Sierra Club Gave Sierra Pacific Power a D Grade
The utility received the low mark for its expansion of planned natural gas-fired energy capacity.
Updated on Sept. 29, 2026 in Utilities
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The Sierra Club assigned a D grade to Sierra Pacific Power Company in its annual Dirty Truth Report. The utility plans to build 2.7 gigawatts of new gas-fired capacity by 2035 to meet rising power demands.
Why it matters
The utility's shift toward natural gas is driven by the rapid growth of artificial intelligence data centers in northern Nevada, which threatens to undermine the state's established renewable energy goals.
Sierra Pacific Power Company is planning 2.7 gigawatts of new gas-fired capacity by 2035, a fourfold increase over previous projections. Currently, data centers represent 5 percent of sales, but that share is projected to reach 64 percent by 2046.
The players
Sierra Pacific Power Company
This utility provider operates within Nevada and is currently under scrutiny for its planned expansion of natural gas infrastructure.
Sierra Club
This is a prominent environmental organization that tracks and grades utility performance on coal retirement, natural gas expansion, and renewable energy adoption.
NV Energy
This is a major utility company in Nevada that services local data centers and faces challenges in meeting the state's renewable energy requirements.
The details
The expansion effort stems from high electricity demand from northern Nevada data centers, leading the utility to increase its reliance on natural gas. NV Energy anticipates it may fail to meet the state-mandated goal of sourcing 50 percent of its energy from renewables by 2030.
Timeline
September 29, 2026: The Sierra Club released the Dirty Truth Report.
2030: Deadline for 50 percent renewable energy sourcing.
2035: Projected completion of new gas-fired capacity.
2046: Data centers are projected to represent 64 percent of sales.
Market Landscape
The utility's shift toward fossil fuels marks a departure from the state-led transition toward green energy. This strategy prioritizes rapid infrastructure expansion to support the technology sector, effectively challenging the 2020 Nevada renewable energy mandate.
Residents may face uncertainty regarding the state's ability to reach renewable energy targets due to the increased reliance on gas-fired capacity. Customers should note that Nevada Power recently issued $65 million in refunds for overcharging.
The takeaway
The rapid expansion of northern Nevada data centers has created a conflict between the state's climate goals and industrial electricity needs. Consumers should monitor energy policy updates to see if utility regulators force a pivot back toward mandated renewable sourcing.
Further reading
Learn more about local power grid developments in the Utilities section.
Source note: This article includes information reported by RocketNews.
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