CPA Takes Parting Shots at Gov, Works to Continue Programs

As the final meeting of the soon-to-be-dissolved California Power Authority came to a close October 12, board members took Governor Arnold Schwarzenegger to task for his decision to shut down the agency. The sharp comments came after two hours of staid discussion aimed largely at keeping current activities on track after the agency closes down, now scheduled for October 31 or shortly thereafter. ?This is a policy choice that we think is wrong,? said Barbara Lloyd, who sits on the agency board on behalf of state treasurer Phil Angelides. ?It?s a policy choice that the administration took independently of the Legislature. So the administration must be held accountable for the success of [CPA] programs.? Don Vial, most senior of the three Power Authority board members, said that in the many years he?s been in public service?he has been a member and president of the California Public Utilities Commission and served on the Fair Political Practices Commission?Schwarzenegger?s bid to ax the agency is ?the most untimely? such move he can recall. Acting CPA chair Sunne McPeak chose to sit out the round of criticism, noting that the final gavel was a ?poignant moment.? Aside from her role as Power Authority chair, McPeak is the current secretary of the Business, Housing and Transportation Authority, appointed by the governor to that post in late 2003. One challenge still facing the CPA is which state organization will act in its stead with regard to finances. The law that created the Power Authority also created a CPA fund that will live on; consequently, a fiscal agent is needed to execute transactions into and out of that fund in support of continuing agency initiatives. According to Power Authority chief executive officer Laura Doll, the right choice had been thought to be the California Energy Commission, which last week voted to absorb the CPA?s authority to issue up to $5 billion in bonds ( Circuit , October 8, 2004). But the CEC would not be able to conduct power sales?along with the Department of Water Resources?under the Power Authority?s existing demand-response program, Doll said. The agency decided to look into whether the California Alternative Energy and Advanced Transportation Financing Authority?which has power to bankroll nontraditional energy projects?would be able to act as fiscal surrogate. California Power Authority staff also gave status updates on the agency?s various programs, including: Demand response: Consultant Kellan Fluckiger said this agency program signed up between 250 MW and 270 MW for summer 2004. Though the effort was considerably hampered by news of the Power Authority?s demise, he said, the CPA?s goal of building program participation to 500 MW for next summer can be achieved. The initiative now claims 24 companies and 160 meters, including Raley?s supermarkets, which recently came aboard with 34 sites at 25 kW each. The CPA voted to have Fluckiger continue to manage the effort over the next two years, though it remains undecided which agency will be responsible for it. Peaker plants: The Kings River Conservation District completed development of two peaker turbines totaling about 95 MW. Contractors are set to begin work on the facilities, near Fresno, and the units could be on line by June of next year. Meanwhile, the four peakers under development in San Francisco continue to await a home. The city has reached terms with Mirant on using the existing Potrero site but is looking at backup locations, given the company?s pending bankruptcy case. The city hopes to have the turbines operating by June 2006. To date, the CPA has helped the peaker proponents keep the projects moving forward. The peaking units were given to the state under the settlement it signed with the Williams Companies over alleged market manipulation during the energy crisis. Solar panels on state facilities: The CPA received only three bids for the agency?s solar-state program, under which solar photovoltaic companies would own assemblies on various buildings around the state and then sell the power back to California. Of those bids, only one proved valid?provided by East Coast?based SunEdison. The company agreed to erect PV panels at three of the seven sites tabbed by the Power Authority (all seven, if built out, would total about 2.3 MW of solar capacity). Pending environmental review, the agency is ready for construction to begin. The Department of General Services is poised to take over the program. Solar schools: The Energy Commission has agreed to administer the program, expected to yield 706 kW of capacity?about 23 kW per rooftop solar array?across 30 schools in 28 communities. A total of $2.25 million has been allotted for the initiative. In the waning moments of this week?s meeting, Doll praised agency board members for working as one throughout their tenure rather than slipping into the divisiveness that has plagued other state bodies. Doll, who frequently snapped photos during the final session, maintained that the CPA?s solidarity ?should be a model for the state.?

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CPA Takes Parting Shots at Gov, Works to Continue Programs

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