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Ormat states compliance with utility contracts in Nevada

Steamboat Springs plant of Ormat, Nevada (source: Commons/ Wikimedia)
Alexander Richter 26 Jul 2010

Despite claimed performance issues, Ormat states it complies with its contracts supplying geothermal power to Nevada's largest utlitiy NV Energy.

In an order to the Public Utility Commission, Nevada utility NV Energy states an “inferior” performance of a geothermal company from which NV Energy buys power, and it noted that just half of the renewable energy the utility has contracted for has actually been delivered. The rest has been delayed or canceled, and that’s made it tough for the utility to meet the state mandate requiring it to obtain a certain share of its power portfolio from renewables.”

As part of the order PPAs with three geothermal projects,  two of them from Ormat, were approved. In the order though it says that, “despite the contract approvals, the order pointed words regarding Ormat, a Reno geothermal developer. The commission is “deeply concerned” about NV Energy’s contracts with Ormat, which “has a history of inferior project performance,” the order said.

Ormat owns and operates nine geothermal projects that sell energy or energy credits to NV Energy; eight of those plants are underperforming, the order noted.

Paul Thomsen, Ormat’s director of policy and business development, said Thursday that the company is in compliance with all the contracts it has with NV Energy. For the time periods listed in the draft order, Ormat has exceeded its contract expectations for renewable-power credits delivered to the state and to NV Energy, Thomsen added.

Ormat, which is responsible for about 90 percent of the state’s installed geothermal capacity, also provides a constant power source, unlike other green energy such as solar power and wind farms, Thomsen added.”

Source: NV Energy via TradingMarkets