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PG&E Must Solicit Energy Storage and DERs to Replace 3 Existing Gas Plants

January 15, 2018

California regulators rejected an effort to award lucrative “must-run” status to three Calpine gas plants, calling for new energy storage and clean resources instead.

The California Public Utilities Commission ruled Thursday to authorize PG&E to procure energy storage or preferred resources (such as demand response or distributed solar) to ensure local reliability in areas previously served by the gas plants. The new resources can be individual or aggregated, and must be available by 2019 “if feasible and at a reasonable cost to ratepayers.”

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