Barrick to develop own power

Barrick Goldstrike Mines plans to build its own electric generating plant, a move that will allow it to leave the Sierra Pacific Power grid.

Toronto-based Barrick this month asked the state's Public Utilities Commission for permission to opt out of the Sierra Pacific system.

The PUC has 150 days to decide on the case.

If regulators approve the request, Barrick Goldstrike would be the first major user given permission to leave the utility's grid in northern Nevada.

Barrick is mostly tight-lipped on what it plans to do.

Vincent Borg, vice president of corporate communications for Barrick Gold Corp., said last week the company plans to build a generating plant fired by natural gas somewhere in Nevada.

The location of the plant hasn't been determined, Borg said, and he played down the immediate importance of the company's filing with the PUC.

"We're simply pursuing regulatory approval," he said.

Noting that utility costs particularly electric power are among the highest faced by miners in Nevada, Borg said Barrick Goldstrike is motivated to ensure a reliable source of power for its future.

"We're going to be in Nevada for a long time," he said.

Barrick Goldstrike operates the Betze-Post and Meikle mines, both about 25 miles north of Carlin.

Sierra Pacific Power doesn't mind that one of its biggest customers plans to leave.

"We have been very supportive of companies that have entered this process," said Faye Andersen, a spokeswoman for the company.

State law allows utilities' big customers those who use a megawatt or more of power to seek competitive proposals from other generating companies.

If the Public Utilities Commission agrees that the move would be in the best interest of the public, big power users can buy electricity elsewhere.

The philosophy of the law that took effect in 2002 was straightforward: If big power users buy electricity from sources other than Sierra Pacific Power and Las Vegas-based Nevada Power, more electricity from their generating stations will be available for smaller customers.

So far, southern Nevada casinos have been most active in pursuing alternative power sources, although regulators have expected that big mining companies also would join the exodus at some point.