Calif Regulators Approve Sempra Unit's Contract With EnerNOC
16 October 2009 - 5:12AM
Dow Jones News
California regulators on Thursday approved a contract that
Sempra Energy's (SRE) electric utility signed with a unit of
EnerNOC Inc. (ENOC) to provide backup power generation from diesel
generators.
San Diego Gas & Electric has a contract with EnerNOC to
provide 25 megawatts of power by coordinating generation from
several small diesel back-up generators. The output from the
generators is considered "peaking power," or electricity that is
only called into service during times of high demand when extra
generation resources are needed.
The value of the contract was kept confidential, but
Commissioner John Bohn said "it will save ratepayers millions of
dollars over the life of the contract" and is important for
SDG&E's resource adequacy.
Two of the five CPUC commissioners opposed the contract over
concern that conservation should be utilities' top choice for
meeting peak power demand, not diesel-fueled power generators,
which generally produce more greenhouse-gas emissions than other
resources such as natural gas-fueled generators.
But Bohn and two other commissioners prevailed, arguing that the
diesel generators, which are located close to densely populated
areas of San Diego, will be rarely used but will be valuable
resources when they are needed.
-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468;
cassandra.sweet@dowjones.com