NRG Energy's Carlsbad Energy Center Awaits Approval for 20-Year Power Purchase Agreement

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Researched by Industrial Info Resources (Sugar Land, Texas)--NRG Energy Incorporated (NYSE:NRG) (Princeton, New Jersey) is still waiting for the California Public Utility Commission (CPUC) to approve a 20-year power purchase agreement (PPA) with San Diego Gas & Electric (San Diego, California). The fate of NRG Energy's proposed, 600-megawatt (MW) Carlsbad Energy Center hinges on the agreement.

The proposed $600 million, natural gas-fired, simple-cycle power plant would be constructed next to NRG's operational Encina Power Station (Encina, California). The plant would have six 100-MW General Electric (NYSE:GE) LMS100 combustion turbines, along with a 230/138-kilovolt electrical substation.

ARB Incorporated (Lake Forest, California), a subsidiary of Primoris Corporation (NASDAQ:PRIM) (Dallas, Texas) has been awarded the turn-key contract. ARB still has to perform some front-end engineering, which is not expected to be completed until April or May 2015. The bids for electrical work and specialty subcontractors will be released early next year, with construction expected to start in the last quarter of the year. Completion is expected in 2017.

Burns & McDonnell (Kansas City, Missouri) is providing engineering services for the project.

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