NRG makes progress on interconnect for 500-MW project, but…

Valle Del Sol Energy LLC expects to receive a Generator Interconnection Agreement for signature by the end of the year, which will preserve its 500-MW project’s position in the interconnection queue.

The project faces continuing permitting difficulties associated with the unavailability within the South Coast Air Basin of emission offsets from the market that are needed to satisfy applicable South Coast Air Quality Management District rules, the company told the California Energy Commission in a Dec. 1 update. Valle Del Sol said that it and its ultimate parent, NRG Energy (NYSE: NRG), continue to look for solutions to address the lack of available offsets, and for contracting opportunities that would support active development of the Sun Valley Project.

The commission on June 30 agreed to suspend the approval proceeding for this project, with a mandate for the company to file a quarterly update report. The proceeding has been suspended until June 30, 2015. The Sun Valley Project, a 500-MW, natural gas-fired peaking plant to be located in the City of Menifee, California within the jurisdiction of the South Coast Air Quality Management District.

As a result of an acquisition that closed in April 2014 of Edison Mission Energy assets, Valle Del Sol is now an indirect wholly owned subsidiary of NRG Energy. The commission previously granted other suspensions of this proceeding before the ownership change.

A project contact is: Sean P. Beatty, Regional General Counsel-West, NRG Energy Inc., 696 West 10th Street, Pittsburg, CA 94565, Telephone: (925) 427-3483, sean.beatty@nrgenergy.com.

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.