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San Joaquin Valley Power Authority recounts early CCA certification, suspension amid credit-market stress
Summary
David Orth told the joint meeting his San Joaquin Valley Power Authority obtained CPUC certification for an implementation plan but suspended active CCA rollout in February because credit-market erosion and supplier credit concerns made contracts and financing infeasible; the authority remains engaged in CPUC proceedings and regional solar procurement.
David Orth, general manager of the Kings River Conservation District and executive director of the San Joaquin Valley Power Authority, described a multi-year effort that produced an approved implementation plan and initial supplier negotiations but stalled when credit-market conditions changed in early 2010.
Orth said the authority had secured a preauthorized $40,000,000 working-capital line and negotiated price-certainty provisions with a supplier, but that the erosion of the credit market and the supplierparent company's condition undermined the contract terms and forced a temporary suspension in February.
Orth described other work that continued despite suspension: participation in CPUC rulemaking, exploration of regional distributed solar projects and an RFP that attracted 18 respondents for pooled small solar sites on municipal properties. He emphasized the financial and regulatory fragility CCAs face when long-term supply contracts and credit assurances are required.
Quote: "We had secured preauthorized $40,000,000 line of working capital credit to support our program," Orth said, adding that market and credit disruptions made their earlier full-service plan impractical.
Next steps include monitoring market conditions and evaluating smaller, distributed renewable projects while remaining engaged in CPUC dockets that affect CCAs.
