NRG advances 508-MW Sun Valley gas project in the interconnection process

Southern California Edison filed with the Federal Energy Regulatory Commission the Sun Valley Project Tie-Line Facilities Agreement with Valle Del Sol Energy LLC (VDSE), which is developing a 507.5-MW, gas-fired project in California.

The documents submitted with this Feb. 10 filing include the agreement itself. VDSE had submitted an application to SCE to interconnect a 507.5-MW simple cycle combustion turbine facility named the Sun Valley Project, located in Menifee, California, to SCE’s Valley Substation and transmit energy to the California Independent System Operator-controlled grid. VDSE proposed a commercial operation date of March 31, 2019.

VDSE intends to engineer, procure, construct, own, operate, and maintain the Sun Valley Project and interconnect it to SCE’s 115-kV Valley Substation via two radial 115-kV generation tie-lines. During the course of performing the interconnection studies for the Sun Valley Project, SCE determined that it would need to construct and own the generation tie-lines from the Sun Valley Project to the Valley Substation 115-kV switchyard since such facilities would be located in SCE’s existing right-of-way.

Separately, SCE and VDSE have entered into a Standard Large Generator Interconnection Agreement (LGIA) to provide interconnection service and a Service Agreement for Wholesale Distribution Service to provide wholesale distribution service for the Sun Valley Project. SCE is filing the LGIA and Service Agreement concurrently with this filing.

A VDSE contact listed in the agreement is: Valle Del Sol Energy LLC, Scott Valentino, Vice President-Development, 5790 Fleet Street, Carlsbad, California 92008, Phone (760) 710-2145, Fax (760) 918-6780, Scott.Valentino@nrgenergy.com.

Valle Del Sol Energy told the California Energy Commission in a Dec. 1, 2014, report that it expected to receive an LGIA for signature by the end of this past year, which will preserve its project’s position in the interconnection queue. But the company told the California commission that the project faces continuing permitting difficulties associated with the unavailability within the South Coast Air Basin of emission offsets. Valle Del Sol said that it and its ultimate parent, NRG Energy (NYSE: NRG), continued 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 California commission in June 2014 agreed to suspend the approval proceeding for this project, with a mandate for the company to file a quarterly update. The proceeding has been suspended until June 30, 2015. As a result of an acquisition that closed in April 2014 of Edison Mission Energy assets, Valle Del Sol is an indirect wholly owned subsidiary of NRG Energy. The commission previously granted other suspensions of this proceeding before the ownership change.

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.