Southern California Ed terminates interconnect deal for NRG’s Sun Valley peaker

Southern California Edison on Feb. 26 filed with the Federal Energy Regulatory Commission a notice of cancellation for a Standard Large Generator Interconnection Agreement (LGIA) with the Valle Del Sol Energy LLC unit of NRG Energy (NYSE: NRG) that covered a defunct power project.

The LGIA sets forth the terms and conditions pursuant to which the utility would design, engineer, construct, own, operate, and maintain interconnection facilities, excluding two radial 115-kV subtransmission lines, required to interconnect the Sun Valley Project. The commission accepted the LGIA in March 2015.

Attached to the notice to FERC is a Jan. 19 letter from NRG saying it is giving up on this agreement and will “cease all activities” related to this project after the California Energy Commission dismissed a pending application for the project.

The terminated LGIA describes the project as: “All equipment and facilities comprising the Interconnection Customer’s 507.5 MW simple cycle combustion turbine Sun Valley generating facility, located south of the Distribution Provider’s Valley Substation and southwest of the intersection of Matthew Avenue and Menifee Road in Menifee, California, as disclosed by the Interconnection Customer in its Interconnection Request, as may have been amended during the Interconnection Study process. The Sun Valley generating facility consists of (i) five (5) 155.1 MVA G.E. Brush 445 generators with a total net output of 507.5 MW, with each generator interconnected to its own main step-up transformer described in Section 1(a)(i)2 of Appendix A, (ii) the associated infrastructure and step-up transformers, (iii) meters and metering equipment, and (iv) appurtenant equipment.”

The California Energy Commission, on the advice of its staff and over the protests of NRG Energy, had in October 2015 terminated the site certification proceedings for three long-stalled, gas-fired power projects, including this one. Commission staff said these applications had lingered too long in the system. NRG, the owner of all three projects, said that it was still trying to work out power sale agreements for the projects and asked for extra time. The rejected projects were:

  • San Gabriel Generating Station – In 2007, San Gabriel Generation LLC, currently a subsidiary of NRG Energy, filed for the San Gabriel Generating Station (SGGS). SGGS, as proposed, would be a 696-MW natural-gas-fired combined-cycle plant consisting of two combustion turbine generators (CTG), two supplementally fired heat-recovery steam generators (HRSG), one steam turbine generator (STG), and ancillary equipment sited within the existing 60-acre Etiwanda Generating Station property located in Rancho Cucamonga, San Bernardino County.
  • Sun Valley Project – In 2005, Valle del Sol Energy LLC submitted an application to construct and operate a simple-cycle (peaking) plant named the Sun Valley Project, located in Riverside County, California. It would be a nominal 500-MW simple-cycle plant consisting of five General Electric LMS100 natural gas-fired turbine generators.
  • Willow Pass Generating Station – The Energy Commission received the initial application for the Willow Pass Generating Station (WPGS) in 2008. WPGS, owned by NRG Energy and its NRG Willow Pass LLC affiliate, would consist of two power blocks, each containing one Siemens Flex Plant 10 combined-cycle unit located in the City of Pittsburg in Contra Costa County, California. The combined generating capacity of the two power blocks would be approximately 550 MW (net).
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.