It’s the Infrastructure, Stupid

Sunrise Powerlink Gets Boost from CPUC President -- Approval is Next

SDG&E got a boost on its efforts to build the Sunrise Powerlink, a $1.9 billion power line proposed to connect San Diego and Imperial counties.

Michael Peevey, president of the California Public Utilities Commission, offered a third alternative for his four fellow commissioners to consider when they discuss the proposal on December 18, 2008.

President Peevey's proposal would allow SDG&E to build the Powerlink without any condition that the line be required to deliver green energy to San Diego.

The proposal points to a southern route that avoids Anza-Borrego Desert State Parkand communities such as Julian and Santa Ysabel.  Does he have the votes to get this done?  Sources say yes. 

I have said before, infrastructure is in short supply -- and our continued grwoth -- like it or not -- demands that we build the necessary infrastructure that we will need to keep the lights on.  And for those who say we don't need it -- not only do we need transmission, we need to add more generation inside of California too.  Failure to do these necessary upgrades and construction will cause us to fail on the effort (and now law and executive order) to get to a greener future.

CPUC's Trick or Treat on Sunrise

On all Hollows Eve, the CPUC offered a treat to SDG&E:  competing proposed decisions on thier proposed Sunrise Powerlink.  The trick:  the two proposed decisions either partly or fully oppose the project.

The first of the proposed decisions, authored by an administrative law judge, denies the application for the 150-mile Sunrise Powerlink altogether, saying the project could significantly raise electric rates and do extensive environmental damage if built, and “is not needed to meet California's current renewable (energy) requirements.”

The second proposed decision, written by Commissioner Grueneich, approves the project but denies SDG&E its preferred northern route.  Grueneich argues that Powerlink is needed to meet state goals in reducing greenhouse gases, but the utility should use a southern route through

San Diego

County

that avoids

Anza-Borrego

Desert

State Park

and all tribal lands.

The full commission is not expected to vote on the two proposed decisions until December 4 at the earliest.  The commission will hear comments from interested parties and oral arguments at a public hearing in

San Francisco

on November 7.

CAISO CEO Says Grid Needs 6 New Major Transmission Lines in Addition to Sunrise Powerlink and Tehachepi Transmission Line

Yakout Mansour, CAISO CEO, delivered keynote addresses this past week at the California Manufacturers and Technology Association’s Annual Energy Conference and at the California Council for the Environmental and Economic Balance conference.  In his nearly identical remarks at both conferences (Wednesday and Thursday, respectively), Mr. Mansour made some interesting pronouncements.  Following are the highlights:

 

·       California’s Transmission and Generation Siting process must be streamlined as it poses incredible challenges (particularly to goals for renewable portfolio standard— RPS, generation integration and greenhouse gas reduction – as well as providing necessary generation for California’s continued energy consumption growth)

·       Current

California

nameplate capacity is critical in meeting the 20% RPS under current law, achieving 33% RPS will be even more difficult

·         Current CAISO interconnection cue is 110K MWs – of this 70K MWs are renewable-this is generation proposals that are under consideration and must be studied by the CAISO to determine how and where they would connect to the grid

·         CAISO expects that 85% of this generation will not be built

·        CAISO study concludes that in addition to the Tehachepi and

Sunrise

transmission lines, 6 additional major transmission lines will be needed to help CA meet RPS, GHG and growth requirements.

As the Dust Settles in Borrego Springs… What Now for the Sunrise Powerlink?

The CPUC held two back-to-back public participation hearings in Borrego Springs on Monday (5/12). The most notable difference from all of the previous hearings held thus far was that almost all of the commissioners were in attendance. CPUC President Peevey and Commissioners Bohn, Simon and Grueneich were present for over eight hours of public comment on the project.

What did we see or learn from the testimony? Nothing new, in fact, it was very similar to the five previous hearings that were held in the last few months in various San Diego communities. If I closed my eyes and listened – the song remains the same.

What we did see – were numbers. The opposition really did show up and this time they brought a few folks that are no strangers to spotlights. And if I have learned nothing else about Mike Aguirre, he never met a camera he didn’t want to jump in front of, and now as City Attorney, the next word you can always expect is “lawsuit.” He may have a case, but having watched him on energy matters (ever since the energy crisis of 2000-2001) before, this is likely to be more spotlight than action.

I was a bit surprised by Supervisor Diane Jacob, she raised points about the firefighting hazards that she had not raised before – or maybe I had just missed that before. Senator Christine Kehoe (also Chair of the Energy Committee) did not attend, but did have a representative read a letter into the record. Other than making it clear that she opposes any route through the State Park, she stressed that distributed generation is being overlooked as part of the solution to San Diego's energy needs.

What does all this mean? I think that the opposition scored one for their side – and the CPUC will now have to sharpen the pencil to draft an alternate proposed decision that outlines a clear path to construction for this project if it is going to get built. I still believe it will get built, and I further believe that the Commission will find a way to secure the right formula to getting this project approved. The big question now is what will the route be and when will the line be energized? Every year of delay, will mean one more year of tighter energy reserve margins for the region. And while no one wants to hear the word “blackout” – the CAISO will tell you that delays may really pinch system reliability.

Arizona Critical of SCE Devers Transmission Line in Letter to FERC

The Arizona Corporation Commission (ACC) has responded to the Federal Energy Regulatory Commission (FERC) concerning Southern California Edison’s (SCE) appeal on the proposed Devers-Palo Verde No. 2 transmission line.

The ACC defended its June 2007 decision to deny an application for the 230-mile, 500 kV line that would run from the Palo Verde hub area in Arizona to the Devers substation in Southern California.

In their letter to FERC, the ACC complained about higher levels of nitrogen oxide pollution from Arizona power plants and loss of water used in generating power that will be sold to SCE. The project also “raised concern about its negative impact on the environment, particularly in and around the Kofa National Wildlife Refuge.” The ACC went on to say that SCE has other options to satisfy its needs, which include building new power plants and using renewable energy.

SCE has appealed the Arizona denial to FERC because the DPV2 line falls within the U.S. Department of Energy’s Southwest Area National Interest Electric Corridor, as authorized under the Energy Policy Act of 2005. This is a very interesting test to the Federal Corridors portion of the act – and will prove interesting as the Sunrise Powerlink continues its path to construction.

Governor Schwarzenegger Message to Republicans, Democrats and Environmental Activists: “Let things Move Forward”

On Friday last week, Governor Schwarzenegger delivered a very important keynote Address at the Yale Climate Change Conference. In his speech, the Governor speaks bluntly and basically tells environmentalists to get out of the way and let important projects that can bring environmental benefits move forward. The Governor states very clearly Democrat’s and environmentalists need to do the right thing and move out of the way:

“But the important point I want to make is that environmental activists and Democrats many times are just as much an obstacle in moving forward. Rhetorically, of course, they love to talk about renewable energy and geothermal and wind all those kind of things. But many times we have seen they are trying to slow down the approval process. It's kind of a schizophrenic behavior. They say that we want renewable energy but we don't want you to put it anywhere, we don't want you to use it.”

In what I see as the second time that the Governor has essentially endorsed the Sunrise Powerlink, the Governor says:

“San Diego Gas & Electric wants to develop solar geothermal fields in Imperial Valley and build 150 miles of transmission lines to go and take this power right into San Diego, but it faces opposition even though it would replace an old carbon based power plant.”

With the Renewable Portfolio Standard requirement looking like a failure (the in state utilities will not meet the 20% renewable energy portfolio requirement by 2010), it seems that the Administration has realized that the emperor wears no clothes and that the real problem in getting to the green future lies at the doorstep of the opposition. The Governor here calls on everyone to again do the right thing:

“So the point I'm making is it's not just businesses that have slowed things down, it's not just Republicans that have slowed things down, it's also Democrats and also environmental activists sometimes that slow things down.”

“So as one of my environmental friends and advisers said: There are no silver bullets, only silver buckshot. We need to find creative ways to overcome those obstacles. There's no two ways about it. Neither business nor environmentalists nor Republicans nor Democrats can be set in their ways. I suggest to them: Relax, exhale, just exhale and relax and let things move forward.”

If you have read my posts on this issue, this will all sound familiar. The Governor is absolutely correct in this instance. If we really want a green future, we all need to “relax and exhale and let things move forward.”

Happy Earth Day! Now, How Will We Get to the Green Future?

OK, first let me hug the planet with my public service announcement for EARTH DAY 2008 -- so lets start with my basic message: do the right thing.

And now, my commercial:

Did you know that electric demand for lighting could be cut in half if every household replaced its five most commonly used incandescent light bulbs with compact fluorescent bulbs? Earth Day 2008 is a great chance to start thinking about small, everyday decisions that can have a big impact on the environment. For example, turn your lights off when they are not in use and replace incandescent light bulbs with newer, efficient models.

While Earth Day comes just once a year, protecting and preserving our environment for future generations is something to think about every day.

There, I feel greener already.

But how will we really get there? Last week I attended a meeting of the California Foundation for the Environment and the Economy. The conference concentrated on the role that natural gas will play in getting us to a green future -- basically how natural gas could be the bridge to that new green future -- the transition form carbon to clean.

Natural gas is an excellent clean fuel source that can allow us to bridge to green -- a blue bridge to a green future.

New state-of-the-art clean-burning natural gas facilities are going to be needed in order to really afford us the ability to sustain and support a transition to green. In the last year, over 7500 MWs of new coal generation facilities have been cancelled. But what will replace them as the consumption continues to grow?

My suggestion: conservation, efficiency, new renewables, new transmission and new gas fired generation. Again, we need it all. And lots of it. Even if we are even moderately successful in curbing our apetite for more energy, we will need to need to secure the new infrastructure that will replace the current aging system -- something I will go into on another post.

So, do your part -- and Happy Earth Day!

Big Announcement In San Diego Today... Foreign Investment Steps In on California Renewables

Some time ago, I posted "Renewable Power for Sale – But Who’s Buying?" a post in which I discussed the possibility of foreign capital entering the California renewables market. Well, later today we will hear a major announcment from a company called National Toll Roads (NTR) -- an Irish company that is investing in renewable energy companies in the US and worldwide.

Our connection to NTR will liekly be via the Sunrise Powerlink -- or at least will play a potential roll in its future success. You see, they are investing in the Stirling Solar company. This is the company that in recent months has had financial struggles -- well they now have a partner with deep pockets that may make the solar dish engine project work.

The success of the project will mean a potential 900 MWs of solar generation for the San Diego region -- assuming that the Sunrise Powerlink is built -- this because the Stirling project would connect to the Southern end of the Powerlink.

More information will be coming from the announcement that is scheduled for later today -- Balboa Park if my information is correct -- will be the site of a press conference -- at which the new partnership will be announced.

SUNRISE POWERLINKLIVE BLOG UPDATE 5: HEARINGS CONTINUE IN SF THIS WEEK...

Same witness, new person asking questions... this time Imperial Irrigation District (IID) representative. Basic questions are seeking clarification on the palcement of the potential transmission towers -- will they interfere with irrigation operations to farmland?

Witness response is that while there is the potential for that to occur, the placement will be such that you would not incur problems with the current irrigation process.

Another break -- but not clear how much more the proceeding is likely to get through. At this pace, not much more.

I have a feeling that the ALJ will conclude this soon and start up again in the morning....

SUNRISE POWERLINKLIVE BLOG UPDATE 4: HEARINGS CONTINUE IN SF THIS WEEK...

With the hearing resuming after the lunch break, and about 45 minutes into the new round, the ALJ has asked an important question: can traditional or cultural land be developed? (I am praphrasing here)...

The answer was yes, if specific mitigation can be identified. The ALJ did not let go of the issue very swiftly, which makes me wonder if he has a disposition to a desired or expected answer... this is important as it might be a telling view of the ALJ's thinking.

Next witness -- finally got to witness #2 for the day... the questioning now comes from the farming interests. What kind of towers would be built, where would these be laced -- with respect to the potential for the farm land to still be farmable?

The witness is stating that he believes that SDG&E would work to mitigate the impacts to farmland and the ability to continue to farm... with safeguards (possibly mitigation measures).

I have a feeling that the landowners are looking for committments from SDG&E that the concerns (through agreements) of the landowners be negotiated. Not sure that the contractual side of the discussion will have much success given this forum -- not to mention that the witness is highly unlikely to be able to bind SDG&E to any agreement through his testimony... (this is an SDG&E witness, but I think he's a consultant)...

It's 2pm and UCANs Michael Shames just walked into the room... I think he's scheduled to be part of the testimony tomorrow with Bill Powers...