California Public Utilities Commission Approves NRG Energy’s Carlsbad Energy Center

California Public Utilities Commission (CPUC) has approved the SDG&E Power Purchase and Tolling Agreement for the NRG Energy, Inc. (NYSE: NRG) Carlsbad Energy Center. The 500-megawatt, five-unit natural gas peaking plant expects to help ensure reliability in southern California following the closure of the San Onofre Nuclear Generating Station in 2013 and the impending retirement of the Encina Generating Station due to California’s Once-Through-Cooling ban.

“We appreciate the CPUC’s vote of confidence that the Carlsbad Energy Center is the best approach to have the appropriate, flexible capacity online by 2017 to enable California to reach its greenhouse gas reduction goals through building additional renewable generation while preserving the reliability of the grid,” said John Chillemi, president of NRG Energy’s West region. “We appreciate the CAISO’s recognition of the project’s contribution to the grid and SDG&E’s continued support of the project and the benefits it will bring to all of southern California. And we appreciate the City of Carlsbad’s focus on the environmental benefits of the project to build a smaller, more efficient plant that complies with the State’s once-through-cooling policies, and enables the demolition of Encina and development of the underlying coastline property.”

The Carlsbad Energy Center is expected to come online in conjunction with the retirement of the Encina station at the end of 2017. Once the new units are operational, NRG expects to begin the process of demolishing the retired Encina plant.

The Carlsbad Energy Center is being developed by NRG and is part of the Right of First Offer Agreement between NRG and NRG Yield.



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