FERC approves sharing of transmission by California solar projects

The Federal Energy Regulatory Commission on June 26 accepted a Co-Tenancy and Shared Use Agreement among CSOLAR IV South LLC, Imperial Valley Solar 1 LLC (IVS-1) and Imperial Valley Solar LLC (IVS) (collectively called the Co-Tenants).

On May 28, CSOLAR IV South had filed this agreement with the commission. CSOLAR is an exempt wholesale generator and is authorized to sell power at market-based rates. CSOLAR is owned by Tenaska CSOLAR South Holdings LLC (99%) and Tenaska CSOLAR South LLC (1%).

CSOLAR owns and is developing the first phase of the Imperial Solar Energy Center Project (CSOLAR South Project), a ground-mounted photovoltaic system to be located in El Centro, Calif. The 130 MW output of the CSOLAR South Project is fully subscribed under a 25-year power purchase agreement with San Diego Gas & Electric (SDG&E). The CSOLAR South Project will interconnect to transmission facilities owned by SDG&E and operated by the California Independent System Operator (CAISO).

IVS-1, together with IVS, is developing the first phase of a 600-MW photovoltaic solar facility located in Imperial County (called the IVS Imperial Project). The IVS Imperial Project will interconnect to the CAISO-controlled grid at the Imperial Valley Substation, which is owned and operated by SDG&E. CSOLAR told FERC that the 200-MW first phase of the IVS Imperial Project, owned by IVS-1, is currently under construction, and subsequent phases to be owned by other Imperial Valley Solar companies will also be developed.

The Co-Tenancy Agreement provides for the shared construction, ownership, and use by the Co-Tenants of an above-ground 230-kV double circuit radial generator tie-line interconnection facility and related facilities for their respective solar facilities. CSOLAR said that both it and IVS-1 have closed financing on their respective solar facilities, and that IVS-1 will begin to use a portion of the shared facilities, under the terms and conditions of the instant agreement, for the first time beginning on or about July 1, 2013, when IVS-1 commences generating test power.

Imperial Valley Solar 2 LLC will own the 150-MW second phase of the IVS Imperial Project; Imperial Valley Solar 3 LLC will own the 150-MW third phase of the IVS Imperial Project; and Imperial Valley Solar 4 LLC will own the 100-MW fourth phase of the IVS Imperial Project.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.