DOE Offers Loan Guarantee for New Southwest Transmission Project
October 20, 2010
DOE announced on October 19 its offer of a conditional commitment for a $350 million loan guarantee to develop the One Nevada Transmission Line (ON Line). ON Line consists of a new 500-kilovolt transmission line that will run 235 miles from Ely, Nevada to just north of Las Vegas. The project will carry approximately 600 megawatts (MW) of electricity, including renewable energy resources in northern Nevada. It will also integrate existing transmission systems in northern and southern Nevada, improving grid reliability and efficiency, and reducing power costs. This is the first transmission line project to be offered such a commitment by DOE's Loan Programs Office.
The ON Line project will be the first phase of the Southwest Intertie Project which, when fully completed, will carry approximately 2,000 MW of electricity and will enable wind and solar resources in Wyoming, Idaho, and Nevada to power the Southwest and California markets. The ON Line project is expected to contract about 85% of its parts and labor from U.S.-based companies, and it will create approximately 400 construction jobs. DOE, through the Loan Program Office, has issued loan guarantees or offered conditional commitments for loan guarantees to support 16 clean energy projects totaling approximately $16.5 billion. See the DOE press release and the Loan Guarantee Program Web site.