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.

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.”

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...

SUNRISE POWERLINKLIVE BLOG UPDATE 3: HEARINGS CONTINUE IN SF THIS WEEK...

After a brief break, the witness continued... more on the use of land -- BLM and Forrest Service Land (more federal land use designation issues). I think we are driving toward the bigger questions on what route the line might actually take -- are the hounds driving the prey to the hunters? Maybe. The guess here is that you drive to create a problem for the current route -- sensitivities to specific land use on the proposed route vs. an alternative route?

Obviously the better outcome for the opposition here is to present all potential routes as "too sensitive," but at the end of the day, I believe the CPUC will use the testimony to identify a "less sensitive" route -- the much written about "Southern route." That too has become interesting, as there is Indian Nation land that will come into play. Not sure how the CPUC will deal with that -- and by the way, no one has actually talked about that to date.

In reviewing the last few hours -- the hearing just broke for lunch -- I had expected more witnesses to have gone by now... not the case, this is dragging on.

See where we are after lunch -- maybe they return with more energy to power trough this!

SUNRISE POWERLINKLIVE BLOG UPDATE 2: HEARINGS CONTINUE IN SF THIS WEEK...

The last hour has been spent on federal vs. state administrative designations on land use... this is a huge issue for the line, obviously.

More interesting was an overheard conversation -- if you spend any time at the CPUC and recall nothing else of what I post, remember this: voices carry in the hallways!

The overheard conversation has to do with a major announcement coming htis week on Thursday -- major announcement concerning a solar project in San Diego. Sound interesting? Stay tuned... Lets see what we can further overhear!

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

This morning I am trying something totally new... I am sitting in the hearing room at the CPUC and will provide some commentary as the hearing moves forward.

So, far the Administrative Law Judge (ALJ) has opened the hearing and invited SDG&E to call the first witness -- this was quickly inturrupted by rulings on motions to strike from last weeks testimony (nothing too exciting).

The more colorful Bill Powers will not continue his testimony until tomorrow...

As a recap -- the hearings continue on environmental impacts this week... lots of environmental representatives in the room.

Sunrise Powerlink Hearings: How Much Are You Willing to Pay for Green Energy?

Did we learn anything during this week’s hearings? Sure we did, we learned a lot about costs. Delivering energy, green or otherwise is expensive – but if you have read my previous posts, you know that already and also know that I expect green energy costs to soar and that you and I will not be shielded from those costs.

On day one of the reinitiated hearings, SDG&E revealed that the cost of the line has gone up by a factor of $126 million. No surprise to me – everything has gone up (materials in particular have had a huge run up). But it’s the regulatory cost that is also rising. That should not surprise us either.

On day three, the biggest number we heard was the actual cost of the much celebrated Smart Energy 2020 Report that was written by Bill Powers. The report, until now had been playing “hide the ball” on the cost to construct the 900 megawatts of photovoltaics (PV) that te report proposes. In cross examination, Mr. Powers finally admitted that the fully burdened cost of building his 900 megawatts of PV would be around $13 billion.

So, on the one hand we have the Sunrise Powerlink that could provide access to green energy for an initial cost of construction of $1.3 billion (this number will go up because we will have to add on the cost of the litigation that is sure to come – but I am thinking it will likely not go much over $2 billion when it is all said and built – and yes it will have ongoing maintenance costs) – on the other side we have the Smart Energy 2020 proposal that at full tilt will cost $13 billion (and yes, this will also go up because you will encounter delays with entitlements and permitting – trust me, not everyone will be happy and someone will sue and you will have delays here as well – oh, and this too has ongoing maintenance costs).

Q: What have we learned? A: A green future will be expensive and the only way to get there is through new infrastructure. But a better question is how much are you willing to pay for it? If our flying habits are any indication of where the majority will come out on this issue, we’ll all be flying coach. I’ll take the peanuts and Diet Coke, and sign me up for the Sunrise Powerlink, please.