California’s Stranded Solar Assets

Regulators force PG&E to keep open the money-losing Ivanpah plant

WSJ editorial. Excerpts:

"The $2.2 billion plant received investments from Google, NRG Energy and BrightSource Energy, as well as a $1.6 billion loan guarantee from the Obama Administration. Don’t forget a 30% federal tax credit and a $535 million Treasury grant."

"it produced far less power than expected, and at more than four times the cost of new solar photovoltaic projects. It was also the world’s biggest bird fryer, incinerating thousands of birds a year."

"nixing Ivanpah could save ratepayers about $100 million a year."

"The state Public Utilities Commission rejected PG&E’s plan this month because it “risks stranding sunk infrastructure costs,” namely in transmission systems."

"the state plans to force them [Rate-payers] to keep subsidizing the project"

"One reason California electric rates are the second highest in the country . . . is that regulators impose mandates with little regard to cost."

The state "utilities to enter into long-term contracts for solar and wind when they cost significantly more."