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California Energy Markets / This Week
[CEM 1297 / August 22, 2014]
By 2024, Grid May Require Thousands of Megawatts of Flexible Capacity
Cal-ISO models show a need for thousands of megawatts of flexible capacity as California attempts to reach and exceed the 33 percent renewables portfolio standard. In one 40 percent RPS scenario, curtailments reach 4,637 GWh a year-but Cal-ISO said curtailments of such magnitude likely won't happen and rather indicate a need for grid flexibility. One question, however, is how much renewable overgeneration makes it worthwhile to invest in new capacity, such as energy storage, versus curtailing renewables.
Appeals Court Invalidates EPA Permit for Avenal Energy Project
A permit issued by the U.S. Environmental Protection Agency for the 600 MW Avenal Energy Project is illegal because it did not comply with air-quality regulations that were in effect at the time, a federal appeals court has ruled. The court, siding with environmental and social-justice groups who sued EPA over the permit for the natural gas-fired power plant, said the agency exceeded its authority under the Clean Air Act.
PG&E Residential Bills Could Jump by 30 Percent After Rate-Case Double Whammy
Pacific Gas & Electric wants a three-year cumulative revenue-requirement increase of about $2 billion in its gas transmission and storage case, which follows a $2.4 billion cumulative general rate increase. Consumer groups warn that the combined increases from the two cases will overburden ratepayers-who already have trouble paying their bills, as seen from increasing numbers of utility-service shutoffs.
Mammoth Water District Files Lawsuit to Stop Ormat Geothermal Project
The Mammoth Community Water District has filed a lawsuit that seeks to halt the 33 MW Casa Diablo IV Geothermal Development Project, proposed by Ormat Technologies. The suit asserts that the environmental impact report completed for the project, to be located near Mammoth Lakes, is flawed because it does not adequately address potential impacts to groundwater supplies.
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