Bonneville Pacific Corp.'s subsidiary, Bonneville Nevada Corp., and Texaco Clark County Cogeneration Co., a subsidiary of Texaco Inc., through a 50-50 partnership, Nevada Cogeneration Associates, have started construction of the Garnet Valley co-generation facility.

The 85-megawatt natural gas-fired facility is located adjacent to Georgia-Pacific Corp.'s gypsum wallboard production plant near Las Vegas. Financing for the facility was arranged by Swiss Bank Corp. and the Bank of California.The $100 million facility will produce 85 megawatts of electrical power for sale to Nevada Power Co. under a 30-year power contract and will sell thermal energy to the wallboard production company.