This Commission Determined Sunrise Was Needed To Carry Imperial Valley Renewables
The Sunrise Decision was based on the finding that Sunrise was needed for California to meet a 33% renewable portfolio standard (RPS). The economic and policy justification for the Sunrise Decision was that Sunrise would carry 1,900 MW of Imperial Valley renewable resources to meet a 33% RPS, and that a 33% RPS was necessary for California to achieve its greenhouse gas (GHG) reduction objectives. Everything in the Sunrise Decision hinges on this justification.
The Sunrise Decision's economic and environmental justifications for the line are dependent upon Sunrise carrying Imperial Valley renewables. The Sunrise Decision finds that if, and only if, the 1,900 MW of Imperial Valley resources are developed and delivered on Sunrise, Sunrise will generate $115 million per year in net benefits for ratepayers. The Sunrise Decision also finds that Sunrise is not needed for reliability in San Diego until 2014,9 nor is it needed to meet a 20% RPS given that other less expensive and less environmentally damaging options are available.10
Thus, the Sunrise Decision is clear that absent Sunrise carrying Imperial Valley renewable resources - resources above and beyond what is needed to meet a 20% RPS - Sunrise makes no sense. It makes no economic sense; it makes no environmental sense.
9 The Sunrise Decision notes some uncertainty with this conclusion. See e.g., Sunrise Decision Finding of Fact 7. However, the economic downturn that has continued since the analysis in the Sunrise Decision was prepared has resulted in significant load drops throughout California, thus reinforcing the Sunrise Decision's finding of no reliability need until 2014. If anything, given the magnitude of load drops, the projection of a need in 2014 is significantly overstated.
10 See, e.g., Sunrise Decision Finding of Fact 18.
