In the News

CPV In the News
  • MARCH 14, 2007
    PR Newswire
    CPV Warren Files with Virginia State Corporation Commission to move gas-fired generation facility forward

    PR Newswire
    March 14, 2007

    CPV Warren LLC Files With SCC to Go Forward in Warren County With Virginia's Cleanest Gas-Fired Generating Facility

    RICHMOND, Va., March 14 /PRNewswire-USNewswire/ -- Competitive Power Ventures, through its affiliate CPV Warren LLC, today filed with the Virginia State Corporation Commission to extend the life of its existing permit to move forward with the cleanest natural gas facility ever licensed in Virginia and among the cleanest natural gas facilities in the United States.

    CPV Warren previously obtained the primary local and state permits needed to build the 600-megawatt environmentally-friendly facility. But construction was delayed because of the downturn in investment in new power generation nationally. Today's filing with the SCC represents significant progress towards moving the project to the final stages of development, said Sharon K. Segner, project director of CPV's Warren facility.

    Ms. Segner said the timing is now appropriate to move forward with building the facility because of:

    1) Increasing electricity reliability concerns in Northern Virginia, particularly starting in the Summer of 2011;

    2) Demand for clean electricity generated by state-of-the-art facilities continues to increase, outstripping existing supply and conservation efforts;

    3) The capital markets for financing power projects have improved.

    Ms. Segner noted that CPV Warren's environmental features are impressive, making it the cleanest natural gas facility of its size to be licensed in Virginia and among the cleanest in the United States. CPV Warren will employ state-of-the-art combined cycle power generating technology and air pollution control systems. It will also employ dry cooling, a state-of-the-art water conservation technology that uses only about 3 percent of the water that a conventional natural gas-fired plant uses.

    The project continues to have strong support in Warren County. When operational, CPV Warren will pay county property taxes estimated to be no less than $1.9 million annually, and the project will be a source of well-paying construction and permanent jobs. Additionally, the project will increase reliability of the power supply in the area.

    Pending receipt of regulatory approvals, the company targets construction to begin in Spring 2008 and commercial operations to begin in Summer 2010.

    The site for CPV Warren is on land zoned for industrial use in the Warren and Kelley industrial parks, and the facility will connect with the PJM Interconnection system through the existing Dominion Virginia Power and Allegheny transmission lines nearby.

    Last September, CPV announced that the global private equity firm Warburg Pincus is investing up to $200 million to assist in CPV's developing a portfolio of new natural gas-fired power generation projects that could grow to 6,000 MW in the United States and Canada. CPV Warren will be among the projects included in the portfolio.

    CPV Warren is a Maryland-based limited liability company established in 2001 for the purpose of developing the facility in Warren County.

    Established in 1999, Competitive Power Ventures is a North American power industry development and asset management company. In addition to its headquarters in Silver Spring, Maryland, CPV has offices in Braintree, Massachusetts; Lakewood, Colorado; and San Francisco, California. The company's development professionals have played critical roles in the successful development of more than 30 power plants, representing over 15,000 megawatts of currently operational power generation capacity. In addition to its natural gas-fired generation development program, the company has over 3,500 MW of wind power projects in active development and manages over 5,500 MW of operational natural-gas fired, combined cycle plants throughout the United States. For more information please visit http://www.cpv.com/.

    Competitive Power Ventures

    CONTACT: Tom Morris, +1-804-698-8803, tom.morris@slaypr.com, forCompetitive Power Ventures

  • FEBRUARY 27, 2007
    Edison News
    SCE signs long-term power contracts with CPV and others in its continuing effort to attract new generation to Southern California

    Edison News 

    February 27, 2007
    ROSEMEAD, Calif., Feb. 16, 2007—Southern California Edison (SCE) today announced
the winning bidders in its competitive solicitation for long-term contracts leading to new power
generation to serve Southern California’s growing energy needs. 


    The power-purchase agreements with two companies will provide Southern California
with 945 megawatts (MW) of new generating capacity, enough power to serve 614,000 average
homes. The contracts will be submitted to the California Public Utilities Commission (CPUC)
for review and approval.

    Winning Bidders Project Developer – Blythe Energy Location – Blythe, CA
    Type - New transmission link connecting combined- cycle natural gas facility to Cal-ISO grid**
    Length – 10 yrs.
    MW* - 490

    Competitive Power Ventures
    Coachella Valley, CA
    Peakers using the new, lower-emission GE LMS 100 natural gas turbines
    10 yrs.
    455
    Total - 945
    *One MW is enough power to serve 650 average homes at a point in time
    **SCE’s RFO included the option of bidding a transmission project that would connect an existing generation resource with a remaining design life of at least 30 years to the California Independent System Operator grid serving SCE’s service territory

    "Southern California needs additional new generating capacity because of rising demand and older power plants closing," said Alan Fohrer, SCE chief executive officer. "We congratulate the winning bidders for proposals that will provide customers with the greatest value."

    SCE's new generation initiative was started in 2005 in response to forecast future shortages of generation supply in the Southern California region of the electrical system overseen by the California Independent System Operator. On July 20, 2006, the CPUC approved SCE's plan for signing 10-year contracts with new generation projects with the benefits and costs of the contracts allocated to all customers within SCE's service territory who benefit from the enhanced reliability.

    SCE then issued a request for offers (RFO) for up to 1,500 MW of new or repowered generating capacity. The request eventually provided the option to bid into one or more of three different "tracks," depending on when the bidder's project would be online.

    "This unique procurement process allows us to sign contracts that benefit all customers on our distribution system, regardless of their choice of electric provider," said Pedro Pizarro, SCE senior vice president of power procurement. "It provides a transitional means to attract much-needed new generation while a market framework is put in place that will provide new resources when needed."

    The fastest of three solicitation tracks in SCE's new generation RFO was for projects that could be online by Aug. 1, 2007. SCE announced Nov. 16, 2006, the winning bidder in this track - Long Beach Generation, LLC, a subsidiary of NRG Energy Inc. (NYSE: NRG). Long Beach Generation received a 10-year power-purchase agreement to provide 260 MW of new generating capacity to serve all customers on SCE's grid. Retired in January 2005, the plant will be refurbished and refitted with the latest emissions-control technology. The CPUC approved the contract with NRG late last month.

    Today's announcement relates to the second track - new generating capacity that could be available by Aug. 1, 2010. A third track, for new facilities that could be operational by Aug. 1, 2013, is still underway and will conclude next year.

    Background - SCE's Competitive Solicitation Process
    SCE power contract solicitations adhere to specific rules established by the CPUC to ensure the utility's power procurement process is open, fair, and transparent and delivers the greatest value possible to customers.

    - As the process begins, a public request for offers is widely distributed and solicitation information is posted on SCE's public access Web site. Independent power producers are encouraged to propose projects that will meet the future needs of SCE's customers outlined in the solicitation.
    - Bidder briefings are held to answer questions and provide information power producers need as they consider preparing contract proposals.
    - Contract bids are received and evaluated by SCE. A short list of the most attractive offers is selected and final negotiations occur. Winning bidders are chosen and contracts signed and submitted to the CPUC for review and approval. The CPUC issues its decision on whether the contracts serve the interests of customers on whose behalf the commitments have been made. In this case, the commission is expected to make its decision later this year.
    - During the course of the solicitation, an independent evaluator (IE) oversees the process, verifying that no preferential treatment is provided to any bidder. Additionally, SCE consults frequently with an independent procurement review group comprised of CPUC staff members and representatives of consumer, environmental, and labor groups that are not market participants.

    # # #

    An Edison International (NYSE:EIX) company, Southern California Edison is one of the nation's largest electric utilities, serving a population of more than 13 million via 4.7 million customer accounts in a 50,000-square mile service area within central, coastal, and Southern California.