California Business Minute™

The California Redevelopment Association, CRA provides legislative
advocacy, professional development and public education.  In support
of its members it responds to legislative proposals and administrative
regulations.

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Hi, I am Tim Johnson and welcome to the California Business Minute.

The largest wind farm in the US will be built in Oregon.  While that is significant,
what is more important is that the energy from this facility is headed supposedly
to California because of the requirement that public utilities in California must
source 33 percent of their energy from renewable sources.

The proposed project, Shepard’s Flat is located in north-central Oregon in Marrow
and Gilliam counties located near the Columbia River.  The wind farm will cover
30 square miles and will provide 845 megawatts of power enough power to support
235,000 homes.  The wind farm will cost $2 billion to build.  It will employ over
400 during construction phase and then employ 35 during operation.

Although located in Oregon, the Shepherds Flat Farm will supply energy to California's
Southern California Edison, to help it fulfill California law in securing 33% of
its power from renewable sources by 2020.

The Shepherds Flat Farm is being built by New York-based Caithness Energy. Construction
will begin next year. GE will be supplying 338 wind turbines at a cost of $1.4 billion
and will also provide 10 years of operational and maintenance services to the project.

While this maybe a very exciting project, this energy will have to travel nearly
1,000 miles to get to its customers.  And given the previous experience with electrical
transmission deregulation in California, it was determined that during that activity
there was not enough capacity to transmit electricity across the grid specifically
long distances given the lack of capacity.  Certainly, California is working to site
new transmission lines; but the decision on the location(s) still remains unresolved.

Many are questioning why do the utility have to buy wind power than transmit over
1,000 miles to Southern California Edison’s service territory.  And what happen to
SC Edison’s efforts to site solar panels on industrial and commercial rooftops in
southern California given the environmental and economic concerns of transmitting
electricity over such long distances?

Until answered, it appears the only ones benefitting economically from this are
Oregonians, New Yorkers and Floridians.

I am Tim Johnson and this has been the California Business Minute.