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
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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.
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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?
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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