THE NEVADA RPS COMMENTS - FIRST AND SECOND

Tuesday, May 14, 2002

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A Renewable Energy Portfolio would in addition to water conservation, energy generation diversification, and economic diversification also create a potential 27,229 full-time equivalents over 10 years according to the comments filed by the Nevada AFL-CIO and REPP January 18, 2002 to the Nevada Public Service Commission.

The 27,229 FTE's is the peak potential if all manufacturing facilities were created instate. Based on the high potential and based on the state's $16,104 it pays for unemployment benefits, the state could avoid $438 million in payments for the ten year period. If only installation, operation and maintenance were instate then Nevada could still save $130 million over ten years.

New generation has a cost to consumers, and renewables would cost $0.01 per kWh under a 5 percent RPS, but only $0.003 per kWh at a 15 percent RPS. However, if installation, operation and maintenance jobs were created instate the unemployment savings would be $0.00407 per kWh.

Another key benefit to the RPS is water conservation. Whether electricity is generated from coal, natural gas, or nuclear - all are forms of thermo-electric generation which nationally require 28 gallons of water per kWh. According to the USGS, however, Nevada used 0.6 gallons per kWh or 34.8 million gallons per day to produce 19 billion kWh. Renewable generation with the exception of biomass co-firing uses no water.

Nevada is currently negotiating contracts for $150 to $200 per acre-foot [326,000 gallons]. If the 0.6 gallons use per kWh is correct, then the RPS additionally saves the State $0.0003 per kWh. With the 15 percent RPS this is a water cost savings of $1.5 million in 2013, or based on the national average a savings of $73 million.

After reviewing all the energy cost benefits, the comments also promote the RPS for lowering pollution, increasing energy security, and adding capital improvement.