CPUC Reverses Course on No-Bid Wind Contract

Continuing to flip-flop on its commitment to open, competitive bidding, the California Public Utilities Commission on a split vote October 7 approved a 51 MW no-bid wind contract between San Diego Gas & Electric and developer Superior Renewable Energy. Commissioner Geoffrey Brown reversed his vote, while commissioners Carl Wood and Loretta Lynch continued to object to the contract. Approving the deal ?undermines the commission?s credibility,? Lynch warned. She noted that the agency had expended significant resources to establish rules and then failed to follow them. Picking this deal may have displaced a better one available through a competitive solicitation, Lynch added. Under the renewables portfolio standard (RPS), utilities must obtain 20 percent of their supplies from renewable resources. In August, Brown was part of a narrow majority that voted down the deal because it was seen as compromising the RPS requirement that bids be competitive and transparent. Brown told Circuit after the meeting that he changed his mind because the bid?s price tag was favorable. He added he would have ?preferred competitive procurement, but it?s wrong to retroactively apply that policy to a vendor.? SDG&E filed an advice letter for approval of the agreement in June, one month before the green solicitation began. The deal with Superior, based in Houston, Texas, was kept under wraps because it was struck outside the RPS process. Although the commission has endorsed transparent, competitive procurement policies, it has backed a number of no-bid deals. To date, there have been seven noncompetitive contracts approved, the most controversial being the Mountainview power plant acquired by Southern California Edison ( Circuit , August 27, 2004). Output from the newly approved wind deal is expected to be on line next year. The Campo and Ewiiaapaay tribes in the region agreed to allow the turbines on their land.

Over 11K Stories!

| Independently Powered Energy News

CPUC Reverses Course on No-Bid Wind Contract

vdharadmin

Related Posts

California Public Utilities Commission Okays Local Supply Reserves

Bills Pass that Move the Needle on Non Fossil Energy Pass

Legislation to Cut Carbon & Ratepayer Bills Pass

Regulators Question LNG Cost Driver