By the OGJ Online Staff
HOUSTON, June 27 -- California's first new large power plant in 13 years ramped up Wednesday, 1 month ahead of schedule and in time to help stave off this summer's anticipated rotating blackouts.
The 320 Mw gas-fired Sunrise power plant near Bakersfield is 50% owned and will be operated by Edison Mission Energy, a unit of Edison International, Rosemead. Texaco Power & Gasification, a unit of Texaco Inc., owns the remaining 50%.
The Sunrise project is being completed in two phases. Phase 1, which is currently operating, consists of a simple cycle peaking facility. Phase 2 of the project will convert the peaking facility to a 560 Mw, combined cycle operation scheduled to begin operation during the summer of 2003.
Edison Mission has agreed to sell power from the plant to the California Department of Water Resources, which is buying electricity on behalf of the state's investor-owned utilities, at about 6�/kw-hr under a 10-year contract.
The power purchase agreement is linked to a complex deal Gov. Gray Davis and Edison signed to restore its insolvent utility, Southern California Edison Co., to financial health. The deal also calls for the state to buy the utility's transmission system. Southern California Edison ran into problems after it could not recover the full amount of its wholesale electricity purchases from retail ratepayers under a rate freeze put in place as part of California's electricity restructuring law.
"We urgently need action by the state legislature and the California PUC [Public Utilities Commission] to make SCE financially sound and allow it to stay in business," said Edison Chairman John Bryson.
Texaco had begun permitting the Sunrise site as a 320 Mw enhanced oil recovery cogeneration project scheduled to start in 2002. Permitting stalled and the project lost its steam purchaser making it uneconomical. The turbine for the project was about to be shipped to Brazil when Edison Mission Energy stepped in. Terms were reached with Texaco that included an option to buy back into 50% of the project up until commercial operation. Texaco exercised its option this week, Edison said.