LOS ANGELES, Jan. 20, 2001 (PRNewswire) Cameron Ridge, LLC, Luz Solar Partners, Ltd VIII, Luz Solar Partners, Ltd IX, Windpower Partners 1991, L.P., Victory Garden Phase IV Partnership, Sky River Partnership, Ridgetop Energy, LLC, Ormesa Geothermal, and Ormesa Geothermal II, Qualified Facilities that provide electricity to Southern California Edison (Edison), each announced today that they have delivered notice to Edison that they intend to suspend service to Edison.
The Qualified Facilities collectively provide Edison with approximately 500 megawatts of electricity, enough for 500,000 homes. Each of the Qualified Facilities is a provider of “clean” energy in that they generate power through renewable resources, such as solar power, wind power, and geothermal power. They have been reliable providers of electricity to California for over a decade.
The Qualified Facilities have not been selling to the open market but have maintained sales of electricity directly to Edison pursuant to long-term power purchase contracts that, since June, have been at a fraction of the cost of out-of-state generation.
Edison is in default to each of the Qualified Facilities under power purchase agreements between Edison and the facilities. Edison failed to respond to the Qualified Facilities’ requests for assurances that they would be paid.
In their letters to Edison notifying Edison of the suspensions, each of the Qualified Facilities indicated regret that it had been forced to take this step and that it remained open to any proposals that Edison may have to resolve the situation.
Ken Klee, a partner with Klee, Tuchin, Bogdanoff & Stern in Los Angeles, who serves as counsel to the Qualified Facilities stated, “Edison’s failure to honor its contractual obligations may cause serious financial injury to producers of clean energy under long term contracts. The ripple effect of Edison’s financial situation could be catastrophic unless the state provides credit enhancements to protect valuable supply contracts.” The Qualified Facilities have tried to find a solution short of suspending service but Edison and other parties have not responded to efforts to assure payment.
“This is unfortunate given the important role that suppliers of clean energy play in protecting the environment,” said Klee.
The Qualified Facilities remain committed to selling electricity to the California market provided it receives assurances that it will be paid by the Department of Water Resources or another creditworthy entity.
SOURCE Cameron Ridge, LLC