Proposed power
line generates lots of heat
Jan 29, 2006 - The San Diego Union-Tribune
Author(s): Craig D. Rose
Jan. 29--Like the proverbial line drawn in the sand, San Diego Gas &
Electric's proposal to build a new electricity transmission line from
Imperial County through the heart of Anza-Borrego Desert State Park and
across rural areas of North County has sparked an immediate and heated
debate.
The utility's initial application for the new line -- called the
Sunrise Powerlink and expected to cost up to $1.4 billion -- prompted
protest filings from environmental and consumer groups, as well as from
competing projects and other power companies.
This is not to mention the opposition brewing in the small
communities across the northern part of the county where sections of the
line might be sited.
All this before the first "pre-hearing" in the approval process for
the line, set for Tuesday afternoon in Ramona.
At that session, it's expected that a schedule for the review process
will be established by the California Public Utilities Commission.
Adding heat to the debate over Sunrise is that it comes at a time
when the state is emphasizing renewable energy development as never
before, along with committing itself to reducing the gases that
contribute to global warming.
To some critics, moreover, SDG&E's proposal to spend more than a
billion dollars to hang a new transmission line on large towers across a
pristine desert park seems anachronistic, like a throwback to an earlier
time, and akin to investing in a gas-guzzler instead of a hybrid.
They envision a future with less investment in big transmission or
large generating projects and more on such things as rooftop solar
panels.
But SDG&E argues that the Sunrise project is a hybrid, so to speak,
because the new line would allow San Diego to tap renewable sources of
energy that are expected to be developed in eastern San Diego and
Imperial counties. Those are expected to include wind, geothermal and
solar energy projects.
SDG&E says the line is essential for it to meet the state- mandated
goal of having 20 percent of its electric generating capacity in such
renewables.
But first and foremost -- in SDG&E's view -- the new Sunrise
transmission line is needed to ensure that the region has enough
electricity in the next decade.
"As we've said before, it's not a matter of if Sunrise is needed,"
said Jim Avery, an SDG&E senior vice president, "it's when the line is
needed."
By 2015, SDG&E officials estimate the region will at most need about
5,900 megawatts of electric generating capacity. That includes capacity
to meet demand and backup generation required by regulators to ensure
sufficient power in the event of a transmission line failure or plant
breakdown.
SDG&E now has about 4,750 megawatts of generating capacity and
expects 550 megawatts to be added when the Palomar generating plant
opens later this year, bringing the total to 5,300.
A speculative section of SDG&E's projection for the next 10 years
involves what can be expected from the Encina Generating Station in
Carlsbad and the South Bay Power Plant in Chula Vista.
The owners or operators of those facilities -- NRG Energy and Duke
Energy -- say they want to renovate their plants to produce at least as
much energy as they do now, with less pollution and at lower cost. The
two plants now have the capability to produce about 1,800 megawatts, or
enough to power 1.8 million homes.
In its planning for Sunrise, however, SDG&E projects that these
facilities will produce just 1,000 megawatts. And if Encina or South Bay
were retired rather than repowered, Sunrise might be needed even sooner
to cover shortfalls, SDG&E said.
Sunrise would add about 1,000 megawatts of electricity import
capability to the area, on top of the 2,500 megawatts San Diego is
capable of receiving through two existing lines. SDG&E said an
additional benefit of the new line is that it would provide access to
cheaper electricity elsewhere in the Southwest.
The boost that Sunrise would provide is particularly valuable because
it would eliminate the need to pay for reliability services that now
cost local ratepayers $200 million annually, Avery said.
Those payments are for standby electric generation used in
emergencies and to cover the cost of power line bottlenecks when too
much power clogs the local transmission system.
In explaining what he says will be the cost-benefit of Sunrise, Avery
notes that under California regulations, most utility customers
statewide pay for transmission projects even if they are not in their
service territory.
Under the existing formula, SDG&E customers -- who make up about 10
percent of the state's total -- would pay about 10 percent of the costs
for Sunrise, with customers of Southern California Edison and Pacific
Gas & Electric paying the balance.
"Reliability typically does not pay for itself, but in this case it
does," Avery said.
Bill Powers, chairman of the Border Power Plant Working Group, which
monitors energy development in this region, calls that kind of
accounting a "shell game."
"At some point, we all pay for these transmission projects," said
Powers, adding that SDG&E customers will pay a share of the costs for
transmission projects now being proposed by the other utilities.
Powers said an unspoken motive for the Sunrise project is to open a
new path for moving electricity produced by SDG&E's parent company,
Sempra Energy, from plants it owns in Mexicali and western Arizona.
And Powers added that it's those plants that are responsible for much
of the power line congestion that Avery says is costing local customers
millions.
Powers also said it's possible to look very differently at SDG&E's
future electricity prospects.
If Encina and South Bay were renovated, he said, and if a new partly
built plant under construction by Calpine Corp. on Otay Mesa is
completed, the region will have sufficient power for the next decade.
"Repowering of those plants, along with Otay and our import capacity
of 2,500 megawatts, would give us nearly 5,900 megawatts and ensure
reliability through 2015," Powers said.
Duke Energy, which operates the South Bay Plant, also rejected
SDG&E's contention that Sunrise would provide access to cheaper power in
the region.
"Simply put, it seems counterintuitive to conclude that power from a
gas-fired generation plant in Arizona and transported over a $1 billion
transmission line to San Diego will be more economical" than power
generated at a new plant within the region, Duke said in its filing.
Duke said it filed the protest because SDG&E has failed to consider
less-expensive alternatives to building the power line.
Opponents also question whether Sunrise is a "green" project.
They note that a competing project, called the Green Path, is being
proposed by the Imperial Irrigation District, the Los Angeles Department
of Water and Power and Citizens Energy -- a company headed by Joseph
Kennedy II, a former congressman and son of Robert Kennedy.
It would tap similar renewable resources at a fraction of the
expected cost for Sunrise, perhaps just 25 percent. And the Green Path
could allow SDG&E to import renewably generated electricity to its
service territory, via a route that would move the power north of Anza
Borrego, west to the coast above San Diego County and then down into the
local area.
Though SDG&E in the past said it needed Sunrise to meet the state-
mandated target of 20 percent renewables, the utility more recently
acknowledged that it could satisfy the requirement if power from the
renewable desert projects with which it has contracts is transported on
the Green Path.
But SDG&E says this route could raise costs of that electricity.
Kennedy said the region faces a choice between Green Path and the
Sunrise Powerlink.
"Both projects do not make sense," he said. "It's one or the other."
But the Green Path competes only with a key component of Sunrise,
namely an east-west transmission line piece within Imperial County that
would bring electricity near the eastern edge of the Anza Borrego park.
It's unclear what value this east-west power line would have other than
to connect with another line cutting across Anza Borrego toward San
Diego.
So it's more accurate to say that Citizens is both competing with and
dependent on the Sunrise project.
Kennedy said his company's participation would have an important
advantage for low-income families. Because Citizens is a nonprofit
corporation, it has made a commitment to put profits generated from its
portion of the new transmission line into low-income energy assistance
for area residents, he said.
That could mean up to $2 million annually for San Diego County
residents, according to Citizens.
Kennedy has discussed the idea of coordinating the Green Path with
SDG&E's needs for renewables. Those talks haven't been productive but
they continue, the Masschusetts company said.
Michael Shames, executive director of San Diego's Utility Consumers'
Action Network, says he's still studying the project. But Shames said
Sempra's first filing with regulators should be rejected as inadequate
and he is convinced it would not save money for local utility customers.
"There will be no savings. We're putting a billion in just to get the
power here," he said. "You could build two power plants that would
produce more than this link will bring in."
Shames also said he doubts that a strong case can be made that
Sunrise will provide greater electric reliability than developing power
sources locally.
"There is nothing more reliable than locating the power source in the
area that it will be serving," he said, noting that long power lines are
susceptible to many factors that can create outages.
Beyond the difficulty of selling this project to regulators and the
public, SDG&E has chosen to break new ground in the procedural process.
Instead of proposing a specific route for the line to the California
Public Utilities Commission, SDG&E has identified only broad corridors
for the project, saying it will file a precise route and preferred
alternative with state regulators by March.
Avery says this approach allows for greater community involvement in
the route selection. The need for greater public input was driven home
after the utility failed to win approval for a transmission line
proposal in North County a few years ago, he said.
"On the Valley-Rainbow project, we said we'd build it from here to
here as cheaply as we could and we (upset) a lot of people," Avery said.
Critics say splitting the application process in the way SDG&E
suggests is an unprecedented break with PUC procedure and could leave
regulators in the position of giving approval to a line whose route is
unknown.
The Sierra Club, which joined with the Center for Biological
Diversity in filing a protest to the project, also says SDG&E's approach
precludes fully considering the line's environmental impact.
How can you assess the impact of a project if SDG&E won't say where
it's going, asked Kelly Fuller, who speaks for the local Sierra Club on
the Sunrise project. She also said SDG&E's approach would diminish
community input, not increase it.
"If SDG&E has its way, the public won't be able to comment on where
the line is actually going until it is too far along in the PUC
process," Fuller said.
The Sierra Club also argues that the utility has not fully explored
the development of renewable energy projects within the urban core of
its service territory.
"And why spoil the beauty of the backcountry when you haven't fully
explored alternatives," Fuller said.
Powers believes SDG&E has pretty much decided where the line is
going, noting the white-ribbon markers the utility has placed along a
possible route in the desert and backcountry.
SDG&E says the white ribbons indicate "macro corridors" that have
been presented to the public. Community feedback is playing a role in
selecting a route for the Sunrise Powerlink, the company insists.
But Avery added that it has already been determined that the line
would have to pass through the Anza- Borrego park.
Time may be important in the approval process.
In its filing to the utility commission, UCAN said the PUC's
acceptance of SDG&E's initial application for the project could trigger
a schedule that would, for the first time, allow federal regulators to
approve a new transmission line.
Under the Energy Policy Act of 2005, the Federal Energy Regulatory
Commission can intervene in permitting these projects if state
regulators fail to act on proposals within a year. The siting of
transmission lines had been exclusively a state matter until the act was
passed.
In the local area, SDG&E still has much work to do to convince
residents that the line is necessary.
Tim Stanton of Ramona was unconvinced by a recent open house on the
project in his community.
"I don't think SDG&E is doing enough with renewables," Stanton said.
"And you see a lack of trust about them telling us this is for our own
good. It may be good for their shareholders."
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