Power plant boom stalls :Developers delay half their projects, .

The Sacramento Bee ^ | Thursday, May 2, 2002 | Carrie Peyton

[Ernest_at_the_Beach]

Developers delay half their projects, but state officials don't fear shortages yet.

Half of California's proposed power plants have become mired in delays that could last months or years, often because their developers say they cannot afford to move ahead right now.

[Ernest_at_the_Beach]

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[Libertarianize the GOP]

Permission to build a plant is a valuable resource, one that takes months of work and millions of dollars to acquire. Once received, it can be sold at a profit.

That is the way it used to work but I am not sure with the way the politicians keep changing the rules that is true any longer.

[snopercod]

The state is likely to permanently lose at least 1,000 megawatts in the next few years as aging plants retire, he said, and more might shut down rather than upgrade to meet air standards.

I still haven't seen anything on how the Bay Area emission cuts have effected the Los Medanos Energy Center [formerly Pittsburg District Energy Facility] power plants.

I had predicted that they would shut down on Jan 1, but AFAIK, that didn't happen. I suspect they are being forced into buying "RECLAIM" credits, and passing the cost on to customers: [Our Clilluns Earth Foundation]:

On March 11, 2002, OCE, along with Communities for a Better Environment, filed complaints against nine companies in the South Coast Basin for their NOx emissions violations. The Regional Clean Air Incentive Market (RECLAIM) program, in theory, allows Reclain Trading Creditss (RTCs) to be generated from mobile source emission reduction rules. For example, if a NOx-producing motor vehicle is replaced with a "zero emitting vehicle," these rules allow for the creation of a mobile source emission reduction credit (a "MERC"). The district's version of the RECLAIM program allows MERCs to be converted into RTCs. However, the EPA found the district's MERC-creating rules applicable here to be flawed and unapprovable. EPA also put the district and the sources on notice that use of RTCs generated from MERCs could subject the source's to federal enforcement.

In almost all of the instances of violation MERC-based RTCs were used to comply with RECLAIM. This flawed implementation of RECLAIM means that more than 778,280 extra pounds of NOx are emitted into the air each year. The suit will be filed under the Clean Air Act.

[daviddennis]

Just wondering - how does this match up with potential peak demand? That is, what if we have an unusually hot summer instead of an average one? It seems to me that the reserve is pretty low in cases of extremely hot weather.

D

[Ernest_at_the_Beach]

AS you point out, weather is a huge factor.

Right now , however, the economy would seem to be the major element.
If it should suddenly take off again then we will be revisiting the power shortage's of last summer .

[Myrddin]

The cool weather and cool economy have taken the heat off the power crisis. It could easily turn around in a short time frame.

[Carry_Okie]

Lawmakers are mulling over Peace's SB 28x, which would toughen deadlines for power plant construction and give the state the option of revoking permits and building critical plants itself if deadlines aren't met.

The beat goes on. They don't want them built. Perhaps we should look at the campaign contributors to Mr. Peace.

[Dog Gone]

The difference this year is the availability of hydro power from Washington and Oregon, which was severely curtailed last year due to drought.

There were a lot of other factors, including a fire at the San Onofre nuke which shut it down, and refueling at the other nukes.

California should be okay for this year unless several key plants go down at the same time during hot weather.

But I question the assumption that adding 1,000 to 1,500 MW per year will keep up with demand. The population projections I've seen would require far more than that, and continually increasing each year.

If the State has to build power plants, that is proof positive that they have done something wrong to deter private investment.

[daviddennis]

Well, Gray Davis really has done his best to deter private investment, no doubt about it. He's worked hard at it!

On the other hand, I think some power plant investors were counting on continued windfalls from a prolonged crisis, so now that things have died down, investment is going to be curtailed.

But note that the article claims that projects are being delayed, not cancelled; my guess is that they are keeping a wary eye on economic trends and pausing until things improve again.

D