San Diego, California
The Naval Station Project is a 47 MW combined cycle, cogeneration facility located at the San Diego Naval Station on the eastern edge of San Diego Bay. The Project achieved commercial operation in 1989. Atlantic Power indirectly owns 100% of the Project, and also manages and operates the Project.
Historically, steam produced by the project has been sold to the Navy under an agreement that allowed use of the site. Electricity from the project has been sold to San Diego Gas & Electric Company (SDG&E) under a long-term PPA that was scheduled to expire in December 2019. The Navy agreement expired in February 2018. Because the Company has been unsuccessful in obtaining the right to remain on the site beyond February 2018, operations of the plant ceased on February 7, 2018. As a result, the PPA with SDG&E was terminated early. The Company is pursuing alternate paths to site control with the Navy. The Company has executed a new seven-year Power Purchase Tolling Agreement (PPTA) for Naval Station with SDG&E, but site control is a condition precedent of the contract. The PPTA and early termination of the original PPA were approved by the California Public Utilities Commission on March 1, 2018.