BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of San Diego Gas & Electric Company (U 902-E) for a Certificate of Public Convenience and Necessity for the Sunrise Powerlink Transmission Project.
Application 06-08-010 (Filed August 4, 2006)
COMMENTS OF THE INDEPENDENT ENERGY PRODUCERS ASSOCIATION ON COMMISSIONER GRUENEICH’S ALTERNATE PROPOSED DECISION (APD)
INDEPENDENT ENERGY PRODUCERS ASSOCIATION Steven Kelly Policy Director 1215 K Street, Suite 900 Sacramento, CA 95814 Telephone: (916) 448-9499 Facsimile: (916) 448-0182 Email:
[email protected] Date: November 20, 2008
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of San Diego Gas & Electric Company (U 902-E) for a Certificate of Public Convenience and Necessity for the Sunrise Powerlink Transmission Project.
Application 06-08-010 (Filed August 4, 2006)
COMMENTS OF THE INDEPENDENT ENERGY PRODUCERS ASSOCIATION ON COMMISSIONER GRUENEICH’S ALTERNATE PROPOSED DECISION (APD)
Pursuant to Rule 14.3 of the Commission’s Rules of Practice and Procedure, the Independent Energy Producers Association (IEP) provides the following comments on the Alternative Proposed Decision (APD) of Commissioner Grueneich. Pursuant to the Administrative Law Judge’s Ruling Granting Limited Party Status of Independent Energy Producers (dated November 12, 2008), IEP limits its comments on the APD to the issue of commitments proposed by the APD to ensure San Diego Gas & Electric Company (SDG&E) uses a significant portion of the capacity of the Sunrise Powerlink to bring renewable energy into the San Diego area. The APD would condition the Commission’s approval of the Sunrise Powerlink on SDG&E providing sufficient assurances to the Commission that the Final Environmentally Superior Southern Route will be used to deliver substantial amounts of Imperial Valley renewable generation to the California market, including San Diego. In
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addition, the APD specifies that, if SDG&E agrees to such a condition, SDG&E shall submit a plan to the Commission, in the form of an application filed in this proceeding within 90 days of the effective date of the final decision. The application is to describe how SDG&E will ensure that Sunrise Powerlink will be used to deliver substantial amounts of Imperial Valley renewable generation. The application, becoming the formal basis for SDG&E to submit its “Sunrise Compliance Plan,” would, among other things, explain how SDG&E would ensure, through binding commitments, that substantial amounts of Imperial Valley renewable generation will be developed and delivered via Sunrise Powerlink starting on the day Sunrise is placed in service; and, specify the renewable generation that will be developed and delivered on the Sunrise Powerlink in sufficient detail for the Commission to understand the viability of the generation, the anticipated capacity factor of the generation, and the process by which the generation will interconnect to Sunrise Powerlink. IEP is interested in moving forward with transmission to interconnect renewable resource zones as quickly as possible. The evidence suggests that the Sunrise Powerlink is cost-effective under a 33% RPS standard. If the Commission determines that the Sunrise Powerlink should be approved, then IEP is concerned that the APD may result in additional delays because the APD requires an additional Application be served by SDG&E in 2009 to enable the Commission and interested parties the opportunity to review SDG&E’s Compliance Plan. This may result in additional delay as the SDG&E filed Compliance Plan is reviewed, debated, etc. IEP is concerned that this procedural step may hinder real progress on constructing transmission to interconnect to the Imperial
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Valley renewable resource area. As an alternative, IEP recommends considering, as a condition of approving the Sunrise Powerlink, additional language in the approved Final Decision committing the utility to an open, transparent, competitive Renewable Request for Offer (Renewable RFO), to be fully completed by December 31, 2009. Any such renewable RFO should result in firm commitments for viable, renewable resources that can become operational and interconnected coincident with the energization of the Sunrise Transmission Line (or soon thereafter) to help SDG&E achieve its stated goal of 33% of retail sales from renewable power by 2020. An IEP-recommended 2009 Renewable RFO will facilitate the timely development and interconnection of renewable generation to use the Sunrise Powerlink. It will help ensure that the Sunrise Powerlink, upon energization, is used for the purposes intended by the Commission (i.e. 33% RPS buildout) and supported by SDG&E in public comments. The 2009 Renewable RFO should be planned and conducted in a manner to incent viable renewable projects, i.e. those capable and prepared to interconnect upon energization of the transmission line (i.e. 2012) or soon thereafter to meet 2020 33% RPS goals. Importantly, IEP recommends (a) that the renewable RFO be conducted and completed with binding commitments with renewable resources by no later than December 31, 2009, (b) that the RFO include transparent consideration of project milestones and project viability measures, and (c) that the conduct of the renewable RFO be wholly consistent with Commission policy wherein the Commission has found that “all long-term procurement should occur via competitive procurements, rather than
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through preemptive actions by the IOU, except in truly extraordinary circumstances.” 1 Regarding transparent project milestones and viability measures, IEP recommends that the Commission direct the utility to work with the renewable development community and finalize the identification of such important measures to the Commission by March 2009 for inclusion in the proposed 2009 Renewable RFO. Finally, as a planning alternative and precaution in the unlikely event that SDG&E has not made significant progress by December 31, 2009 toward constructing and energizing the line by 2012, IEP suggests that the Commission consider third-party transmission construction alternatives. Given the importance of the Sunrise Powerlink for accessing Imperial Valley renewables as a means to achieving RPS goals, it would be unfortunate if needed transmission were not built in a timely manner by SDG&E, assuming third-party transmission developers may be ready and able to provide a timely and cost-effective alternative.
1
Decision (D.) 07-12-052, pp. 208-209 (emphasis in original).
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Respectfully submitted this 20th day of November, 2008 at San Francisco, California.
INDEPENDENT ENERGY PRODUCERS ASSOCIATION Steven Kelly Policy Director 1215 K Street, Suite 900 Sacramento, California 95814 Telephone: (916) 448-9499 Facsimile: (916) 448-0182
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CERTIFICATE OF SERVICE I, Melinda LaJaunie, certify that I have on this 20th day of November 2008 caused a copy of the foregoing COMMENTS OF THE INDEPENDENT ENERGY PRODUCERS ASSOCIATION ON COMMISSIONER GRUENEICH’S ALTERNATE PROPOSED DECISION (APD) to be served on all known parties to A.06-08-010 listed on the most recently updated service list available on the California Public Utilities Commission website, via email to those listed with email and via U.S. mail to those without email service. I also caused courtesy copies to be hand-delivered as follows: Commissioner Dian Grueneich California Public Utilities Commission State Building, Room 5207 505 Van Ness Avenue San Francisco, CA 94102-3214
ALJ Steven A. Weissman California Public Utilities Commission State Building, Room 5107 505 Van Ness Avenue San Francisco, CA 94102-3214
ALJ Jean Veith California Public Utilities Commission State Building, Room 5010 505 Van Ness Avenue San Francisco, CA 94102-3214 I declare under penalty of perjury that the foregoing is true and correct. Executed this 20th day of November 2008 at San Francisco, California. /s/ Melinda LaJaunie Melinda LaJaunie
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