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County updates board on Poemountain FLASHES microgrid and pumped-storage feasibility after PG&E grant reconsideration

5458298 · July 23, 2025
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Summary

County staff and Trane updated the Board of Supervisors on Poemountain FLASHES, a proposed pumped-storage hydro plus solar and water-storage project intended to support firefighting and provide microgrid capability; a revised PG&E Microgrid Incentive Program track allows the county to advance feasibility studies.

County staff and Trane representatives gave an update on the Poemountain FLASHES project at the July 22 meeting, describing it as a "super closed-loop" pumped-storage hydro design coupled with 30 megawatts of solar PV and on-site water storage for firefighting support.

FLASHES (Firefighting Linked Auxiliary Supply Hydraulic Energy Storage) would place high-elevation storage tanks and roof tanks on county land near the Northwest Wastewater Treatment Plant to create roughly 90 million gallons of stored water above Highway 29 and operate up to three Pelton turbines to provide energy to the Lucerne and Hartley substations. Project proponents say the system could support a community-scale microgrid during outages, supply renewable energy and revenue by delivering stored energy at high-value hours, and act as a firefighting resource by supplying sprinkler coverage, helicopter dip tanks and rapid refill stations.

Trane presented the project’s recent funding progress: the county submitted applications to PG&E’s Microgrid Incentive Program (MIP), scoring highly; contract language issues had delayed the MIP award, but a June 26 California Public Utilities Commission instruction prompted PG&E to adjust language and reissue terms that reduce county risk and allow the county to proceed with feasibility work. The MIP funding would support multi-million-dollar feasibility studies (site surveys, geotechnical testing, CEQA/NEPA planning and interconnection engineering). Trane said Brookfield Renewables had considered the project as an investor but declined because feasibility items were not complete; the MIP grant would underwrite those studies to make the project investable.

County staff outlined a timeline: execute modified MIP agreement in late summer, Tranche 2 interconnection studies submitted in December with constructability funding planned for the following spring, and feasibility work through late 2026. If feasibility and interconnection work complete, the county will reach a decision on ownership model — third-party investor ownership (developer-funded) or county/municipal ownership (which could involve revenue bonds or a public power purchaser). Staff also highlighted workforce-development opportunities tied to construction of a large infrastructure project.

Board members asked about project cost-sharing, ownership options, potential rate impacts, schedule and workforce benefits. No vote was taken; staff said they would return with final feasibility results and proposed procurement/ownership options.