[CEM 1165 / January 27, 2012]

SolarReserve Project Shows That Cal-ISO Grid Connections Remain Entangled in Difficulty

SolarReserve once envisioned connecting its Rice Solar Energy Project to the Cal-ISO balancing authority, but that proved too complicated. An amended power-purchase agreement for Rice, a unique solar-thermal project with molten-salt storage, calls for interconnection to the Western Area Power Administration, a pseudo-tie arrangement with Cal-ISO and a later operational date. Rice spent millions in futile pursuit of Cal-ISO interconnection, but connecting to WAPA has some benefits.

Cal-ISO Lobbies FERC to Keep Sutter Energy Center Running With Capacity Payment

The CPUC has proposed a resource-adequacy payment for the Sutter Energy Center, but Cal-ISO went ahead asking that the plant be designated for a capacity payment mechanism. In a filing before FERC, Cal-ISO said forecasts that the plant would not be needed by 2017 are based on unreasonably low load-growth projections and overly optimistic scenarios of demand-response and efficiency gains. The grid operator pushed for a CPM designation in case the plant does not get a resource-adequacy contract.

Judge Refuses to Lift Low-Carbon Fuel Standard Injunction; CARB Appeals

In a ruling issued this week, a federal judge refused to allow the California Air Resources Board to continue enforcing the state's low-carbon fuel standard-a key component of California's strategy to achieve the emission reductions mandated by AB 32. The same judge last month issued an injunction against the LCFS after deeming the regulation unconstitutional because it puts out-of-state fuel producers at a competitive disadvantage. CARB, now pursuing a stay of the injunction with the 9th Circuit Court of Appeals, reports the injunction is hurting clean-fuel producers and investors.

Hidden Hills Project Moving Slowly at CEC

BrightSource Energy's proposed 500 MW Hidden Hills Solar Electric Generating System project is moving through the CEC certification process, albeit a bit slower than initially expected. CEC staff proposed a six-week delay in issuing a preliminary staff analysis of the project due to challenges it has encountered in the discovery process, including the need to get more information from the developer.

Also In California Energy Markets This Week . . .

• Diablo Canyon Studies Raise Further Questions
• Improper Use of Cars, Gas Cards Found at NMPRC
• Obama Backs Clean Energy in State of the Union Speech
• SMUD Moves to Sell Solano County Wind Farms

       ...And Much More!

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