Pacific Gas and Electric terminates interconnect deal for 575-MW project

Pacific Gas and Electric (PG&E) on May 12 filed a notice of termination with the Federal Energy Regulatory Commission of a Large Generator Interconnection Agreement with the California Independent System Operator and Stockton Generation LLC.

The LGIA among PG&E, the CAISO and Stockton Generation for Stockton Generation’s planned 575-MW gas turbine plant in San Joaquin County, California, was executed in May 2010.

“On April 6, 2015, PG&E notified Stockton Generation via US mail that its gas turbine project was in default under Article 17.1.1 (Default) of its LGIA because Stockton Generation had failed to provide the financial securities needed to move forward with the construction and operation of the project,” said PG&E. “Stockton Generation was notified by PG&E that it had thirty days to cure the default condition pursuant to Article 17.1.1 of the LGIA.

“On April 13, 2015, Stockton Generation provided PG&E with written notice, via email, that it would not cure the Default. Consequently, by letter dated April 16, 2015, PG&E notified Stockton Generation that its LGIA for the gas turbine project, SA 136, would be terminated, pursuant to Article 17.1.2 of the LGIA. Article 17.1.2 of the LGIA permits either party to terminate the LGIA after a default pursuant to Article 17.1.1.

“Because Stockton Generation has not formally consented to the subject termination, PG&E makes this LGIA termination filing on a unilateral basis in accordance with the terms of the LGIA and, as described below, FERC Order No. 2001.

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.