California regulators delay natgas plant retirements

California's State Water Resources Control Board voted late yesterday to delay the retirement of four natural gas-fired power plants following August power demand peaks that led to a series of rolling blackouts in the state.

The board approved three-year extensions for the Alamitos, Huntington Beach and Ormond Beach generating stations to 31 December, 2023, and a one-year extension for the Redondo Beach Generating Station to 31 Dec 2021. Combined, the stations make up a total of 3,750MW of gas-fired power generation.

The Water Resources Control Board said it was responding to a request by California energy, utility, and grid operators and regulators hoping to provide more grid stability and reliability as additional alternatives come online over the next several years.

The plants rely on once-through cooling systems, using ocean water for cooling as part of power generation. California restricted the use of seawater for cooling systems in 2010 in an effort to protect marine life.

The retirements were also planned to align with new rules requiring load-serving entities to procure 3,300MW of non-carbon-emitting electricity resources, part of California's decarbonization efforts.

The California Public Utilities Commission in 2019 suggested delaying the retirements, and said that the state's electric grid reliability was in question as tight supply from renewable electricity resources would meet increased demand. Increased cooling demand for electricity in August led to rolling blackouts in the state, as well as spikes in spot natural gas prices.

By David Haydon