Renewable Energy Projects in California

Today we seem to be focusing on alternative energy. Energy topics really excite me because our use of electric lights, and the miles we drive are DIRECT conservation options for you and me! Every saved kilowatt and mile makes a difference.

A number of recent actions by California regulators, transmission system operators, and utilities are effectively rolling out the red carpet for renewable energy projects.

California Public Utilities Commission (CPUC) assured utilities that they can recover their investments in new transmission lines to access known renewable energy resources. The CPUC noted that the Tehachapi area in Southern California could produce more than 4,000 megawatts of wind power, but new transmission lines to access that resource could cost as much as $1 billion. The CPUC decision gives utilities confidence in pursuing such projects, since they can recover their costs in customer rates.

Meanwhile, the California Independent System Operator (ISO), which manages the flow of power on the state's power grid, has established a four-point program to assure that the grid can accommodate new renewable power plants.

Southern California Edison (SCE) announced in May that it has reached an agreement with its four largest renewable energy suppliers to establish a fixed price through 2012 for its purchases of small hydropower and wind, solar, biomass, and geothermal power. The agreement establishes a price of 6.15 cents per kilowatt-hour, increasing by 1 percent per year, and eliminates any tie to natural gas prices, which had previously caused prices to vary widely. The agreement was reached with Caithness Energy, LLC, which owns wind and geothermal plants; Colmac Energy Inc., which owns a 47-megawatt biomass power plant on the Cabazon Indian Reservation near Mecca; Ormat Technologies, Inc., which owns three geothermal plants in the Imperial Valley; and FPL Energy, which owns wind and solar thermal power plants. In June, six subsidiaries of CE Generation, LLC, all of which own geothermal plants, also signed onto the deal.

Why is this important to consumers? We can buy alternative power credits and help foster a growing share of energy from these renewable resources. It does cost a bit more than traditional energy -- but think of it as an investment in lower doctor bills from air pollutant problems like respiratory problems, asthma and smog!

We'll be including those alternative power credit resources in our SoCalNature.org database!