NV Energy, Inc. (NYSE: NVE) announced Friday that it has signed a definitive grant agreement with the Department of Energy (DOE), which will provide $138 million in American Recovery and Reinvestment Act funding for its $301 million smart grid infrastructure proect, called Advanced Service Delivery (ASD).
NV Energy is the first investor-owned utility to reach a final agreement with the DOE, according to President and CEO, Michael Yackira.
NV Energy applied for federal Smart Grid Investment Grant funding in August 2009.
The US Congress appropriated $3.4 billion to DOE from the Recovery Act for smart grid funding. Funding requirements allow for up to 50% of project costs, or $200 million, whichever is less.
The Internal Revenue Service last week issued guidance stating that the grant money would not be subject to federal taxes. DOE said it will now move forward more quickly with issuing the grants.
With a definitive DOE grant agreement in place, NV Energy will finalize
its planning for the program, with the ultimate goal of completing
installation of advanced service delivery infrastructure statewide in
late 2012.
The Public Utilities Commission of Nevada (PUCN) will be evaluating the ASD project as part of NV Energy’s integrated resource planning process in the coming months, and the company will be making other filings with the PUCN to facilitate the studies that are part of the project.
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