Nevada’s electric monopoly, NV Energy, has asked the state Public Utilities Commission to approve a controversial proposal to build a new 706-megawatt natural gas power plant that could cost up to $1 billion. Compared to the alternative of purchasing natural gas power from existing power plants, the marginal cost to ratepayers of NV Energy’s plan for a new power plant would be $115 million in 2020 alone. Building the new power plant would reduce employment by 1,614 jobs, and lower investment in Nevada by $18 million. Electricity rates would increase by 3.2 percent, costing the average consumer each year an additional $31 and the average industrial rate payer $9,970. From 2020-2025, the increased cost to ratepayers will total $604 million.
Legal constraints on government spending redound to the benefit of the economy and substantial improvements in living standards.