Southern California Ed seeks approval on 225-MW geothermal contract

The California Public Utilities Commission at its March 26 meeting is due to decide on a resolution approving cost recovery for a long-term renewable energy power purchase agreement (PPA) between Southern California Edison (SCE) and Geysers Power Co. LLC.

SCE filed an advice letter in October 2014 requesting commission review and approval of a 10-year renewable energy PPA with Geysers. The PPA was executed through SCE’s 2013 renewable portfolio standard (RPS) solicitation.

The 225-MW existing geothermal project is located in Sonoma and Lake counties. Under the Geysers PPA, SCE is to begin purchasing generation from Geysers beginning June 1, 2017. The expected annual generation to be purchased from the project is 1,972 GigaWatt-hours (GWh). This generation could count towards SCE’s RPS requirements in Compliance Period 2017-2020.

SCE retained Merrimack Energy Group Inc. as the independent evaluator (IE) to oversee its 2013 RPS solicitation. In addition, Merrimack oversaw the negotiations with Geysers and evaluated the overall merits of the Geysers PPA. In the IE’s opinion, the Geysers PPA was reasonably negotiated with contract terms that taken as a whole appropriately protect the interests of SCE’s ratepayers. Overall, the IE agrees with SCE that the Geysers PPA merits commission approval.

Calpine Corp. (NYSE: CPN) said in its Feb. 13 earnings statement that it had signed this 225-MW deal for the Geysers facility, with the deal subject to California PUC approval.

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.