Southern California Edison has decided to drop plans for the Arizona portion of a controversial power line running across the desert from the Palo Verde Nuclear Generating Station west of Phoenix to Southern California.
The company said the economics of the full 270-mile project can no longer be justified because of reduced demand for electricity in California and the prospect of new conventional and renewable energy projects in California.
The line was approved by California regulators but rejected by the Arizona Corporation Commission, which feared it would divert power to California that will be needed by Arizona consumers.
Following the ACC rejection, Edison made preliminary plans to appeal to the Federal Energy Regulatory Commission, which can override state decisions on power lines.
On Friday, Edison said it would no longer pursue the FERC appeal. However, Edison said it still wants to build the portion of the line between Blythe and the Palm Springs area.
The utility also said it could revive the Arizona portion if economic conditions change.