STATE OF CALIFORNIA
ENERGY RESOURCES CONSERVATION
AND DEVELOPMENT COMMISSION

In the Matter of:                       )     Docket 03-IEP-01
                                        )
Preparation of the 2005 Integrated      )     NOTICE OF COMMITTEE
Energy Policy Report (IEPR)             )     WORKSHOP ON PROJECT FINANCE
________________________________________)

Notice of Committee Workshop
Integrated Energy Policy Report Committee

Appendix A        Appendix B

The California Energy Commission's Integrated Energy Policy Report (IEPR) Committee will conduct a workshop on project finance for large infrastructure projects such as generation facilities and transmission lines. Commissioner John L. Geesman is the Presiding Member and Commissioner James D. Boyd is the Associate Member.

THURSDAY, MAY 6, 2004
9:00 a.m.
CALIFORNIA ENERGY COMMISSION
1516 Ninth Street
First Floor, Hearing Room A
Sacramento, California (Wheelchair Accessible)

Audio from this meeting will be broadcast over the Internet.
For details, please go to:
www.energy.ca.gov/realaudio/

Purpose of the Workshop

This workshop will provide a wide range of perspectives on electricity project finance from a diverse group of experts who will discuss project finance from an international, federal, and state perspective, with a focus on generation and transmission facilities. This discussion will help inform California decision-makers in the public and private sector and other interested parties, with the intent of developing an informational base to use in preparing the 2005 Energy Report.

Workshop participants will examine the nexus between federal and state regulations and opportunities to finance projects in California. Presentations and discussions will explore some of the barriers that exist in the current hybrid California system that adversely impact the level of confidence of financial institutions. Speakers will present federal, state, and international perspectives and encourage a discussion between presenters and with the audience. The preliminary agenda for this event, and a list of the expected speakers, are attached to this notice.

Public Participation

The Energy Commission's Public Adviser, Margret J. Kim, provides the public assistance in participating in Energy Commission activities. If you would like information on how to participate in this workshop, please contact the Public Adviser's Office by phone at (916) 654-4489 or toll free at (800) 822-6228, by FAX at (916) 654-4493, or by e-mail at [pao@energy.state.ca.us]. If you have a disability and require assistance to participate in this workshop, please contact Lou Quiroz at (916) 654-5146 at least five days in advance.

If you have questions on the technical questions of the subject matter of this notice, please call Larry Baird, Policy Analyst, at (916) 654-4543, or e-mail at [Lbaird@energy.state.ca.us]. News media inquiries should be directed to Claudia Chandler, Assistant Executive Director, at (916) 654-4989.

JOHN L. GEESMAN Commissioner and Presiding Member IEPR Committee

JAMES D. BOYD Commissioner and Associate Member IEPR Committee

 

 

 

 

Mail Lists: Energy Policy e-mail list server

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APPENDIX A:
ENERGY FINANCE OPTIONS FOR THE
STATE OF CALIFORNIA
MAY 6, 2004

9:00	Welcome John Geesman, Commissioner, California Energy Commission
9:10	Opening Remarks, Agenda Anne-Marie Borbely-Bartis, (Battelle at) U.S. Department of Energy
9:30	Wholesale energy markets in the Western U.S-pricing and contracts Sebastian Tiger, Senior Advisor, Office of Market Oversight & Investigation, Federal Energy Regulatory Commission
10:45	Financing traditional production capacity in California Philip Huyck, Investment Fund Advisor
12pm	Lunch
1:00	Financing traditional delivery capacity in California wires Perry Cole, Senior Vice President, TransElect
2:00	Developing new "capacity" in California: Integrated Supply/Demand Options and Lessons from the European Union Peter Garforth, President, Garforth International LLC
3:00	Open Discussion & Next Steps

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APPENDIX B:
WORKSHOP TOPICS AND SPEAKERS

Anne-Marie Borbely-Bartis

Anne-Marie Borbely-Bartis, (Battelle at U. S. Department of Energy), has been facilitating workshops around the United States for the past two years to gather information for the Department regarding a number of emerging energy technologies. She will introduce the guest speakers and facilitate the discussions following each presentation.

Sebastian Tiger

Sebastian Tiger, from the Federal Energy Regulatory Commission's Office of Market Oversight and Investigations, will discuss the relation of wholesale power markets and market design to signals for and financing of energy infrastructure. His presentation will compare and contrast, from regulatory and investor perspectives, the incentives and impediments for financing new projects in California and Western markets with other regional markets in the United States.

Philip Huyck

Philip Huyck will give a historical review of power financing structures in the context of regulation, summarizing the thinking in roughly each of the last four decades: 70s traditional utility financing (Averich Johnson effect) with a joint venture project finance, 80s PURPA project finance, 90s merchant plant limited recourse financing, and the virtual utility of 2000 chaos and blowback.

Mr. Huyck will open with the fundamental question: is electricity a commodity or a social good? Reactions to the proposed options are determined to a large degree by one's response to this question. He will then discuss various sources of capital and state-of-the-market with emphasis on (gun-shy) fixed income sources (banks and institutional market).

He will close with a matrix for analyzing options for going forward. This presentation does not have a fixed answer, but is just an approach that accommodates the key variables in some realistic manner.

Perry Cole

Perry Cole (Trans-Elect) will discuss the issues involved in developing and financing new transmission infrastructure in California, with a focus on his recent experience with the Path 15 500kV project and the issues in raising capital for that project and new transmission in general. He will also discuss California's reputation in the financial markets, the role of the various state agencies, as well as how unique public-private partnerships may be a good model for future project development.

Peter Garforth

In our attempts to introduce new technologies into a marketplace with 50-year asset lives, the state cannot simply switch from a 100 years of centralized energy infrastructure in favor of more load-specific energy production and delivery systems. It is possible, however, to introduce new technologies and business models into the existing architecture which can begin the process of building out a demand-centric infrastructure that compliments California's current centralized supply system.

Peter Garforth will explain how this integrated supply/demand planning is currently managed in selected European cities, show how new developments can be designed to sharply reduce marginal energy demand, and the net benefits (e.g., reductions in both aggregate AND peak energy demand) in their implementation.

The views offered in these presentations are those of the speakers and not necessarily those of the Energy Commission. This workshop is intended to encourage a frank and open discussion of these important issues.

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The views offered in these presentations are those of the speakers and not necessarily those of the Energy Commission. This workshop is intended to encourage a frank and open discussion of these important issues.