DesertLink wins Nevada transmission project

California ISO has picked the LS Power subsidiary to build a 500kV transmission project.

LS Power subsidiary DesertLink has beaten three rivals to win the right to develop the Harry Allen to Eldorado project, a 500 kilovolt (kV) electric transmission line that will allow for an additional 200 megawatts (MW) of power to flow between Nevada and California.

The California Independent System Operator (CaISO) selected DesertLink following a competitive bid process launched in January 2015.

The project, which involves building a 60-mile transmission line between the Harry Allen substation, owned by Nevada’s electric utility NV Energy, and the Eldorado substation, jointly owned by Southern California Edison and other minority owners, is expected to cost $144 million. With a delivery due date set at 1 May 2020, it will connect the Nevada transmission system to California’s power grid.

According to an economic analysis conducted by CaISO in December 2014, “the benefits of this project are derived both from anticipated production cost savings and through savings in capacity costs provided by increased access to out of state generation.”

The resulting increased connectivity is also expected to strengthen grid reliability and improve the integration of Nevada’s renewable energy resources, Nevada Governor Brian Sandoval said in a statement announcing CaISO’s decision to move forward with the project.

Headquartered in New York, LS Power was founded in 1990 and is a fully integrated development, investment, and asset management group of companies focused on the power industry. In February 2014, the firm closed its LS Power Equity Partners III vehicle on its $2.1 billion hardcap.