California PUC reviews new valuation data for three First Solar projects

Up for review at the California Public Utilities Commission’s Dec. 1 meeting is a resolution that grants approval of a Southern California Edison supplemental advice letter regarding three renewable power purchase agreements with Rosamond Solar, Willow Springs Solar and Sunshine Valley Solar.

This resolution approves the supplemental advice letter that corrects the valuation methodology used to evaluate these three long-term renewable energy power purchase agreements between SCE and First Solar for these projects.

On Sept. 15, had approved the contracts. The commission determined the merits of the PPAs by using certain evaluation information that has now been corrected. “This Resolution accepts SCE’s revised valuation data that was used to evaluate the First Solar PPAs. Specifically, SCE’s revisions modify how SCE evaluated congestion costs for projects submitted to the SCE’s 2014 large-scale solicitation. These changes are relevant because adjusting the way that energy benefits and congestion costs are valued directly impacts the net market value associated with the projects. Having said that, the amended evaluation information that SCE submitted to substantiate the Rosamond Solar, Willow Springs Solar, and Sunshine Valley Solar power purchase agreements is immaterial in the context of the overall evaluation of the projects, because it does not impact the First Solar PPAs’ merits for Commission approval. The First Solar PPAs have not been amended or modified and PPAs remain consistent with SCE’s 2014 RPS Procurement Plan (2014 RPS Plan), which the Commission approved in Decision (D.) 14-11-042. Additionally, the first solar PPAs remain reasonably valued.”

The projects are:

  • Rosamond Solar, solar photovoltaic (PV), 160 MW, commercial operation target of Jan. 1, 2020, 15-year PPA term, located Rosamond, California;
  • Willow Springs Solar, solar PV, 108 MW, commercial operation Jan. 1, 2020, 15-year PPA term, Rosamond, California; and
  • Sunshine Valley Solar, solar PV, 104 MW, commercial operation Jan. 1, 2020, 15-year PPA term, Armargosa Valley, Nevada.

The Sunshine Valley Solar facilities will interconnect at Valley Electric Association’s 138-kV Valley Substation. The Rosamond Solar and Willow Springs Solar facilities will interconnect at SCE’s Whirlwind Substation.

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.