AES Huntington Beach gets RMR extension for California units

AES Huntington Beach LLC (AESHB) on Oct. 21 filed with the Federal Energy Regulatory Commission its update on a Reliability Must-Run Agreement with the California Independent System Operator for part of its gas-fired power plant in California.

The agreement covers Huntington Beach Generating Station Units 3 and 4 (HB 3 & 4). AESHB submitted this annual filing under the RMR Agreement in response to CAISO’s notice of extension for the 2015 Contract Year. AESHB requested that the commission permit the proposed Contract Service Limits and payments for the ensuing 2015 Contract Year to go into effect as of Jan. 1, 2015.

AESHB currently owns and operates part of and leases and operates part of the Huntington Beach Generating Station. AESHB is an indirect, wholly-owned subsidiary of AES Corp. (NYSE: AES). AESHB currently operates the Huntington Beach Generating Station, a natural gas-fired facility located in the city of Huntington Beach within the balancing authority areas operated by CAISO.

Under the RMR Agreement previously approved by the commission in a 2013 case, AESHB collects a cost-of-service rate in exchange for operating two synchronous condensers necessary to provide voltage support in the Los Angeles Basin and San Diego/Imperial Valley local areas that is critically needed as the result of the unexpected retirement of San Onofre Nuclear Generating Station Units 2 and 3. The RMR Agreement provides CAISO the ability to dispatch HB 3 & 4 to provide voltage support when required by CAISO for local reliability.

By letter dated Sept. 24, CAISO gave AESHB notice to extend the term of the RMR Agreement for an additional calendar year, through Dec. 31, 2015.

A company contact is: Weikko Wirta, Plant Manager, AES Huntington Beach LLC, 21730 Newland Street, Huntington Beach, CA 92646, Tel: 714-374-1421, Fax: 714-374-1495, E-Mail: Weikko.Wirta@aes.com.

California commission reviews plan for plant repowering

Incidentally, on Oct. 9 the Huntington Beach Energy Project Committee handling the California Energy Commission review of a proposed repowering project issued its Revised Presiding Member’s Proposed Decision (RPMPD) on the Huntington Beach Energy Project (HBEP). The committee assigned to conduct these proceedings, made up of two commissioners, will hold two Closed Session Committee Conferences on the RPMPD on Oct. 22 and Oct. 27 in Sacramento. The full Energy Commission will consider the proposed decision, the committee recommendations, and any further matters on Oct. 29 in Sacramento.

In June 2012, AES Southland Development LLC, which is a unit of AES Corp., submitted an Application for Certification (AFC) on the HBEP, a natural-gas-fired, combined cycle and air-cooled facility located in the city of Huntington Beach, Orange County. The HBEP would be constructed within the existing footprint of the still-operating Huntington Beach Generation Station (HBGS). HBEP construction will require the removal of the existing HGBS Units 1, 2, and 5. HBGS Units 3 and 4 were licensed through the Energy Commission and demolition of these units is authorized under that license and will proceed irrespective of the HBEP.

Effective in October 2012, HBGS Units 3 and 4 ceased commercial operation and their capacity credits were transferred to the Walnut Creek Energy Park, a 500-MW generating facility located in City of Industry, California. In September 2012, CAISO approved the must-run contract on Units 3 and 4, and they were temporarily returned to service, which was possible because Walnut Creek had not yet used the capacity credits. In December 2012, the commission approved conversion of Units 3 and 4 to synchronous condensers to provide voltage support to southern Orange County and San Diego. This voltage support was required because of the unavailability of San Onofre for the summer of 2013 and thereafter. During construction of the HBEP project, Units 3 and 4 would continue to provide voltage support through the synchronous condensers. Upon demolition of Units 3 and 4, the synchronous condensers would be taken out of service.

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.