Edison Renewables Contracts Boost Green Supplies by 2.5 Percent

Many months after soliciting bids, Southern California Edison finally submitted six renewables projects to the California Public Utilities Commission for approval March 9. If the projects were built to their maximum capacity, they would contribute about 2.5 percent to the utility?s total portfolio and add 16 percent to the current renewables portion. The utility estimates that it will meet the state?s expected 2010 renewables requirement of 20 percent as early as 2008. If existing contracts do not expire in the next five years, the new contracts could push the utility past the renewables portfolio standard?s 20 percent green mandate. Over Edison?s objections, the California Energy Commission is pushing the utility to go beyond the state requirement?to reach 25 percent of its portfolio in green power by 2010 and 30 percent by 2015 ( Circuit , Nov. 5, 2004). ?We will be doing more procurement and working on existing contracts? to meet or exceed the standard?s goals, said Kevin Payne, Edison director of QF resources. The renewables portfolio standard requires that one-fifth of utilities? power portfolios be green by 2017. Edison has maintained that it is already ahead of the utility pack in its ability to meet the state renewables requirement. Payne said current contracts that now contribute more than 2,500 MW don?t necessarily have short expirations and could help meet the renewables standard in five years. ?It?s a good start,? said V. John White, executive director of the Center for Energy Efficiency and Renewable Technologies. But, he added, ?it?s 10 years late.? The contracts range from 15 to 20 years with a minimum build-out of 141.5 MW and a maximum of 427.5 MW. They include a minimum 99 MW of wind, 12.5 MW of biomass, and 30 MW of geothermal. The contract price per megawatt-hour was unavailable. However, the largest of the contracts seeks a maximum of 120 MW from Western Wind Energy that would produce gross annual revenues for Western Wind of between $24.2 million and $28.6 million. The lack of new transmission lines from the Tehachapi wind development area is not expected to affect these contracts. But the utility?s anticipated push to build new power lines paid for by ratepayers is predicted to affect future solicitations and projects, according to Payne. A proposal to finance new transmission for renewables projects was expected to be filed at the Federal Energy Regulatory Commission in late January but is still not ready, according to Edison. Edison?s sister company Edison Capital filed documents with the Securities & Exchange Commission March 9 that noted it intends to grow its existing renewables portfolio and invest at least $23 million in wind projects. However, the utility itself doesn?t have plans to build its own renewables projects, according to Payne. Edison will continue contracting for more renewable supplies, he added. In related news, Edison Capital and its financially struggling Edison Mission Energy subsidiaries will be managed under a single structure, the company announced March 9. The move ?recognizes our focus as a primarily domestic company,? stated Ted Craver, chief executive officer of the integrated company, now known as the Edison Mission Group.

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Edison Renewables Contracts Boost Green Supplies by 2.5 Percent

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