AWEA Issues Fourth Quarter 2019 Market Report

LCG, February 7, 2020--The American Wind Energy Association (AWEA) recently released its new U.S. Wind Industry Fourth Quarter 2019 Market Report. AWEA reports new wind turbine installations have added 5,476 MW of electric generating capacity during the fourth quarter, which results in 2019 installations totaling 9,143 MW. The total installations represent an increase over 2018, but the total for 2019 falls short of total annual installations for 2015 and 2016. In addition to new capacity additions, developers completed 2,500 MW of turbine repowerings for the year.

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Duke Energy Florida Announces New Solar Power Projects

LCG, January 29, 2020--Duke Energy Florida (DEF) Monday announced the locations of its two newest solar power plants that will provide a combined installed capacity of nearly 150 MW. DEF is investing an estimated $1 billion to construct or acquire a total of 700 MW of cost-effective solar power facilities from 2018 through 2022 in Florida, and planning for another 1,500 MW of solar generation through 2028.

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Industry News

Cal-ISO Bills Water Agency $1 Billion for Power

LCG, Nov. 27, 2001--The California Independent System Operator, which purchases power on the volatile spot market to protect the state's transmission system, has sent a bill for $1 billion to the California Department of Water Resources, which purchases power on behalf of the state's investor-owned utilities, which don't have the money to pay for it.

The CDWR didn't actually purchase power from Cal-ISO, but the rationale seems to be that the water agency would have had to buy the power if Cal-ISO hadn't, so it should pay the ISO even if the money is really owed to the companies that produced the power.

The Federal Energy Regulatory Commission last week, in response to filings by independent power producers, ordered Cal-ISO to pay its overdue power bills. The ISO had said it didn't really owe the money because it was simply a scheduling coordinator and not a creditworthy power purchaser.

FERC said simply that the power producers had to be paid for the power requisitioned and scheduled by the ISO.

Cal-ISO said in a filing of its own last week that it would get the money from the CDWR and pay all its past due bills by next February 7, but the payments would have to come in installments, if FERC approves.

Cal-ISO also said payment depended on the CDWR responding to its invoices.

Gary Ackerman, executive director of the Western Power Trading Forum, a trade association representing the power producers, said "We are anxiously waiting for an answer from CDWR."

He added, "We are neither optimistic nor pessimistic -- just iffy."

There is a lot to be "iffy" about -- or very little on which one can hang his hat. The CDWR is arguing with FERC over matters of jurisdiction. The ISO says CDWR is just an agent for the cash-strapped utilities and the utilities are the ones who schedule the power anyway. Except the ISO also says it has to schedule power to protect the transmission grid.

We can't figure it out. But we do know that Cal-ISO has asked the CDWR to pay it for $1 billion worth of power it didn't sell to the CDWR.

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