The U.S. Bureau of Reclamation has announced that it has begun the environmental assessment process for NV Energy’s application to rebuild an electrical substation that serves as a key hub for much of the power supplied to the Lahontan Valley. The facility regulates the flow of power into and out of the Fallon area.

Pending agency approval, construction of the $5.1 million project is expected to begin in 2014, said Lila Yocom, a senior project manager with NV Energy. She said the new substation will be constructed next to the existing facility, which will be retired from service and dismantled. The substation is located near Lahontan Dam.

New equipment installed in the planned substation will improve the reliability of the electric service that NV Energy provides to approximately 8,800 customers in Churchill County.

“This substation is the primary source of electricity for customers in the Fallon area as well as the Fallon Naval Air Station,” Yocom said.  Power from Lahontan Dam enters the electric system at the Lahontan Substation, along with electricity produced by the ENEL geothermal plant in Stillwater and geothermal plants at Soda Lake and Salt Wells.

The City of Fallon and the Naval Air Station operate their own electric distribution systems but rely on NV Energy’s system for bulk supplies of electricity.