Document type:  Newspaper article
Publication:  Las Vegas Review-Journal
Date: Tuesday, November 21, 1995
Page: 5B
Title: Pahrump utility chosen as main supplier for test site
Author:  John G. Edwards, Review-Journal

Valley Electric Association of Pahrump was chosen by the 
Department of Energy on Monday as the primary source of power
for the Nevada Test Site.

The decision represents a major loss for Nevada Power Co., which
provides 22 megawatts of electricity to the test site. Valley Electric 
sells 2 megawatts to the test site.

The Department of Energy's announcement is the latest example of 
how competition is eroding Nevada Power's monopoly.

Nevada Power earlier wanted to offer Mirage Resorts Inc. a special 
contract to retain the casino company as a customer, but the Nevada 
Public Service Commission rejected the proposal.  Mirage Resorts said 
it would build its own power generation plant.

More recently, the Southern Nevada Water Authority has been 
considering alternate sources of power.

Officials are concerned that residential rates will rise if Nevada 
Power loses major customers and their revenues.

A government official, however, said the competitive bidding process 
will cut costs in the long run.

The estimated value of the contracts over 10 years is $55 million for 
the test site and $19 million for the Energy Department's North Las 
Vegas facilities, which will continue to be supplied by Nevada Power.

"We think this process will provide significant savings to the 
taxpayers over the life of the contracts," Terry Vaeth, acting manager 
of the Department of Energy's Nevada Operations Office, said in a 
statement.

Nevada Power spokeswoman Glenda McCartney said the utility had 
not had an opportunity to review the contracts.

Nevada Power remains the primary source of power for the facility 
in North Las Vegas, and the city of Glendale, Calif., will provide 3 
megawatts of additional electricity for the test site.  Glendale 
operates a municipal electric utility.

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