[CEM 975 / May 9, 2008]

Legislature Calls Foul on CPUC Over Climate Institute

Over the past two weeks, the California Public Utilities Commission has endured the wrath of state senators crying foul over what they see as the agency's end runs around legislative intent. At a budget hearing Monday, senators voted to punish the CPUC by cutting $60 million from its administrative budget for "illegally" creating a $60 million-per-year budget, over 10 years, for a climate-research institute. Yet CPUC executives exuded conciliation, saying they welcomed talks with budget negotiators to "get on the same page" as the Senate, which is fiercely scrutinizing budgets of climate-related items.

Cal-ISO Finds Retiring Once-Through-Cooling Plants Affects Entire Grid; SoCal Can Afford Few Losses

Southern California maintained its celebrity status as a power-challenged area as grid operators concluded it is in the weakest position to retire old, once-through-cooling plants. In unveiling preliminary results May 1 of a once-through-cooling study, the California Independent System Operator found under conservative scenarios only 656 MW out of 13,419 MW of SoCal OTC facilities could retire within the next five years. The pressure is on for the Cal-ISO to make its data available as the state water board plans to adopt new once-through-cooling rules by December. Also this week, the Cal-ISO's Market Surveillance Committee supported integrated balancing authority areas reform.

GHG Model Outlines Costs, Rate Changes in Various Cap-and-Trade Schemes

Examples of different allocation and auction scenarios for greenhouse-gas emissions allowances compare the possible costs and rate changes of each, under a cap-and-trade system covering the electricity sector. Complying with AB 32 could cost two California utilities more than $15 billion by 2020. A California Public Utilities Commission-contracted firm released this week sample results from specific scenarios. Users of a GHG calculator can change the load forecasts, efficiency targets, carbon prices and other data to gauge results.

Big Solar Projects Face Challenges With Tax Credits, Transmission, Technology, Industry Says

Technology, transmission and public policy can help large-scale solar projects advance faster, industry and utility leaders said Wednesday during the second round of the Berkeley-Stanford CleanTech Conference series. Companies touted air-filled concentrated solar, close-to-load distribution that can withstand strong winds and photovoltaic installations on leased commercial and industrial roofs. Lawyers and financial leaders echoed calls for supportive policies and a renewed federal investment tax credit.

Also In California Energy Markets This Week . . .

• Sempra Earnings Solid as PG&E, Edison Both Fall
• PNM Sells Part of Stake in Palo Verde Nuclear Plant
• WESTCARB Gets Funding Boost; Tax-Credit Deal?
• Quick Bites: TURN Wants PCT Pilot Tossed

...And Much More!

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