The La Paloma natural gas plant in California filed for bankruptcy last December because it was not getting enough operating time to cover its costs due to solar and other renewable energy receiving preference. The plant, which serves as back-up to the state's renewable generating technologies, was also denied a reliability charge by the state that would have allowed it to continue to operate. The owners project an annual loss of $39 million without a reliability contract or other support. In its bankruptcy filing, the plant owners listed assets of between $100 million and $500 million and liabilities of $500 million to $1 billion.1 La Paloma is a 1200-megawatt merchant plant located 110 miles northwest of Los Angeles and is able to serve both the San Francisco and Los Angeles markets.2
