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HomeMy WebLinkAbout03.01.21 Board Correspondence - FW_ Progress Report submitted in FERC P-803-087 by Pacific Gas and Electric Company,et al. From:Paulsen, Shaina To:Alpert, Bruce;Bennett, Robin;Clerk of the Board;Connelly, Bill;Cook, Holly;Cook, Robin;Kimmelshue, Tod;Lucero, Debra; Paulsen, Shaina;Pickett, Andy;Ring, Brian;Ritter, Tami;Rodas, Amalia;Sweeney, Kathleen;Teeter, Doug Subject:Board Correspondence - FW: Progress Report submitted in FERC P-803-087 by Pacific Gas and Electric Company,et al. Date:Monday, March 1, 2021 2:40:20 PM Good afternoon, Please see the email correspondence below from FERC. Shaina Paulsen Administrative Assistant, Senior Butte County Administration 25 County Center Drive, Suite 200, Oroville, CA 95965 O: 530.552.3300 |D: 530.552.3304 | F: 530.538.7120 -----Original Message----- From: 'FERC eSubscription' <eSubscription@ferc.gov> Sent: Monday, March 1, 2021 10:25 AM Subject: Progress Report submitted in FERC P-803-087 by Pacific Gas and Electric Company,et al. .ATTENTION: This message originated from outside Butte County. Please exercise judgment before opening attachments, clicking on links, or replying.. On 3/1/2021, the following Filing was submitted to the Federal Energy Regulatory Commission (FERC), Washington D.C.: Filer: Pacific Gas and Electric Company Pacific Gas and Electric Company (as Agent) Docket(s): P-803-087 Lead Applicant: Pacific Gas and Electric Company Filing Type: Progress Report Description: Pacific Gas and Electric Company's Quarterly Progress Report Regarding Sale and Transfer of DeSabla- Centerville Hydroelectric Project, under P-803. To view the document for this Filing, click here https://urldefense.com/v3/__https://elibrary.ferc.gov/eLibrary/filelist? accession_num=20210301-5175__;!!KNMwiTCp4spf!V4aHCF_f47eSETjYvjz1UUuUs- fkaRKKwNx2JiVsJs3a223cEDHS5ASfmPrLe57h1RDvMAmglUs$ To modify your subscriptions, click here: https://urldefense.com/v3/__https://ferconline.ferc.gov/eSubscription.aspx__;!!KNMwiTCp4spf!V4aHCF_f47eSETjYvjz1UUuUs- fkaRKKwNx2JiVsJs3a223cEDHS5ASfmPrLe57h1RDvz2SjU60$ ------------------------------------------------------------------------ Please do not respond to this email. Online help is available here: https://urldefense.com/v3/__http://www.ferc.gov/efiling-help.asp__;!!KNMwiTCp4spf!V4aHCF_f47eSETjYvjz1UUuUs- fkaRKKwNx2JiVsJs3a223cEDHS5ASfmPrLe57h1RDvH-10Lr0$ or for phone support, call 866-208-3676. Pacific Gas and TM Electric Company Jennifer K. Post Mailing Address P.O. Box 7442 San Francisco, CA 94120 Street/Courier Address Law Department 77 Beale Street San Francisco, CA 94105 (415) 973-9809 Fax: (415) 973-5520 Email: Jennifer.Post@pge.com March 1, 2021 E-Filing Ms. Kimberly D. Bose, Secretary FEDERAL ENERGY REGULATORY COMMISSION st 888 – 1 Street, N.E. Washington, D.C. 20426-0001 Re: DeSabla-Centerville Project, FERC No. 803-087 Dear Secretary Bose: On June 16, 2017, the Federal Energy Regulatory Commission (FERC or Commission) issued a letter to Pacific Gas and Electric Company (PG&E) approving PG&E’s Plan and Schedule for the Sale and Transfer of the DeSabla-Centerville Project. The Commission’s letter was in response to PG&E’s May 19, 2017 letter proposing such plan. The Commission directed PG&E to file quarterly progress reports starting September 1, 2017, including: (1) an update on the implemented plan and schedule; (2) the progress made in negotiating the sale and transfer of the project; and (3) any other relevant information. Here is PG&E’s quarterly update: 1) Update on the implemented plan and schedule. PG&E issued a Request for Offers (RFO) seeking proposals for the acquisition of the DeSabla-Centerville Project (DeSabla) on September 6, 2017. Following is a brief summary of the RFO process that has been completed thus far: PG&E received twenty-eight (28) signed Non-Disclosure Agreements (NDAs) from various parties, including independent power producers, public utilities, institutional investors, and local government entities. Each party that signed and returned an NDA received a form of indicative proposal and statement of qualifications during the week of October 16, 2017. PG&E received seven indicative proposals from interested parties on or before January 5, 2018. PG&E narrowed the list to the four most qualified, all of whom completed further diligence and submitted final proposals to PG&E on or before May 4, 2018. PG&E selected a prospective buyer for the Project and executed a non-binding Letter of Intent on June 21, 2018. Kimberly D. Bose, Secretary FEDERAL ENERGY REGULATORY COMMISSION Re: DeSabla-Centerville Project, FERC No. 803-087 March 1, 2021 Page 2 2)Progress made in negotiating the sale and transfer of the Project. Progress on good faith negotiations was adversely impacted by the Camp Fire, PG&E’s bankruptcy proceedings, and the completion of technical interconnection studies. Although these unanticipated disruptions created substantial delays, negotiations are nearing completion regarding specific business terms for the potential sale and transfer of the Project. Facilities were damaged during recent wildfires, as described in PG&E’s notification to the Commission submitted on September 17, 2020. Although damages from the wildfire are believed to be minor, further due diligence must be performed to assess impacts to the proposed terms of transfer. Expected completion of final due diligence by the end of 2020 was delayed due to Covid-19 events and restrictions. The final due diligence was completed in mid- January, resulting in the identification of several follow-up items requiring resolution. Accordingly, the parties now expect to finalize the various Exhibits and Schedules and execute a Purchase Agreement in Q2 2021. 3) Other relevant information. PG&E understands and acknowledges the Commission’s desire for the timely sale and transfer of DeSabla and will work diligently to expedite the process. We appreciate the Commission’s continued understanding regarding the extraordinary circumstances creating the current delays and will strive to keep the Commission informed of any resulting changes to the process. If you have any questions please contact Mike Schonherr, Director, Strategic Agreements at (415) 973-4535 or mike.schonherr@pge.com. You can also reach me at (415) 973-9809 or jennifer.post@pge.com. PG&E thanks the Commission staff for its continued efforts in trying to achieve the best result for the DeSabla Project and all interested parties. Sincerely, Jennifer K. Post Chief Counsel Kimberly D. Bose, Secretary FEDERAL ENERGY REGULATORY COMMISSION Re: DeSabla-Centerville Project, FERC No. 803-087 March 1, 2021 Page 3 cc: Terry L. Turpin, Director Office of Energy Projects, FERC John Katz, Deputy Associate General Counsel for Energy Projects, FERC Eagle Creek Renewable Energy, LLC Valtec Power, LLC Butte Creek Improvement Company, Inc. Paradise Irrigation District KC Hydro (family of companies) United States Forest Service California Sportfishing Protection Alliance, Friends of Butte Creek, American Whitewater, and Friends of the River DeSabla-Centerville Service List, FERC Project No. 803 CERTIFICATE OF SERVICE I hereby certify that I have this day served the foregoing document upon each person designated on the official Service List in this proceeding (Project No. 803) in accordance with the requirements of Rule 2010 of the Commission’s Rules of Practice and Procedure. st Dated atWalnut Creek, Californiathis 1dayofMarch, 2021 /s/ Lynn Powell L YNN POWELL PG&E Law Department 77 Beale Street, B30A-3012 San Francisco, CA 94105-1814 (415) 973-3164