Necessity / Plant Need Discussion

This discussion was initiated by a question from the audience.  Basically the question was that based on information from the 2004 Summer Pre-Seasonal Assessment conducted by the Mid-Atlantic Area Council (MAAC) of the North American Electric Reliability Council (NERC).  [PJM (the transmission organization controlling out power lines) is a member of the MAAC).]  The analysis states that there will be a 18.7% capacity margin and a 23% reserve margin at peak demand this year.  Since that is a fact, why build the plant?  [In fact, excess capacity is actually being sold when this area is at peak need.]

Gordon Chirdon's response - summarized

• We're looking at 2007 and beyond and we believe there will be a real need at that time.

• PJM is coming out with a study that says there will be a deficit in their southwest region (where MD is) by 2007.  He will share the study with us once it is published.

• Sempra is a business.  If they didn't think there was a need for this facility - and that they could make a profit, they would not be going through this entire process.

[I have to agree that I don't believe they would be spending these exorbitant amounts of money to go through this entire process without a real potential benefit at the end of the tunnel.]

Question: What about alternate energy sources - solar, wind - is Sempra looking at those technologies?
Answer: Sempra looks at all technologies.  While there are locations where wind is a good source of power, or solar might make sense, still the best and most reliable power source for the types of loads experienced in this area (peaking under summer A/C loads) is the combined cycle plant.

02/18/2006 08:24 AM