By Rebecca Smith And Michael Calia
Four energy companies are teaming up on an $8-billion effort to
ship electric power produced in Wyoming all the way to Southern
California via transmission lines, with the help of a novel
energy-storage and generation system to be built in Utah.
The project comes as California pushes utilities to develop
significant volumes stored energy sources to smooth supply flows
when there are fluctuations in output from solar-powered generation
and wind turbines.
The four companies--Pathfinder Renewable Wind Energy, Magnum
Energy, Dresser-Rand Group Inc. and Duke-American
Transmission--intend to submit a formal plan by early 2015 to the
Southern California Public Power Authority, which is seeking
proposals for renewable energy and energy storage projects.
Under the plan proposed on Tuesday, Pathfinder Renewable Wind
Energy would build and operate a $4 billion wind farm near
Chugwater, Wyo., 40 miles north of Cheyenne. It would generate up
to 2,100 megawatts of electricity, the bulk of which would be
destined for California's Los Angeles basin.
Pathfinder, Magnum Energy and Dresser-Rand would also build a
$1.5-billion compressed air storage system at a site near Delta,
Utah, about 130 miles southwest of Salt Lake City. The facility
would also house power generation units run off the compressed air.
It would have a capacity of 1,200 megawatts and would be filled
with air during times when demand for electricity is low.
Meanwhile, Duke-American Transmission would build a $2.6-billion
transmission line to connect the Wyoming wind farm with the Utah
storage facility, from where the electric power would eventually
link up with an existing transmission line carrying electricity
from Utah to California.
The partners said all the operating pieces would probably not be
in place until 2023, and the project is contingent on regulatory
approvals and securing contracts with utilities to buy the
electricity.
Although parts of the project, including the wind farm, were
already on the drawing board, creating a complete integrated
package is new.
Jim Heid, senior vice president of Houston-based Dresser-Rand,
which agreed this week to be acquired by Siemens AG for $6.4
billion, said putting all the pieces together creates "a better
mousetrap."
The companies wouldn't say what they intend to charge for the
electricity they produce from the project, but they said the price
will be attractive to users because the wind turbines are expected
to be some of the most productive in the U.S.
California winds typically die down in the late afternoon,
slowing the state's wind turbines when electricity is most needed.
On the other hand, winds in Wyoming tend to pick up later in the
day, allowing that state to produce more electricity from its
turbines. Shifting power from Wyoming to California at the
appropriate time would make for a smoother flow of electricity
without disrupting the electricity grid.
Write to Rebecca Smith at rebecca.smith@wsj.com and Michael
Calia at michael.calia@wsj.com
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