SAN FRANCISCO--(BUSINESS WIRE)--
Pacific Gas and Electric Company (PG&E) today announced a proposal that,
if approved, would provide a clean energy alternative to a decades-old
fossil-fuel power plant in Oakland.
PG&E’s Oakland Clean Energy Initiative would provide a clean and
innovative alternative that could replace the existing power plant and
would be a cleaner and more affordable option than the traditional
approach of using either a new fossil-fueled plant or new transmission
lines through heavily populated areas of Oakland. The proposal would use
local clean energy resources including energy storage, energy efficiency
and electric-system upgrades to ensure reliability in Oakland.
“Today’s event marks an exciting milestone in our work together to meet
the energy needs of this terrific city – and really, to set a model for
other cities in California and beyond,” said Geisha Williams, CEO and
President of PG&E Corporation.
PG&E has invited multiple stakeholders to weigh in on the proposal,
including the city of Oakland; the Port of Oakland; environmental groups
such as the Environmental Defense Fund, the West Oakland Environmental
Indicators Project and the Natural Resources Defense Council; and local
businesses that neighbor the site.
Oakland Mayor Libby Schaaf said the proposal would achieve a number of
goals for the city.
"Today's announcement is exciting because it's another important step
forward for our city as we create a safe, prosperous and healthy Oakland
for our residents. It's not every day that you get to make the air
cleaner, improve the health and quality of life for your residents, and
support green jobs, but that's what this project will do for Oakland,"
Schaaf said.
“The Oakland Clean Energy Initiative sets the right precedent with its
innovative clean energy plan for West Oakland. We are excited to be part
of the project team and look forward to seeing this effort integrated
into the bigger picture of clean, locally owned energy systems and more
resilient communities," said Brian Beveridge of West Oakland
Environmental Indicators Project (WOEIP).
Jamie Fine, Senior Economist, Environmental Defense Fund (EDF), echoed
WOEIP, and added, “PG&E’s proactive approach has the potential to
harness the power of clean energy to help reduce pollution in Oakland, a
win for the community and the environment. We look forward to working
together to successfully deploy these solutions.” Labor groups also said
they support the proposal.
“The working men and women of IBEW Local 1245 are proud partners with
PG&E in providing safe, affordable energy to the city of Oakland, and
all of Northern California. We are excited to see the energy reliability
solutions of the future, developed in the communities where we work and
live,” said Anthony Brown, Assistant Business Manager of IBEW 1245.
“We are tremendously grateful for the support of so many local leaders,
businesses and environmental groups. It’s a great example of what we can
do for our communities and our economy when we work together to come up
with innovative solutions,” Williams said.
The existing plant in the area is a 40-year-old, jet fuel-powered
generating facility at 50 Martin Luther King Jr. Way that is needed for
local reliability. The California Independent System Operator (CAISO)
has a Reliability-Must-Run (RMR) contract with the plant’s owner,
Dynegy, to purchase up to 165 megawatts of energy during peak periods.
A conventional solution to maintaining the system reliability provided
by the aging generating station would be to build a new fossil fuel
power plant or to build new transmission lines through heavily populated
parts of Oakland.
Instead, PG&E’s proposal is to upgrade existing substation
infrastructure and develop new clean energy resources in Oakland. If the
proposal is approved, it will mark the first time that local clean
energy resources are proactively deployed as an alternative to
fossil-fuel generation to provide transmission reliability.
PG&E will be working with East Bay Community Energy to run a market
solicitation, known as a request for offers, to invite distributed
energy resource providers to propose innovative and competitive
solutions as part of the portfolio. Depending on the exact resource mix,
the solicitation is expected to result in 20 to 45 megawatts of clean
energy resources.
PG&E submitted the proposal to the California Independent System
Operator (CAISO) through the annual Transmission Planning Process. CAISO
is scheduled to decide on the initiative in the first quarter of 2018.
If the project is approved by CAISO, PG&E will open up the
request-for-offers process. PG&E is also required by law to file for
cost recovery with the Federal Energy Regulatory Commission and the
California Public Utilities Commission. PG&E expects to make the filing
by the end of 2018. The Oakland Clean Energy Initiative has a forecasted
in-service date of mid-2022.
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E
Corporation (NYSE:PCG), is one of the largest combined natural gas
and electric utilities in the United States. Based in San Francisco,
with more than 20,000 employees, the company delivers some of the
nation’s cleanest energy to nearly 16 million people in Northern and
Central California. For more information, visit www.pge.com
and www.pge.com/en/about/newsroom/index.page.
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Source: Pacific Gas and Electric Company