Solar developer disputes Pacific Gas and Electric interconnect termination

El Peco Energy LLC on Jan. 14 protested to the Federal Energy Regulatory Commission over a Pacific Gas and Electric (PG&E) notice to terminate a Small Generator Interconnection Agreement (SGIA).

The SGIA is among PG&E, El Peco Energy and the California Independent System Operator (CAISO). It covers El Peco Energy’s solar PV generating facility in Merced County, Calif. That facility was included in PG&E’s Electric Quarterly Report (EQR) for the fourth quarter 2012.

In August 2013, PG&E told FERC that it notified El Peco Energy that its solar PV generating project was in default under Section 7.6 of its SGIA because El Peco Energy had failed to provide the financial securities needed to move forward with the construction and operation of the facility. El Peco disputed PG&E’s request for financial securities. Consequently, by letter dated Dec. 23, 2013, PG&E notified El Peco Energy that the SGIA would be terminated.

In its Jan. 14 response, El Peco Energy said the commission should reject PG&E’s request to terminate the SGIA for two reasons.

  • First, PG&E’s August  2013 Notice of Breach to El Peco is defective and inconsistent with the terms and conditions of the SGIA. The project developer said no financial security is due to PG&E under the terms of the SGIA, PG&E’s refusal to extend the SGIA’s milestones is a breach of the SGIA, and PG&E’s security posting request is invalid under any circumstances.
  • Second, under the provisions of these agreements, El Peco on Dec. 16, 2013, notified the parties that it has formally suspended work under the SGIA.

Attached correspondence shows that there was a prior agreement to extend the in-service deadline for this project by 14 months, to Feb. 15, 2016.

The project contact is: Dennis Lenahan,
 Chief Executive Officer,
 El Peco Energy LLC,
 10442 Road 21,
 Madera, CA 93637
, Tel: 415-860-0514, 

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.