California PUC approves Sempra's Sunrise Powerlink

LOS ANGELES Dec 18 (Reuters) - Sempra Energy's (SRE.N) proposed $2 billion Sunrise Powerlink transmission project received approval on Thursday from the California Public Utilities Commission.

The 123-mile-long, 1,000-megawatt powerline is to open in 2012.

The controversial line -- fought by environmentalists and ratepayer groups -- split the five-member commission as two commissioners made separate proposals.

In the end, commission President Michael Peevey's proposal received a 4-1 "yes" vote from the board. Dissenting was Commissioner Dian Grueneich, who offered a proposal that differed from the one passed by the board, mainly in that it would have required at least a third of the power transmitted on the line be renewable power.

Peevey and other commissioners said during a commission session held in San Francisco that they were confident Sempra's investor-owned utility, San Diego Gas & Electric Co, would keep oral promises that renewable power account for at least a third of the electricity put on Sunrise Powerlink.

The Sunrise Powerlink is to run about 150 miles from the Imperial Valley to San Diego.

The Imperial Valley east of San Diego has potential for geothermal and solar power development.

The CPUC members said they had considered but rejected the advice of an administrative law judge who said the Sunrise Powerlink should be rejected as not needed for California to meet renewable power goals of 20 percent of total power generated by 2010.

The state is expected to set requirements soon that a third of the power delivered to California customers be made from renewable power. (Reporting by Bernie Woodall; Editing by Walter Bagley)