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Company Profile
Valley Electric Association (VEA), is a nonprofit electric utility
based in Pahrump, Nevada. Since 1965 when it was incorporated, and
even before that, most of what today is VEA, was a co-op. Moreover,
VEA has maintained the co-op principles of doing business throughout
its 45 year history.
Farmers Started VEA
Although the VEA service territory is now, fast
becoming more suburbanized, mainly in its largest, and fast-growing
community of Pahrump, it was farmers in the Pahrump and Amargosa
valleys who initially organized and formed the co-op in 1963. It was first known as the Amargosa Valley Cooperative. VEA still serves substantial
irrigation power loads in the Amargosa and Fish Lake valley portions
of its service area. VEA’s residential members are the co-op’s biggest single consumer group.
Central Station Power
Those farmers in the early 1960s, realized that using what was then
called “central
station power,” which is utility-based electricity, would be much more
advantageous, both for farm and residential use, than the individual diesel-generated
electrical power that was most prevalent at the time.
Businesses, would also benefit from central station power.
Utilities Join To Form VEA
In the early 1960s, three other small utilities joined with the Amargosa
Valley Co-op to eventually form what is the present-day VEA. The
Amargosa Valley Cooperative bought the Amargosa Power Company and
also the Beatty Utility Company. The White Mountain Electric Co-op
in Fish Lake Valley then voted to use the AVC’s
management, office, engineering and other services to lower its costs. In November
1964, these entities consolidated their joint efforts and on April 8, 1965, they
incorporated as Valley Electric Association, in large part because a single,
united utility made it much easier to procure funding for what the new co-op
needed most, a transmission line.
REA Finances First Line
It was the mission of the Rural Electrification Administration (REA),
which then President Franklin D. Roosevelt had started in the mid-1930s,
to electrify rural America. On May 5, 1962, REA Administrator Norman
Clapp approved a $3.94 million construction loan to the Amargosa
Valley Co-op to build a 138 kilovolt (kv) transmission line; which
was completed and energized on March 16, 1963.
VEA Serves A Huge Area
VEA’s service territory is huge, even larger now than when its forerunner
utility was started, and it includes more than 6,800 square miles of land, located
mainly along the California-Nevada border, but most of it in Nevada. In the south,
the service area starts in Sandy Valley, southwest of Las Vegas, and extends
for more than 250 miles to Fish Lake Valley and beyond (roughly halfway to Reno),
in the north. In fact, the co-op’s service area is larger than the states
of Rhode Island and Connecticut combined. At present VEA provides electricity
to over 17,000 memberships and to a total of 22,000 meters. In early 1963, when the Amargosa Valley Co-op built its 138 kilovolt
(kv) transmission line (despite an unsuccessful court challenge to its construction
from Nevada Power), and when it initially transported lower-cost hydroelectric-generated
energy from dams on the Colorado River into then sparsely-populated Nye County,
Nevada, where Pahrump and Amargosa Valley are located, the fledgling co-op served
a total of only 607 meters.
Growth Spurs a New Line
The 138 kv transmission line served the co-op in good stead (and
it still does) in a primary capacity until member and load growth
in the service area forced VEA to build a new transmission line,
the 230 kv transmission line. Construction on the 230 kv line started
on June 26, 1995, and it was completed and energized a little more
than nine months later on April 17, 1996. Only a few short months
after that, in the summer of 1996, power use in the VEA service area
skyrocketed, so much so that, without the new 230 kv line, the former
138 kv transmission line would not have been able to handle VEA consumer
demand for power. Brown outs or blackouts would have occurred if
the 230 kv line had not been built.
From LV to PV Headquarters
For many years, VEA’s main office was located in Las Vegas, at 1818 Industrial
Road. In 1981, the co-op built a main office in Pahrump Valley (which is currently
VEA’s engineering headquarters) at 800 E. Highway 372. VEA directors at
the time correctly determined that Pahrump, with its proximity to Las Vegas,
would have the most growth and would therefore be the location most appropriate
for its headquarters building. That 1981 facility served the co-op well until,
once again because of growth and consumer demand for improved facilities, and
right on the heels of finishing its 230 kv transmission line, VEA began plans
for a new, larger headquarters building. That headquarters building, which is
still VEA’s main office, was constructed due west of the first main office
in Pahrump, and it opened for business on October 13, 1997.
VEA Looks to the Future
Many challenges, most notably how to plan for and accommodate member
and power load growth, face Valley Electric Association as it looks
to the future. Because VEA does not generate any of the electrical
energy that it supplies to its members, and must buy most of its power
for consumer use on the open power market, VEA has now, and will continue
to face a huge challenge to buy the lowest cost wholesale power it
is able to, to forestall inevitable rate increases to its members as
the cost of electricity, and all other energy sources rise. These and
other challenges that face the co-op are not insurmountable, and just
as the early farmers successfully faced daunting challenges in the
1960s, VEA expects to also face and successfully overcome
any future challenges. |