November 23, 2024
NRG Signals Pull-out on Proposed Puente Plant
NRG Energy asked the California Energy Commission to suspend its review of the Puente Power Project, a proposed 262-MW gas-fired plant in Oxnard.

By Robert Mullin

NRG Energy on Monday asked the California Energy Commission to suspend its review of a proposed 262-MW gas-fired plant in Oxnard, likely closing the book on a project that met with stiff resistance from community and environmental groups.

The company’s request came after Commissioners Janea Scott and Karen Douglas earlier this month issued what they acknowledged was an “unusual” notice recommending denial of the Puente Power Project. They wrote that it would be “inconsistent with several laws, ordinances, regulations or standards and will create significant unmitigable environmental effects.” (See CEC Members Recommend No-Go for Puente Plant.) The commission is responsible for issuing construction and operating permits for new generating plants.

Scott and Douglas, who together constituted the committee preparing the commission’s decision on Puente, said they made their recommendation so early in the process because they saw a need to study alternatives to the plant after CAISO filed comments contending that the economic feasibility of preferred — or non-emitting — resources could only be established through a new request for offers. While Southern California Edison selected Puente through a standard procurement process, CAISO pointed out that costs for preferred resources have since declined enough to warrant a new RFO. The ISO also noted that cost should not be the only factor driving the decision.

“An economically feasible option need not be the least expensive option, especially given the environmental and performance issues that are unique to each portfolio,” the ISO said.

The commission also received hundreds of comments opposing construction of the plant.

In its Oct. 16 filing with the commission, NRG said it is still considering whether to fully withdraw its application for certification (AFC) for Puente.

“Granting this motion [to suspend the proceedings] will ensure effective use of resources of the committee and the parties to these proceedings in the event that the applicant determines to withdraw the AFC,” NRG said.

CAISO NRG Puente
The Puente plant would have been built on the site of the Mandalay Generating Station in Oxnard (shown), where NRG plans to shut down two existing steam turbine units to comply with California’s once-through cooling restrictions. | NRG

The company proposed to build the plant on the site of its Mandalay Generating Station, where it will shut down two existing gas-fired steam turbine units that don’t comply with California’s upcoming regulations restricting once-through cooling. About 2,000 MW of generation in the area is due to retire by 2020 because of the regulations.

The fast-ramping Puente plant would have been capable of reaching more than 95% of its capacity within 10 minutes, helping to integrate renewable resources and ensure reliability in the state’s Ventura/Moorpark subarea, a load pocket that imports much of its electricity through a single substation, the company has said.

The California Public Utilities Commission has already authorized SCE to enter into a long-term resource adequacy contract with the plant, which was slated to begin operating in 2020.

California Agencies & LegislatureGeneration

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