Pacific Gas & Electric seeks PUC nod on two power deals with Dynegy Moss Landing

Pacific Gas & Electric is requesting that the California Public Utilities Commission approve, at its Jan. 29 meeting, a proposed resource adequacy (RA) capacity agreements with Dynegy Moss Landing LLC for the period July-September 2017 and also for the full 2017 calendar year.

These contracts arose from PG&E’s 2014 RA Intermediate-Term Request for Offers (ITRFO), a competitive solicitation seeking RA benefits from 2015 through 2018.

Said a resolution for the Jan. 29 commission meeting written by PUC staff: “The Dynegy Contracts will provide PG&E with System RA benefits from Moss Landing 1, an existing natural gas-fired generating unit. The unit is in the NP-15 region and is not in a Local Capacity Area. Moss Landing 1 is subject to the State Water Resources Control Board (‘SWRCB’) once-through cooling (‘OTC’) policy and has a SWRBC OTC compliance deadline of December 31, 2017. The Dynegy Summer Contract is for 300 megawatts (‘MW’) of System RA capacity, for a term beginning on July 1, 2017 and continuing through September 30, 2017. The Dynegy Full-Year Contract is for 75 MW of System RA capacity, for a term beginning on January 1, 2017 and continuing through December 31, 2017. The Dynegy Contracts do not include Local RA attributes, nor do they include any energy tolling capacity.”

This capacity is less than the full Net Qualifying Capacity (NQC) of Moss Landing 1, which is 510 MW, the resolution noted.

“The SWRCB OTC compliance deadline for all Moss Landing units is December 31, 2017,” the resolution said. “The Dynegy Summer Contract ends on September 30, 2017, and the Dynegy Full-Year Contract ends on December 31, 2017, on the day of the OTC deadline. According to PG&E, Dynegy has stated that these Contracts will not delay compliance by the December 31, 2017 deadline, nor will they delay or prevent Moss Landing Energy Facility’s compliance with any current or interim requirements prior to that final compliance deadline. Moreover, PG&E asserts that the Dynegy Contracts will facilitate compliance with OTC policy by providing funding for ‘baseline impingement and entrainment studies that are required to be completed prior to the final compliance date,’ and for ‘the evaluation and testing of alternative measures, including both operational and technological controls, which will enable the plant to achieve compliance with the SWRCB OTC policy impingement and entrainment reduction standards by the final compliance deadline.’ While the Dynegy Full-Year Contract ends on the same date as the SWRCB OTC compliance deadline, we nevertheless find PG&E compliant with this requirement because the Dynegy Contracts will not delay compliance, and will provide funding to facilitate timely compliance.”

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.