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NV Energy, a subsidiary of Berkshire Hathaway Energy, has reached a settlement in regards to the Reid Gardner Generating Station, which is located near Moapa, Nevada.
The $4.3 million settlement comes as NV Energy is working to close the plant as the result of a 2013 vote by the Nevada Assembly to shut down the plant, which was one of the nation’s dirtiest.
Three of the plant’s 100-megawatt generating units have already been decommissioned, and the remaining 257-megawatt generating unit is scheduled to cease operation in 2017.
Settlement to Bring Health and Wellness Benefits
$1.5 million of the settlement, which is the result of a lawsuit filed by the Moapa Band of Paiutes and the Sierra Club, will go to provide a community health wellness center on the Moapa Band of Paiute Indians reservation.
The remaining $2.7 million of the settlement will be used to monitor air quality and purchase water rights.
The settlement will be paid by NV Energy and NV Energy and the California Department of Water Resources.
The Moapa Band of Paiutes has long complained of respiratory problems related to coal ash. They have been supported in their efforts to close the plant by Nevada senator Harry Reid.
Senator Reid welcomed news of the settlement.
“For years the band has suffered the consequences of breathing dangerous dirty air from the Reid-Gardner coal plant and this settlement is a step forward. While the settlement will provide relief and help make the tribe’s home healthier and safer, no amount of money can pay for the sickness caused by a half-century of pollution from the coal plant. The Moapa Band of Paiutes and all Nevadans deserve a clean, healthy environment to raise their families in and pass on to their children.”
A Dwindling Number of Coal-Fired Plants
Most of Nevada Energy’s power comes from cleaner-burning natural gas generating stations, however the company still produces power from the 255 megawatt coal-fired Navajo Generating Station in Page, Arizona, and the 522 megawatt coal-fired North Valmy Generating Station in Valmy, Nevada. Both plants are partially owned by NV Energy.
On July 28, 2014, the EPA finalized a plan to cut pollution from the Navajo Generating Station in order to reduce the haze around nearby national parks and wilderness areas.
Berkshire Moves Toward Renewable Energy
Berkshire Hathaway Energy has already invested more than $15 billion in renewable energy generation projects that are under construction and in operation through 2014, and has pledged to invest up to an additional $15 billion going forward.
© 2015 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.