A new electric generating plant that Sierra Pacific Power Company is building in northern Nevada will reduce the state’s reliance on volatile energy markets and increase the utility’s generating capacity by nearly 50 percent.

The 541-megawatt, Tracy Combined Cycle Plant, located adjacent to the utility’s Tracy Generating Station east of Reno, is approaching completion.

The construction is on schedule and under budget, and the plant is expected to start producing electricity for northern Nevada and the Lake Tahoe area of California by June 2008.

Fueled by natural gas, the facility, expected to cost some $420 million, will be the largest generating plant built in northern Nevada since Sierra Pacific completed the second unit at the Valmy Generating Station in 1985

The new plant will have the highest thermal efficiency of any generating plant in Sierra Pacific’s system, and will use about one-third less natural gas than existing generating units.

That will result in direct savings to customers and help lessen the company’s exposure to volatile natural gas prices.

Construction began on the $421 million power plant in May 2006. The plant will be the largest generating plant built in northern Nevada since Sierra Pacific completed the second unit at the Valmy Generating Station in 1985.

Benefits of the Tracy Combined Cycle Plant

• Improves electric system reliability
  
  
• Serves the region’s rapidly growing need for energy
  
  
• Promotes price stability for customers because it is highly energy efficient and will require less fuel
  
  
• Utilized environmentally friendly technology