Three power plant developers late Tuesday signed a deal with Nevada to
install carbon dioxide capture and sequestration equipment on proposed
coal-fired projects in the state as soon as the technology is available at a
cost-effective price.

The Nevada Department of Environmental Protection signed agreements with
Sierra Pacific Resources, LS Power and Sithe Global Power. Sierra Pacific
plans to build a 1,500-MW plant and LS Power a 1,590-MW plant, both near Ely,
Nevada. Sithe is developing a 750-MW plant near Mesquite, Nevada.

Under the agreement, the developers said they would build the plants so
that CCS technology could be added "when CO2 capture technology is
demonstrated to be feasible and commercially available and can be implemented
in a cost effective manner."

Environmental group Western Resource Advocates opposes the MOUs because
they appear to be unenforceable, Charles Benjamin, WRA's Nevada director, said
Wednesday. The agreements offer "vague promises" for something that may never
be economically feasible, he said.

Nevada's two utilities -- Nevada Power and Sierra Pacific Power, both
Sierra Pacific Resources subsidiaries -- expect a capacity shortfall of about
2,100 MW by 2016.