OPPOSE Large Scale Pumped Storage Budget Proposal – “Eagle Crest Bailout”

 

June 25, 2021

Re: OPPOSE Large Scale Pumped Storage Budget Proposal – “Eagle Crest Bailout”

Our diverse coalition of organizations representing environmental, community choice aggregation, renewable energy, industrial ratepayer, agricultural, and veteran interests write in strong opposition to a troubling proposal that includes the ratepayer underwriting of the multi-billion-dollar Eagle Crest (also called Eagle Mountain) pumped storage project through a behind-the-scenes, Budget Trailer bill. Over the past three years, the Florida-based NextEra Corporation has attempted to pass 5 separate controversial bills to force the procurement of its project. Each Eagle Crest Bailout attempt has failed to pass a chamber.

As the Legislature moves forward in the remaining days of Budget negotiations, we strongly support the finalization of a Clean Energy Package that actually advances clean energy. It is necessary these decisions ensure reliability, are cost-effective, support vulnerable communities, protect the environment, and does not overburden the state’s diminishing water supply. We find it ironic that during a multi-year drought, NextEraproposes to burden the Department of Water Resources (DWR) with a costly project that does not provide a new source of water, conservation, or the efficient conveyance of water. Rather, DWR is being used to bailout investment in a project that has failed to succeed in the open marketplace because it proposes substantial economic harm to ratepayers and environmental damage. Proposed within one of the driest places in North America, Eagle Crest would overdraft sensitive aquifers under and surrounding JoshuaTree National Park and encroach upon protected wildlife habitat.

On June 24, 2021, the California Public Utilities Commission (CPUC) adopted a new procurement decision, which includes the vetting of cost-competitive long-duration energy storage, of which pumped storage is one technology. This is the proper venue for determining whether the Eagle Crest project (or any other project) is cost-effective and the best market outcome for ratepayers. A Budget Bailoutundermines this process and manipulates the energy marketplace to force California ratepayer bailout a Florida Corporation’s risky project.

As part of its work, the Legislature must avoid making the cost-of-living and affordability problem worse for residents. It also must protect state treasures like Joshua Tree National Park. Therefore, it is imperative that the Legislature reject the current budget proposal for Large Scale Pumped Storage Projects to advance a multi-billion-dollar ratepayer-funded bailout of the proposed Eagle Crest Pumped Storage Project.