California Energy Commission suspends license consideration of peaking plant

In September 2012 the San Diego City Council voted against rezoning a parcel of land for the Quail Brush power project

Apr 29th, 2013

The California Energy Commission on April 16 officially suspended further consideration of the proposed 100 MW Quail Brush natural gas-fired peaking plant for one year following a request by the developer.

In early April Quail Brush Genco LLC, filed a request seeking a 12-month suspension in the licensing process because of the California Public Utilities Commission's decision last month denying a power purchase tolling agreement for the project.

Quail Brush, which is affiliated with Cogentrix Energy, had wanted to be online in 2014 in order to win a contract with Sempra Energy (NYSE:SRE) unit San Diego Gas & Electric (SDG&E).

On March 21, CPUC authorized the utility to enter into a purchase power tolling agreement with Escondido Energy Center in 2018. But CPUC also declined to allow SDG&E to enter into similar deals with Pio Pico Energy Center and Quail Brush Power.

The agreements were denied, in part, because they were scheduled to come online in 2014, but the evidence demonstrated that there is no need for incremental local capacity until 2018, the commission said.

Quail Brush already faced local opposition. In September 2012 the San Diego City Council voted against rezoning a parcel of land for the Quail Brush power project.

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