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State Panel Rejects SDG & E; Transmission Line

State Panel Rejects SDG & E; Transmission Line

Energy: Commissioners Say Waiting Would Allow Pursuit of Alternative Energy Solutions

BY RENE’E BEASLEY JONES

Staff Writer

State regulators voted unanimously to deny San Diego Gas & Electric Co.’s proposal to build a 31-mile transmission line stretching from southwest Riverside County to North County.

That concerns many local businesspeople who feel the Valley Rainbow Interconnect remains vital to the region’s future energy reliability.

During a discussion before the Dec. 19 vote, PUC President Loretta Lynch said San Diego County’s energy reliability concerns were not severe enough to pursue the $302 million project at this time.

“If there is a need for this line, it is not for many years,” Lynch said.

Waiting would give the region time to pursue alternative energy solutions, such as greater use of renewable sources of power and conservation programs, she said.

Valley Rainbow would import electricity made from less-clean fossil fuels in other states, Lynch said, and export jobs that could be created by the region exploring alternative energy technologies.

Michael Shames, the executive director of the Utility Consumers’ Action Network, has echoed those comments often. Shames congratulated the PUC’s decision to deny the transmission line’s application.

“For the time being, it’s an appropriate decision,” Shames said. “It doesn’t kill Valley Rainbow, but it gives the communities and SDG & E; time to do more thinking about the project.”

SDG & E; was disappointed with the PUC’s decision, said J.C. Thomas, an SDG & E; spokesman.

“It’s a major setback because what the commission did today is very risky. Asking us to reapply and start the process over again creates a loss of time. We’ve already spent almost two years,” Thomas said.

He wasn’t sure when the company would be ready to start the process over again.

Erik Bruvold, vice president for public policy and infrastructure at the San Diego Regional Economic Development Corp., said the PUC’s decision jeopardizes the region’s energy reliability. The EDC is a founding member of Southern Californians for Valley Rainbow.

“The PUC has, once again, failed in its responsibility to adequately plan for California’s energy future,” Bruvold said.

It’s more important now than ever that San Jose-based Calpine Corp. builds the Otay Mesa Energy Center, Bruvold said.

“But given Calpine’s recent difficulties, we need to find out what we need to do to make that happen,” he said.

Although construction has been stalled, Calpine remains committed to the project, said Kent Robertson, a Calpine spokesman, in an earlier interview.

Bruvold said the PUC decision will create more stumbling blocks for his agency to woo businesses to San Diego.

“Companies are looking for assurances that power will be available, and that reliability standards can be met,” he said.

Recent energy studies indicate the region will be short on power as early as 2005.

“Absent efforts to deal with this shortfall there are real questions about power reliability in San Diego,” Bruvold said.

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