A late proposed alternative to the long-planned under-bay transmission line project by Babcock and Brown failed to stall a vote by the California Independent System Operator. The board approved the under-bay line September 8. The alternative proposed August 25 by Pacific Gas & Electric would build a 230 kV Moraga-Potrero line from the East Bay to San Francisco and could cost $100 million less than the under-bay proposal, according to Stewart Ramsay, PG&E vice-president of transmission. He asked the board to delay its decision for three months in order to consider the proposal. David Parquet, Babcock and Brown vice-president, told board members that the company would likely not pursue the project if it was delayed for 90 days. "It?s the last inning, and now you want to change the rules," he complained. The board sided with Parquet. Board member Elizabeth Lowe noted that a postponement could allow for an entire new crop of proposals, without anything getting started. The line would take between 45 and 60 days to install, Parquet noted. It's a 400 MW direct-current system from Pittsburg to the Potrero substation. In another vote, the grid operator terminated 1,100 MW of reliability-must-run contracts because the capacity is not expected to be needed next year. It, however, continued nearly 10,000 MW of such contracts. "That can lead to irrevocable decisions," said Alan Comnes, director of regulatory affairs for Dynegy. He intimated that the power plants co-owned with NRG Energy in West Coast Power, such as El Segundo, would be permanently shuttered without the reliability-must-run subsidies provided by CAISO. The contracts generally allow older, less efficient plants to remain on call for their capacity. CAISO staff were directed to provide additional data on next summer?s forecasts and strategies for meeting demand.