Proposed Southern Lines Beset with Hurdles

One of two major transmission lines planned for Southern California was recently deemed to provide greater benefits than costs while the other project remains mired in ownership and cross-state siting requirement issues. Both the Sunrise Powerlink and the Devers-Palo Verde 2 project aim to tap geothermal and solar-powered electricity from the California desert. The Devers line would also import power from Arizona. The Sunrise Powerlink, proposed by San Diego Gas & Electric, was found by California Independent System Operator staff to be "economical" to build. The grid operator board is supposed to vote on the project August 3. Devers-Palo Verde 2 is also being reviewed by the Arizona Power Plant and Transmission Line Siting Committee. Arizona state regulators are concerned that this major line will increase the cost of electricity in their state. Some cities and environmentalists are concerned about the line's physical and visual impacts. Despite the ongoing proceedings in Arizona, sponsored by Southern California Edison, there remains a year-old dispute over whether Edison or the Los Angeles Department of Water & Power should build and own the line. Both utilities are tight-lipped. "SCE and LADWP are working to resolve the contractual issue that has arisen over construction of the DPV2 project," said Edison spokesperson Paul Klein. Sponsorship "is still in discussion," acknowledged Moe Beshir, LADWP manager of contracts. The grid operator board approved the Devers-Palo Verde 2 line in February. Staff stated that the line would be "economic," providing about $18 million in benefits to ratepayers. That line is undergoing regulatory siting review in California while the project is also being assessed by Arizona commissions - despite the lack of clarity as to which utility will build the project. Arizona's siting committee held hearings in late June, with more hearings to be held in August and September. Its recommendations are set to be sent to the Arizona Corporation Commission. "The soonest a decision would come [from the commission] is October," said commission spokesperson Heather Murphy. However, the commission has three months to decide the line's fate. The 500 kV Devers-Palo Verde 2 line would run for 230 miles, of which 102 miles would be in Arizona, to tap into an expected 1,200 MW of imports. It is estimated to cost $600 million. Meanwhile, proponents of the Sunrise Powerlink line in the San Diego region have been taking their case on the road to affected communities. The 120-mile, 500 kV, $1.4 billion project is expected to increase imports to the constrained San Diego basin by 25 percent. It is expected to provide $1.18 billion in benefits to ratepayers over the life of the project, according to CAISO. CAISO found the project to be "economic" after assessing three load scenarios, including a heavy summer load (1-in-10 heat wave) in 2010, with a load demand of 64,725 MW, including LADWP territory.

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Proposed Southern Lines Beset with Hurdles

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