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Sithe Global Cancels Water Contract 3.28.08 PDF Print E-mail

Sithe Global cancels water contract

Article published Mar 28, 2008

thespectrum.com

By BOB CHALLINOR

Desert Valley Times

Mesquite - Sithe Global Power has canceled its contract with a Lincoln County water provider, but a company

spokesman said the Toquop project still "is going forward."

Frank Maisano, Sithe Global Power spokesman, confirmed Tuesday that his company canceled a water contract

with two Lincoln County Land Act developers who were going to provide water for the 750-megawatt, coal-fired

Toquop power plant.

"I can't talk about it, except to say we had to cancel because their contract was set to begin a little too early for us,

and we're running a little behind," Maisano said. "The (Toquop) project is going forward. Negotiations are going on

for additional water resources."

"The developers - Matt Davis and Dennis Rider - had an agreement with Sithe Global," said Dorothy Palmer at

Vidler Water's Carson City office. "We never had a contract with Sithe Global."

"This is good news," said Mesquite Mayor Susan Holecheck. "This is making Sithe Global step back. Any delay

helps. A lot has happened in the last month to lead to such hopeful developments."

The Mesquite city council has gone on record as opposing construction of the Toquop plant.

Water won't come from Virgin Valley Water District - which went on the record opposing the amount of water the

Toquop power plant would use. Toquop would need 2,500 acre-feet annually to operate.

"The Lincoln County developers agreed to sell 2,500 acre-feet of water out of their next allotment, if they were

going to get it approved by the state engineer," said Mike Winters, Virgin Valley Water District general manager.

"Now they (Sithe global Power) needs to go somewhere else for water."

Sithe Global Power won't be getting water from Southern Nevada Water Authority either.

"I talked to the water resource people, and we have not been contacted by Sithe Global," said Roger Bueherer,

SNWA public information coordinator. "All of our groundwater has been sold back to Virgin Valley Water District or

has been reserved to go out to Lake Mead for our use. Our water's spoken for."