Living in the land of hyperactive hyperbole that is Oscar Goodman's Las Vegas, it can be hard to take press releases from governmental (and quasi-governmental) entities touting "big announcements" very seriously. This time last year, prior to his State of the City address, Goodman promised a major announcement soon; speculation was that he'd finagled us a Major League Baseball team. "Imagine, Reggie Jackson, No. 44, Mr. October, being the first African-American owner of a baseball team which will be situated in our city of Las Vegas, wouldn't that be a feather in our cap?"
It would.
But it hasn't happened.
And remember all the big announcements-coming-soon about Downtown? About Cleveland Clinic operating the academic medical center? About Pittsburgh Medical Center operating the academic medical center? About Related Cos. master-planning the 61-acre, former Union Pacific plot? All have fallen through.
That said, it was still a bit surprising to see a Goodman-esqe boast on a press release from energy provider Sierra Pacific Resources: "Walter Higgins will make a major announcement regarding developments that should have a dramatic impact on the future of electric service throughout the state of Nevada."
These were big words for a utility that hasn't exactly tore it up in the positive press department the last six years. To wit: seemingly endless rate-hike requests; Enron suing for $336 million (an ego buster if there ever was one); much-criticized spending during the 2000 energy crisis ($922 million to buy energy from other states).
All might be forgiven, if not forgotten, if Sierra Pacific Resources' plan for a $3 billion power facility in White Pine County lives up to the advance billing touted in a Monday presser. More Kenny Guinn than Goodman in his delivery, Higgins, Sierra Pacific Resources' chairman and chief executive officer, was monotone throughout the conference—no real sense of excitement.
Of course the project doesn't really sound sexy—the first phase calls for two 750-megawatt, coal-fired plants and a 250-mile transmission line providing the first-ever electrical connection between Southern and Northern Nevada; construction should begin in 2007, with the plants operational by 2011. An additional $2 billion phase would add two 500-megawatt coal-gasification units. But if it doesn't sound sexy, the results sure are.
"This will reduce the need to send money outside the state to bring energy in, will increase dependence on renewables [renewable energy], decrease dependence on natural gas. We'll have the ability to move renewables throughout the state, use wind, geothermal and solar energy," Higgins told a handful of reporters and Sierra Pacific Resources staff in West Sahara offices of its Nevada Power subsidiary. "We are investing in Nevada and [in the long run, this] will produce lower power costs for our customers."
Reduced rates! Woo-hoo!
... Don't go spending that extra money yet.
There are still hurdles.
Environmentalists haven't had a chance to nitpick. Representatives from the Southern Nevada chapter of the Sierra Club and the Progressive Leadership Alliance of Nevada couldn't be reached for comment before press time. The Public Utilities Commission, at times one of Sierra Pacific Resources most vocal critics, has to sign off, too; Higgins says the paperwork will be filed in February. Coal gasification remains controversial, if unproven. Environmentalists contend the technology, which converts coal partially or completely to combustible gases—carbon monoxide, carbon dioxide, hydrogen, methane and nitrogen (after purification, it can be used as fuels or as raw materials), needs to mature. The final phase is contingent upon coal gasification becoming commercially viable, Higgins says. Which is why he's keeping tab on companies like General Electric Energy and Bechtel—they teamed in 2004 to develop a standard commercial product for gasification projects.
"I'd like somebody else to make the mistakes that need to be made," he says.
There's also the not-so-little matter of financing this project. Higgins says bonds would be sold and there'd likely be a stock offering.
"I'm confident we can raise the money."
Good luck.