The Public Utilities Commission of Nevada authorized the construction of two private methane gas power plants on Thursday during a special session in Carson City. Tract Capital Management and its subsidiary Fleet Data Centers proposed the Peru Ridge and South Valley facilities to supply electricity for data center projects at or near the Tahoe Reno Industrial Center in Storey County. The commission’s decision marks the first approval in Nevada for methane gas-powered electricity specifically designated for data center use, granting a combined capacity of more than 360 megawatts.
What it means
The approval requires Fleet to secure environmental and local permits, including review by the Nevada Division of Environmental Protection and approvals from Storey County. Fleet stated that its power demands have exceeded NV Energy’s ability to supply electricity for new developments. The plants are expected to operate for two to three years until NV Energy delivers permanent utility service. According to the company, the generation capacity could power approximately 396,000 homes.
Opponents challenged the proposal, arguing it bypasses Nevada’s renewable energy portfolio standard, which mandates that providers source 50 percent of their energy from renewables by 2030. Fleet maintains its plants are not subject to the standard because it is not technically an energy provider like NV Energy. Western Resource Advocates intervened on behalf of Nevadans for Clean Affordable Reliable Energy (NCARE) in July to contest the project and retains the right to appeal the decision. NCARE noted that U.S. gas power plants average about 500 megawatts or less, with about 80 percent falling into that category. The group also stated the plants would consume three times the methane gas compared to NV Energy’s Northern Nevada residential and commercial base in 2025, enough to supply about 652,000 homes.
Public commenters voiced opposition during a nearly three-hour period, citing health risks, climate impacts, and harm to air, water, and quality of life. PUCN Chair Hayley Williamson stated that commissioners face statutory constraints on the evidence considered for public interest evaluations. Commissioner Tammy Cordova said she would fail her responsibility by holding the applicant to a different standard than other applications. General counsel Garrett Weir advised that commissioners cannot consider public comments as evidence when determining their vote and directed the public to contact the Nevada Attorney General’s Bureau of Consumer Protections. John Sadler, communications director for the Nevada Office of the Attorney General, stated the bureau did not participate in the case.
Key facts
- Two private methane gas power plants approved by PUCN
- More than 360 megawatts of electricity generation capacity
- Plants located at or near Tahoe Reno Industrial Center, Storey County
- Expected operational duration: two to three years
- Approval conditioned on Nevada Division of Environmental Protection and Storey County permits
- Western Resource Advocates intervened July 30; retains appeal rights
- Nevada renewable energy mandate: 50 percent by 2030
- Fleet claims exemption from renewable standard as non-utility provider
Source: Nevada Public Utilities Commission announcement, reported by Nevada Current