December 17, 2007

Washington, DC— Continuing his efforts to make Nevada the leader in renewable energy, U.S. Senator Harry Reid of Nevada today sent a letter to the president of the Southern California Edison to encourage converting the Mohave Generating Station (MGS) from a coal plant into a solar power plant.The plant, located in Laughlin, was shut down in December 2005, because the plant’s owners, Southern California Edison (SCE) and other utilities including Nevada Power, refused to install required pollution controls.  There are no plans to restart the plant, which was a key source of jobs for the Hopi and Navajo tribes.   “When the plant closed down, the local communities and Native American tribes lost valuable jobs,” said Reid. “I am urging Southern California Edison to convert this plant and its assets into a vibrant solar power producer to give the area an economic boost. The site’s existing infrastructure could easily be used to promote renewable energy. I stand ready and willing to help facilitate the conversion. It’s the right thing to do.”

A copy of the letter is below.

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   December 17, 2007

Mr. John R. Fielder

President

Southern California Edison

2244 Walnut Grove Ave.

Rosemead, California 91770

Dear Mr. Fielder:

           I write you today regarding the future of the Mohave Generating Station (MGS) in Laughlin, Nevada. There is a clear opportunity to mitigate the job and revenue losses caused by the shutdown of MGS by replacing the facility’s lost generating capacity with clean renewable energy. I hope that I can be of assistance in facilitating that transition.

           As I mentioned in my letter to you dated December 14, 2005, the approximately $40 million in proceeds from the sale of MGS’s 50,000 tons of sulfur dioxide allowances should be invested in renewable electricity generation at the site, and possibly other nearby areas. Southern California Edison should seek proposals for developing solar thermal or solar PV energy facilities at the site, which would not only replace some of the generating capacity lost by MGS’s shutdown, but also mitigate some of the economic losses that local communities are experiencing. 

           I encourage SCE to cooperate with the Navajo and Hopi Tribes, local government, other stakeholders, and potential retailers or purchasers of clean power from MGS to turn the plant’s closure into a win-win-win situation for all parties. MGS’s transmission assets, the intense solar resource, and the human capital of the surrounding communities are extremely valuable and should not be left untapped. 

           I am also willing to play a role in facilitating this transition, and would be pleased to assist the parties in identifying possible federal financing opportunities for developing renewable energy generating capacity at MGS. One federal program that could potentially help finance the transition of the MGS site to a renewable energy facility is the Clean Renewable Energy Bonds (CREBs) program, which provides interest-free bonding authority for municipal electric utilities and rural electric cooperatives. Additionally, federal tax incentives for renewable energy property, such as the Business Energy Tax Credit and the Modified Accelerated Cost-Recovery System (MACRS) for renewable energy projects could help make this transition cost effective. 

           Converting MGS or viable parts of it to clean renewable energy generation would be a great symbol to the Southwest and a real badge of honor for the plant's owners. Please let me know if we can work together to achieve these beneficial goals.  

                                                           Sincerely,

                                                           HARRY REID

cc:       Joe Shirley, President, Navajo Nation

           Benjamin Nuvamsa, Chairman, Hopi Tribal Council

           Board of County Commissioners, Clark County

           Michael Yackira, CEO, Sierra Pacific Resources

           Sumner J. Koch, Senior Attorney, Southern California Edison

           H. David Nahai, General Manager, Los Angeles Department of Water and Power

           Richard H. Silverman, General Manager, Salt River Project