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SFPUC staff defends combustion-turbine plan as path to close Potrero Unit 3; commissioners and public press for alternatives
Summary
PUC staff told LAFCO the CT project is aimed at releasing RMR status on Potrero Unit 3 and that a DWR contract provides $32.5 million a year in capacity payments; commissioners pushed for ISO analysis of non-fossil alternatives and the public urged the city to pursue renewables and oppose new —peakers.—
PUC staff defended the city—s plan to build four combustion-turbine (CT) units as the path to release reliability-must-run (RMR) obligations on the aging Potrero Unit 3, telling LAFCO that the Department of Water Resources (DWR) contract includes capacity payments the city would forfeit if the project slips.
"Under the contract, we receive $32,500,000 a year when we're available," said Barbara Hale, assistant general manager for power at the PUC, describing the DWR capacity payments and the financial urgency staff said attaches to timely approvals. Staff told commissioners the DWR contract expires at the end of 2015 and that longer delays reduce the effective payment…
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