Pio Pico Energy Center LLC, Sunshine Gas Producers LLC and Panoche Energy Center LLC on June 29 requested that the Federal Energy Regulatory Commission factor the imminent start of Pio Pico’s 318-MW project in California into their market-based rate authority calculation.
The Pio Pico facility is an approximately 318-MW, gas-fired, simple-cycle facility located in Otay Mesa, an unincorporated area of San Diego County, California, about 15 miles southeast of downtown San Diego. The Pio Pico facility is interconnected to San Diego Gas & Electric (SDG&E) whose transmission system is operated by the California ISO.
Pio Pico expects its facility to be commercially operational by early July 2016. In 2011, Pio Pico entered into a 20-year Power Purchase Tolling Agreement, as amended, with SDG&E (the “PPTA”) for approximately 318 MW of electric capacity. Among other things, the PPTA provides for an “Expected Initial Delivery Date” of June 1, 2017, and extends for a period of 25 years. For a period of several months (the “Pre-PPTA Period”), the facility is required to be operational but the facility’s output is to be sold and marketed in the wholesale energy and capacity markets, during that limited Pre-PPTA Period only. Following that preliminary period, all deliveries must be made to SDG&E exclusively.
During that Pre-PPTA Period, Pio Pico will procure the fuel necessary for operations. During the Delivery Period, SDG&E will provide the natural gas required as fuel to operate the facility, and will purchase all of the electric capacity and energy generated by the facility and associated ancillary services and environmental attributes.