San Diego Gas terminates interconnect deal for Bull Moose biomass project

San Diego Gas & Electric (SDG&E) on Sept. 16 filed with the Federal Energy Regulatory Commission a notice of cancellation of a Standard Large Generator Interconnection Agreement with Bull Moose Energy LLC (BME) and the California Independent System Operator.

That agreement had been entered into in January 2010 and amended in September 2011.

In May 2006, CAISO received a request to interconnect BME’s proposed Otay Mesa Biomass Facility to the CAISO-controlled grid at SDG&E’s Border Substation. The project was to have a total maximum net output of 27 MW with an In-Service Date of July 1, 2008, and a Commercial Operation Date of Dec. 1, 2008.

In March 2015, CAISO notified BME of the need for an Amended Interconnection Study for the project due to the outdated vintage of the original cost estimates in the Interconnection Facilities Study report, issued in 2008. After CAISO received no response, SDG&E in late June 2015 notified BME of the utility’s intent to exercise its rights to declare a default and terminate the agreement, unless BME took the necessary action in response to CAISO’s notice.

Ultimately, BME agreed to the performance of an Amended Interconnection Facilities Study, and such study was performed, said the utility. CAISO provided BME with the amended study in September 2015. The Amended Interconnection Facilities Study identified updated costs for inclusion in a draft amendment to the LGIA, which CAISO tendered to BME in October 2015. At that time, CAISO indicated that satisfaction of BME’s In-Service Date (which by then had been moved to April 30, 2016) required execution of the amendment by Thanksgiving of 2015.

Said SDG&E: “In light of BME’s continuing unwillingness to execute the tendered amendment (and, indeed, even to engage in meaningful negotiations that would lead to an executed amendment), in March 2016, SDG&E notified BME that it would be afforded one last opportunity to cure its breach of the Agreement. SDG&E stated that the breach could be cured by either: (a) withdrawing BME’s interconnection request; or, (b) providing both CAISO and SDG&E with BME’s edits to the draft amendment tendered on October 30, 2015, including a revised In-Service Date. BME has not taken either action.”

A listed project contact is: Bull Moose Energy LLC, Attn: Mr. Rock Swanson, P.O. Box 231501, Encinitas, CA 92023.

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.