Valle del Sol Energy LLC told the California Energy Commission on Jan. 6 that the status of a shelved 500-MW gas project hangs right now on the purchase of Edison Mission Energy and its related assets, including this project, by NRG Energy (NYSE: NRG).
Edison Mission Energy and related companies sought Chapter 11 bankruptcy protection in December 2012. Last fall, NRG worked out a deal to buy Edison Mission Energy, with that deal still awaiting bankruptcy court approval.
In the meantime, the California commission on June 2013 agreed to continue a hold first put on in 2011 of the review process for Valle del Sol Energy’s 500-MW Sun Valley Energy Project. The Sun Valley Energy Project (SVEP) is a natural gas-fired peaker that will be located in the City of Menifee, Calif. The site is located on 50 acres of farmland 30 yards southwest of the Valley Substation and will feature five General Electric LMS-100 gas turbines.
Valle del Sol Energy told the commission in the Jan. 6 update about the pending NRG buy of Edison Mission Energy and various assets, including this project, and said that the deal is likely to close in the first quarter of 2014. It didn’t say specifically whether it would ask for the commission review process to resume after that point.
In December 2005, Valle del Sol Energy, a wholly-owned subsidiary of Edison Mission Energy, submitted an Application for Certification (AFC) to construct and operate this project. The project is expected to have an annual capacity factor of 20% to 40%, depending on weather-related customer demand, load growth, hydroelectric supplies, generating unit retirements and replacements, the level of generating unit and transmission outages, and other factors.
The plant would use reclaimed water for cooling and other power plant processes and for site landscape irrigation. It would be connected to Southern California Edison‘s (SCE) electrical system at the existing Valley Substation. Natural gas would be supplied via a 750-foot-long pipeline within the SVEP parcel to a connection with one or more Southern California Gas high-pressure gas pipelines located at Menifee Road east of the project site.