General Category > Economy/Business
California Gas-Fired Power Plant Files for Bankruptcy
rangerrebew:
La Paloma is not the only power plant in California facing closure due to its policy promoting renewable energy
California Gas-Fired Power Plant Files for Bankruptcy
By Institute for Energy Research —— Bio and Archives August 20, 2017
The La Paloma natural gas plant in California filed for bankruptcy last December because it was not getting enough operating time to cover its costs due to solar and other renewable energy receiving preference. The plant, which serves as back-up to the state’s renewable generating technologies, was also denied a reliability charge by the state that would have allowed it to continue to operate. The owners project an annual loss of $39 million without a reliability contract or other support. In its bankruptcy filing, the plant owners listed assets of between $100 million and $500 million and liabilities of $500 million to $1 billion.1 La Paloma is a 1200-megawatt merchant plant located 110 miles northwest of Los Angeles and is able to serve both the San Francisco and Los Angeles markets.2
http://canadafreepress.com/article/california-gas-fired-power-plant-files-for-bankruptcy
IsailedawayfromFR:
I doubt the state will allows this plant to close, as that backup power generation is needed by CA.
thackney:
--- Quote from: IsailedawayfromFR on August 20, 2017, 09:25:01 pm ---I doubt the state will allows this plant to close, as that backup power generation is needed by CA.
--- End quote ---
Do you expect the State to take of the power plant?
Smokin Joe:
--- Quote from: thackney on August 21, 2017, 01:29:17 am ---Do you expect the State to take of the power plant?
--- End quote ---
I think the question becomes one of "Can the power plant operate at a profit (or even breakeven) if it has to compete with subsidized industry?" If the playing field isn't level, it gets tougher.
That said, I don't know what levels of subsidies the 'renewables' get.
Mad Max:
--- Quote from: Smokin Joe on August 21, 2017, 08:06:33 am ---I think the question becomes one of "Can the power plant operate at a profit (or even breakeven) if it has to compete with subsidized industry?" If the playing field isn't level, it gets tougher.
That said, I don't know what levels of subsidies the 'renewables' get.
--- End quote ---
Its difficult for any utility to make a profit when power plants are constantly have regulation after regulation imposed on them. If power plants were freed from some regulation then we can be energy self sufficient.I blame the eco-friendly groups for creating this problem.Natural gas plants emit a tiny fraction of the smog-causing gases and slightly more than half of the greenhouse gases emitted by their coal-burning counterpart.As the U.S. is using natural gas for producing electricity, the air is getting cleaner.
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