors. “While we appreciate the new solar projects that were included, families are demanding more opportunities to save money by going solar or making energy-efficient home upgrades. This was a missed opportunity for NV Energy to provide customers with more innovative choices to stabilize their energy bills.”

“Once again, NV Energy is misleading the public about their commitment to clean energy and affordable rates by advancing a fossil fuel project that will cost their customers more than half a billion dollars,” said Jarrett Clark, Communications Director for For Our Future Nevada. “This decision keeps our state hooked on volatile, out-of-state fossil fuels while subjecting working families to unpredictable energy bills. Affordable, clean energy is the future, and Nevadans deserve to take part and benefit from it.”