Utility Automation & Engineering T&D - FERC OKs Cali ISO's first step in clearing backlog of renewables waiting to hook up to grid

Folsom, CA, July 16, 2008 -- The Federal Energy Regulatory Commission (FERC) issued an order granting the California Independent System Operator Corp. (California ISO) the ability to launch the first part of a two-step process to clear a logjam that has hindered renewable projects attempting to connect to the California grid.

This is the second lift FERC has given the California ISO as it works to help green power developers get their projects on the grid. Late last year, FERC approved the ISO proposal for a new hybrid-financing tool that is reducing cost barriers facing renewable developers and paving the way for transmission "trunk lines" to reach remote and renewable-rich areas.

In the FERC order, the ISO was given permission to waive certain rules and timelines for handling requests from new power plants hoping to hook up to the transmission system. As a result, the ISO can begin immediately to reduce a backlog of projects in its generation interconnection queue. One of the primary benefits is to help accelerate development of green power needed to meet California's Renewables Portfolio Standard and greenhouse gas (GHG) reduction goals.

As part of this transition, the ISO will now be allowed to create three study groups:

* A grandfathered serial study group that would give expedited treatment to projects already in the queue.
* A transition cluster, comprising non-grandfathered projects submitted on or before June 2, 2008.
* An initial cluster for projects submitted on or after June 3, 2008.

In response to the state's renewable and greenhouse gas goals intended to reduce dependence on fossil fuels, a torrent of renewable power projects has poured into the ISO interconnection queue. Currently, 361 interconnection requests totaling more than 105,000 megawatts (MWs) are pending in the interconnection study process. Of these, more than 68,000 MWs are from renewable resources. These far exceed the highest demand on record and also exceed the ability of the current interconnection procedures to efficiently process the requests. FERC's actions are intended to break the logjam and ensure the interconnection process does not impede the California Public Utilities Commission siting process.

The second step in the process to address these issues will be gaining FERC approval for a full-scale Generator Interconnection Process Reform (GIPR) proposal. The California ISO worked closely with stakeholders to develop the proposal which was approved by the ISO Board of Governors. The ISO plans to file the long-term solution with FERC by the end of July 2008. If approved, the GIPR will resolve the source of the procedural flaws in the current interconnection process by increasing the financial commitment necessary for project developers to enter and progress through the interconnection process, studying projects with related system impacts in groups, and providing for pro-rata allocation of transmission upgrades across grouped projects.

"The good news is that renewable power projects are clamoring to supply electricity to California consumers," said California ISO president and CEO Yakout Mansour. "The better news is we can take the first step toward freeing bottlenecks that have prevented these exciting projects from coming online."

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