SDG&E seeks 500 MW of baseload, 200 MW in peakers
- From: dave.walters@xxxxxxxxxxx
- Date: 14 Mar 2007 11:43:52 -0700
[No slowing down for natural gas: one has to ask, if "alternative
energy" like PV and wind is so good...why are they not looking for
it?--David hint: "baseload and peaking"]
SDG&E seeks 500 MW of baseload, 200 MW in peakers
San Diego Gas and Electric Co. is looking for bids for a 500-MW
baseload generating plant and another 200 MW in peaking units. The
Sempra Energy subsidiary says it is facing loss of some 2,000 MW of
generation, including major contracts with the California Department
of Water Resources that resulted from the 2000-2001 California power
crisis.
Michael Niggli, SDG&E chief operating officer, told the San Diego
Union-Tribune, "In the next four years, we will lose 2,000 MW of
supply. That is not potential loss. It is going to be gone." In
addition to the loss of supply, Niggli noted that SDG&E's demand is
growing by at least 100 MW annually.
SDG&E said in its request for offers that it will also consider
acquiring the 480-MW El Dorado Energy combined-cycle gas-fired plant
near Boulder City, Nev., now owned by another Sempra subsidiary. SDG&E
has an option to buy the plant at book value in 2011, as part of a
settlement between Sempra and state agencies regarding natural gas
prices the utility charged during the power crisis. Sempra agreed to
sell the six-year-old El Dorado plant to SDG&E at a discount to settle
charges that that parent company gouged customers during the power
crisis.
The California Public Utilities Commission has estimated that the book
value of El Dorado is $180 million, which could save the utility's
customers more than $100 million compared to the cost of building a
new baseload plant.
SDG&E noted that the current request for offers is in addition to the
planned $1.3 billion, 1,000-MW Sunrise Powerlink transmission project
designed to move geothermal power from the Imperial Valley to San
Diego. Both the power line and the new plants will required CPUC
approval.
Michael Shames, head of the San Diego-based Utility Consumers' Action
Network, told the Union-Tribune, "I believe SDG&E has exaggerated our
current needs" and wants to "embark upon a dramatic overbuilding
scheme." Shames said he is particularly concerned about the
transmission project, which is drawing opposition from local community
and environmental groups.
According to the newspaper, likely bidders for the baseload project
include NRG Energy and Enpex Corp. New Jersey-based NRG and Enpex
Corp., located in San Diego, are partners in a 750-MW combined-cycle
gas-fired generating project at the Miramar Marine Corps Air Station.
LS Power is another likely bidder, according to the newspaper.
.
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