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November 27, 2008

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CPUC President supports
southern route for Sunrise  


By Christy Scott

The Alpine Sun

     The California Public Utilities Commission (CPUC) last week released an Alternate Proposed Decision by President Michael Peevey that approves San Diego Gas and Electric Company’s (SDG&E) construction of the 150-mile Sunrise Powerlink Transmission Project in order to meet renewable power goals. This proposal is just one option regarding Sunrise that the CPUC will be considering as early as Dec. 18.
     President Peevey’s Alternate Proposed Decision approves the Final Environmentally Superior Southern Route for the line in order to deliver renewable generation that would otherwise remain unavailable. The southern route travels from Imperial County through the communities of Boulevard, Campo and Descanso. At the eastern end of Alpine the line would be undergrounded, and would travel through the middle of town down Alpine Boulevard to Puetz Valley.
     “It is well recognized that the lack of transmission is the single biggest barrier to meeting renewable power goals and thus lowering greenhouse gas emissions,” said President Peevey.
     “My Alternate Proposed Decision clears the way for a new renewable energy superhighway, allowing us to tap into the Imperial Valley’s rich renewable resources without delay or unnecessary barriers.”
     President Peevey’s Alternate Proposed Decision follows Governor Schwarzenegger’s Executive Order, signed last week, committing to increase the state’s renewable energy goal to 33 percent by 2020 and clear the red tape for renewable projects.
     “Investors are lining up to pour hundreds of millions of dollars into developing the Imperial Valley’s renewable potential, bringing high-paying new jobs to the region and clean energy to all Californians,” said President Peevey. “But before they can break ground they need to know that they will be able to move the energy to market.”
     President Peevey’s Alternate Proposed Decision finds that the line will generate net benefits of over $125 million per year and is the best way to meet the Governor’s goals of achieving greenhouse gas reductions through renewable procurement at 33 percent levels in the shortest time possible.
     “It is important to look at this issue from a statewide, long-term perspective,” said President Peevey. “I believe my Alternate Proposed Decision will facilitate CPUC policy to achieve greenhouse gas reductions in the shortest time possible with the greatest economic benefits.”
     President Peevey’s Alternate Proposed Decision will be considered by the CPUC’s five Commissioners along with two other proposals: an Administrative Law Judge Proposed Decision that denies the Sunrise application and an Alternate Proposed Decision sponsored by Commissioner Dian M. Grueneich that approves, with conditions, the Southern Route for Sunrise.
     Parties may file comments on President Peevey’s Alternate Proposed Decision. The CPUC’s first opportunity to vote on the three proposals is Dec. 18.
     The Administrative Law Judge proposal denies the Sunrise application, stating that the line is not needed to meet California’s renewable energy requirements, and that, if constructed, it could result in very significant costs to ratepayers and extensive environmental damage.
     Among other things, the ALJ’s proposed decision states SDG&E’s service area will not experience a reliability need or “shortfall” until 2014, and the shortfall may be met more economically and more reliably with generation-based alternatives.
     The other Alternate Proposed Decision sponsored by Commissioner Dian M. Grueneich, the assigned Commissioner in the Sunrise proceeding, approves, with conditions, the Final Environmentally Superior Southern Route for Sunrise that is described in the Final Environmental Impact Report/Environmental Impact Statement. This route avoids Anza-Borrego Desert State Park and all tribal lands.
     The Alternate Proposed Decision also concludes that Sunrise is not needed to meet California’s current 20 percent by 2010 renewables requirement, but that it will be needed to meet California’s greenhouse gas (GHG) reduction goals by facilitating renewable procurement at 33 percent levels.
     The Alternate Proposed Decision finds that if Sunrise is used to deliver renewable power at 33 percent levels it will generate over $100 million per year in ratepayer benefits. Thus, the Alternate Proposed Decision requires SDG&E to prepare a “Sunrise Compliance Plan” for CPUC approval that will ensure that substantial amounts of Imperial Valley renewables will be delivered on the line.
     If SDG&E agrees to the condition, it will be permitted to engage in pre-construction activities prior to the CPUC’s approval of its compliance plan, but it may not engage in any activities that could result in a material physical impact to the environment.
     “It is critical that we focus on our GHG goals,” Grueneich said. “If Sunrise can deliver the Imperial Valley renewables promised by SDG&E, we can go a long way toward meeting those goals and provide hundreds of millions of dollars in ratepayer benefits.”
     For more information on the CPUC, please visit www.cpuc.ca.gov.


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