Green Power Suppliers to Cut Southern California Edison

LOS ANGELES, California, January 22, 2001 (ENS) - Southern California Edison cannot pay its bills to a group of clean energy power suppliers, so the solar, wind and geothermal power companies have served notice that they will no longer sell Edison their power.

Cameron Ridge, LLC, Luz Solar Partners, Ltd VIII, Luz Solar Partners, Ltd IX, Windpower Partners 1991, L.P., Victory Garden Phase IV Partnership, Sky River Partnership, Ridgetop Energy, LLC, Ormesa Geothermal, and Ormesa Geothermal II, Qualified Facilities that provide electricity to Southern California Edison, each announced Saturday that they intend to suspend service to Edison.

The Qualified Facilities collectively provide Edison with approximately 500 megawatts of electricity, enough for 500,000 homes.

solar

Line-concentrator solar power plant, with solar troughs built by Luz, is operated by Kramer Junction Power in the Mojave Desert of California. Desert (Photo courtesy National Renewable Energy Lab)
The Qualified Facilities have not been selling to the open market but have maintained sales of electricity directly to Edison pursuant to long term power purchase contracts that, since June, have been at a fraction of the cost of out of state generation.

Edison is in default of payment to each of the Qualified Facilities under power purchase agreements between Edison and the facilities. Edison failed to respond to the Qualified Facilities' requests for assurances that they would be paid, the companies say.

In their letters of notice to Edison, each of the Qualified Facilities indicated regret that it had been forced to take this step and that it remains open to any proposals that Edison may have to resolve the situation.

Ken Klee, a partner with Klee, Tuchin, Bogdanoff & Stern in Los Angeles, who serves as counsel to the Qualified Facilities said, "Edison's failure to honor its contractual obligations may cause serious financial injury to producers of clean energy under long term contracts. The ripple effect of Edison's financial situation could be catastrophic unless the state provides credit enhancements to protect valuable supply contracts."

The Qualified Facilities have tried to find a solution short of suspending service but Edison and other parties have not responded to efforts to assure payment. "This is unfortunate given the important role that suppliers of clean energy play in protecting the environment," said Klee.

The Qualified Facilities remain committed to selling electricity to the California market provided it receives assurances that it will be paid by the Department of Water Resources or another creditworthy entity.