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Offshore Wind Projects Receive Boost from Massachusetts and Biden Administration

LCG, March 31, 2021--The Governor of Massachusetts signed legislation last Friday that authorizes the state to direct utilities to purchase an additional 2,400 MW of offshore wind energy by 2027.

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NV Energy's Greenlink Nevada Transmission Project Approved by PUCN

LCG, March 25, 2021--The Public Utilities Commission of Nevada (PUCN) on Monday approved proceeding with NV Energy's Greenlink Nevada transmission and renewable energy initiative. NV Energy's planned investment in Greenlink is over $2.5 billion.

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Industry News

California PUC Issues Mixed Decision on SDG&E Power Purchase Agreements

LCG, March 22, 2013--The California Public Utilities Commission (CPUC) yesterday approved a request from San Diego Gas & Electric (SDG&E) to enter a 25-year agreement with the Escondido Energy Center, a 45-MW repowering project. The CPUC approved the contract based on the project?s relative low cost, small size increase, high viability, and environmental benefits resulting from a repower.

The CPUC did not approve SDG&E's request to enter power purchase agreements with the Pio Pico Energy Center and Quail Brush Power. The CPUC stated the agreements were denied, in part, because the agreements were scheduled to come online in 2014, but the evidence demonstrated that there is no need for incremental local capacity until 2018, four years into the 20 year terms of the contracts.

Yesterday's decision was made as part of the CPUC's Long-Term Procurement Planning process, which established the need for additional energy supplies for the San Diego area beginning in 2018.

Commissioner Mark J. Ferron, stated, "My goal is simple: to ensure that SDG&E can best meet the future needs of its customers while avoiding a situation where ratepayers pay needlessly for new generation."

"The evidence supporting the need for Pio Pico and Quail Brush is inconclusive, and SDG&E's customers should not be made to pay until it is conclusive," stated Commissioner Mike Florio.

The question of need for new generation is complicated given the San Onofre Nuclear Generating Station (SONGS), a significant generating resource in Southern California, has been unavailable for a year due to concerns with cracks in steam generator tubes. The timetable to restart SONGS is unclear. SONGS is jointly owned by San Diego Gas & Electric (20 percent), Southern California Edison (78.21 percent), and the City of Riverside (1.79 percent).

A SDG&E spokesperson state, "The uncertainty surrounding the operation of the San Onofre Nuclear Generating facility suggests that an earlier start date of these facilities would provide added power supply insurance for the region."
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