A natural gas-fired power plant in California that earlier this year warned it might need to shut down filed for chapter 11 protection yesterday, blaming "inhospitable" regulations and a shift toward renewable energy for power generation, Reuters reported. La Paloma Generating Co LLC, a 1,200 megawatt combined cycle plant about 110 miles northwest of Los Angeles, filed for chapter 11 in Delaware yesterday citing $524 million of debt. In its filing, La Paloma said market factors including slower-than-expected growth in electricity demand and a rise in renewable generation resources in California were "exacerbated by an inhospitable regulatory environment." La Paloma is owned by Rockland Capital LLC, one of several California plant owners that has asked the state for help in offsetting losses, arguing that it is in the state's interest to support the natural gas plants because they provide stability and reliability to the power grid.
