JPMorgan Chase Sells Engergy Rights to Edison (SCE) in HB, Units 3 & 4 Can Proceed


HUNTINGTON BEACH, CALIF. — California utility regulators this week approved JPMorgan Chase & Co’s transfer of tolling agreements (right to market energy for AES) at three power plants in Huntington Beach, Long Beach and Redondo Beach. Previously owned by SCE, the plants had been sold to AES, which operates them and sells back energy to the original company that owned them. Using JP Morgan to sell the energy, that bank began controlling the flow of energy during a time in which a major power source was shut down after leaks were found at San Onofre Nuclear Generating Station. The bank has denied allegations that it manipulated power prices in California and Michigan, but has sold its rights to Southern California Edison (SCE) from Oct. 1, 2013 to May 31, 2018. The sale includes tolling agreements for 430 MW at Units 1 and 2 in Huntington Beach, 1,950 MW at Units 1-6 at the Alamitos plant and 1,310 MW at Units 5-8 at Redondo Beach. That’s enough energy to supply several million customers.

To help maintain the reliability of the power grid should both reactors remain shut over the summer, the California Independent System Operator (ISO) entered into an agreement with AES to convert Huntington Beach Units 3 and 4 into synchronous condensers that provide voltage support to help move power around the grid. JPMorgan had claimed it could prevent AES from building the new condensers, but agreed in this week’s transaction it would relinquish rights and control over HB’s units 3 & 4.

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