Monday morning the CPUC held an “All-Party Meeting” regarding the proposed Oakley Generating Station. The meeting was called by CPUC Commissioner Sandoval to solicit answer to questions regarding the application for approval of the amended agreement between PG&E and Contra Costa Generating Station LLC for the purchase and sale of the Oakley Generating Station. The parties included PG&E, who were obviously in favor of the sale, and a number of opponents of the project.
This entire fact finding was being done prior to the Thursday, December 20 Public Utilities Commission meeting to determine the fate of the power plant.
The proposed Oakley Generating Station (Oakley) project is a 586 megawatt (MW) combined-cycle facility that would be located in Oakley, California. Pursuant to the amended purchase and sale agreement (PSA), Contra
Costa Generating Station LLC would construct and sell the Oakley project to Pacific Gas and Electric Company (PG&E), with a commercial on-line date of June 2016. The transaction would result in an annual revenue requirement of approximately $200 million to allow PG&E to recover the non-fuel costs of constructing and operating the project.
On Thursday’s agenda there are two proposed decisions for Oakley’s power plant. The first, proposed by Administrative Law Judge Yacknin denies the application. The second proposed by Commission President Peevey grants the application and approves the contract as reasonable and adopts a cost recovery mechanism. Needless to say Oakley representatives will be in San Francisco to support Commission President Peevey. We’re all hoping for an early Christmas present.
Testimony provided by PG&E summarizes our thoughts perfectly:
“The Oakley Project is a least-cost, best fit resource selected in a competitive solicitation that has numerous operational and environmental benefits that will ensure grid reliability to avoid what CAISO (California Independent System Operator’s) told the Federal Energy Regulatory Commission last week as an “imminent” reliability threat. Failing to approve or delaying approval of the Oakley Project will likely kill a fully permitted, highly efficient, locally supported resource that is already under construction”
“The evidence shows that the Oakley Project will benefit the State of California’s electrical system by providing peaking power and ancillary services during periods of high demand. The project will do so in the most fuel efficient manner practicable without creating adverse effects on energy supplied or resources. Furthermore, the project will contribute to regional electricity reserves”