Nevada okays NV Energy's plans on two power plants

LOS ANGELES, Oct 1 (Reuters) - NV Energy, a Sierra Pacific Resources SRP.N company, received approval from Nevada state regulators to build a 484-megawatt natural gas power unit at its Harry Allen station and to buy from Reliant Energy (RRI.N) a 562-MW natural gas unit at the Bighorn Power Plant, NV Energy said.

The Harry Allen unit is to start operating in the summer of 2011. The Harry Allen Generating Station is about 25 miles northwest of Las Vegas.

The Bighorn Power Plant, about 35 miles south of Las Vegas, has been in operation since 2004. The deal to sell the 562-MW unit to NV Energy is scheduled to close later this month.

NV Energy, as Nevada Power, announced in April this year that it would pay $500 million to Reliant for the Bighorn plant.

The Harry Allen plant is now as small one containing two 75-MW "peaker" units.

NV Energy is now the name of the combined utility that used to be two Nevada utilities -- Nevada Power that covered southern Nevada and Sierra Pacific Power Company that covered northern Nevada. Sierra Pacific Resources had been the parent company of both. (Reporting by Bernie Woodall; Editing by Christian Wiessner)