Sierra Pacific Power Co. has received permission from the Nevada Public Utilities Commission to build a 514-megawatt power plant at its Tracy Generating Station 17 miles east of Reno.
A spokesman said the new plant will be gas fired and should be in operation by June 2008. Estimated cost of the plant is $420 million.
"This new facility will provide much-needed efficient energy for Northern Nevada which ultimately benefits all ratepayers," said Roberto Denis, senior vice president of energy supply.
The PUC agreed with utility officials that the plant is important to meet growing demands for electricity in Northern Nevada. Sierra Pacific provides electric power to most of Northern Nevada and Lake Tahoe. Sierra Pacific also distributes natural gas in the Reno-Sparks area.