CEC Delivers Renewables Accounting, but Nowhere to Send Checks

New renewables facilities now have most of the i?s dotted on potential subsidies through the California Energy Commission since it approved a second phase of its renewables plan. However, those subsidy checks won?t be in the mail for quite awhile. ?Everyone?s scrambling to create these rules, but there haven?t been any auctions to even test whether it works,? said Steven Kelly, Independent Energy Producers policy director. ?And it?s not likely there will be any until the first quarter of 2004.? He added that Southern California Edison is saying it?s already met its renewables goal, and thus the utility contends it will not have to hold an auction for new supplies. Then there is Pacific Gas & Electric. It ?doesn?t have to conduct any procurement until they?re creditworthy,? Kelly added. In its October 8 meeting, with little fanfare, the commission approved detailed implementation items in the renewables plan?such as a new accounting system certifying that the renewables projects are doing what is required and getting the checks to the developers. Certification processes still need to be worked out for a few types of projects, such as small hydro and biomass, as well as a means to measure incremental geothermal resources. Also in the next phase of implementing the renewables plan will be resource diversity, competitive sufficiency, and whether distributed generation qualifies for the subsidies. The commission also allowed an oil company?s cogeneration project a couple of more weeks before it presents its case to the board. The second of two 51 MW Valero Cogeneration plants was on expedited review, but the company did not have all its data together for commission response this week, according to CEC spokesperson Rob Schlichting. On another matter, the commission refused public participants? requests to reopen the decision to allow building on Calpine?s East Altamont plant. The commission had already required the 1,100 MW plant to use recycled water for cooling and to spend $1 million to reduce air-pollution impacts.

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CEC Delivers Renewables Accounting, but Nowhere to Send Checks

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