California PUC looks at reworked power contract for gas-fired cogen

At its Dec. 4 meeting, the California Public Utilities Commission will be looking at a proposed amendment of a San Diego Gas and Electric power purchase agreement with Oceanside Refrigeration/Goal Line LP.

Under this change, Goal Line’s combined heat and power (CHP) facility will be converted to a dispatchable Utility Prescheduled Facility under the QF/CHP Settlement. This means SDG&E may count 49.9 MW of capacity and 6,218 metric tons of greenhouse gas (GHG) reduction toward its respective CHP Settlement targets. The Goal Line CHP facility is currently under contract to deliver “must-take” power.

Located in San Diego County, Goal Line has operated as a Qualifying Facility (QF) supplying electricity to SDG&E and steam to a nearby ice skating rink since the 1990s. The facility consists of a natural gas-fired combustion turbine and a heat recovery steam generator (HRSG). The combustion turbine has a nameplate capacity of 42 MW, and HRSG-generated steam powers a 10.2 MW generator. The generator is used to power compressors for the ice rink, with a backup boiler for when the CHP generator is not operating. Under the amended PPA, Goal Line is expected to operate less often; accordingly, the amended PPA stipulates Goal Line will install a new gas line for the backup boiler.

In December 2010, the commission adopted the Qualifying Facility and Combined Heat and Power Program Settlement Agreement, which resolved a number of longstanding issues regarding the contractual obligations and procurement options for facilities operating under legacy and qualifying facility contracts. The settlement establishes MW procurement targets and GHG Emissions Reduction Targets that California’s investor-owned utilities (IOUs) are required to meet by entering into contracts with eligible combined heat and power facilities. The three large electric IOUs must procure a minimum of 3,000 MW of CHP and reduce GHG emissions consistent with the California Air Resources Board Scoping Plan, currently set at 4.8 million metric tons (MMT) by the end of 2020. For the initial program period, the settlement allocates to SDG&E a total of 211 MW of the procurement target, with the 49.9 MW from the Goal Line facility to count against that 211-MW target.

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.