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Energy Commission rejects Prepa’s reconsideration of its resource plan

By on February 10, 2017

SAN JUAN – The Puerto Rico Energy Commission (PREC) announced Friday its decision rejecting the Puerto Rico Electric Power Authority’s first Integrated Resource Plan (IRP), an operational plan for the next 20 years.

In September, the PREC issued a resolution in which it disapproved the IRP submitted by Prepa and approved a modified IRP, in which it ordered Prepa to develop and carry out internal procedures to ensure the future IRP complies with legal obligations and professional standards. In October, Prepa sought a reconsideration.

The PREC reaffirmed that Prepa’s IRP was incomplete and did not meet objectives to reduce costs, increase the use of renewable energy and ensure the system’s reliability.

“The PREC is not and will not be Prepa’s rubber stamp,” the commission said in a statement.

According to a summary of the resolution, the PREC rejected Prepa’s request that the Commission rescind an order for Prepa to seek permitting for a large new combined cycle unit at Aguirre Power Plant and repower two units at Aguirre.

The commission also denied Prepa’s request to approve the Aguirrre Offshore Gasport and the conversion to natural gas at this time. “There is a lack of evidence in the record that demonstrates that the aforementioned project, is the best option for meeting the ratepayers and Prepa’s future energy needs. The Commission emphasizes that is not disapproving AOGP,” the panel said.

The PREC in the modified IRP imposed a $15  million cap on all expenditures on AOGP. The PREC also wants Prepa to conduct a financial analysis that includes other options.

Prepa’s requests for modifications involving demand load forecast, reserve margin and Puerto Rico’s wind potential were also denied.

While the PREC also denied Prepa’s request for  new generation at Palo Seco, it granted Prepa’s request for flexibility on the timing of the retirements of Palo Seco Units 1 and 2, Costa Sur units 3 and 4 and San Juan Units 7 and 8, and limited use designations of San Juan’s unit 9 and 10.

It also granted requests involving data, record collection and retention policies, renewable energy contracts and audits, and the timing of reports on environmental matters.

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