Complaint against Ormat Nevada, Inc. by California Unions for Reliable Energy

Docket # 11-CAI-02

Committee that oversaw this proceeding:

Karen Douglas
Commissioner and Presiding Member

Robert B. Weisenmiller
Chair and Associate Member

Ken Celli
Hearing Officer

On June 30, 2011, Complainant California Unions for Reliable Energy ("CURE") filed a Verified Complaint and Request for Investigation ("Complaint"), requesting the Commission to investigate whether Ormat Nevada, Inc. ("Ormat") has violated Public Resources Code section 25500 by circumventing the Commission's jurisdiction of Ormat's existing North Brawley Geothermal Development ("North Brawley") and Ormat's proposed East Brawley Geothermal Development ("East Brawley").

CURE alleges that Ormat's North and East Brawley developments are not distinct facilities operating under the 50 MW jurisdictional threshold, but are instead one facility with a combined generating capacity over the 50 MW jurisdictional threshold, and thus should be subject to the Commission's licensing authority.

CURE provides as support a CPUC resolution authorizing a Power Purchase Agreement ("PPA") between Southern California Edison Company ("SCE") and Ormat for the sale of 50 MW from the North Brawley facility, with an option to sell an additional 50 MW from the East Brawley facility. CURE also alleges that the North Brawley and East Brawley facilities are not distinct units but are a single facility because they will function as interdependent and physically interconnected generation units, sharing both transmission and water supply infrastructure, all of which are owned or will be developed by Ormat; they are owned and will be controlled by Ormat; and they are proposed on adjoining parcels, which are leased or owned by Ormat.