Calpine subsidiary Mission Rock Energy Center LLC has terminated its application to build a new gas plant in Ventura County, Calif., citing changing state policies. The project would have replaced some of the 2,000 MW of retiring fossil-fuel generation slated to close because of new regulations restricting the use of ocean water for cooling. Calpine designed the project to suit the California market, combining a modern, efficient gas turbine with battery energy storage. In a regulatory filing, however, Calpine noted that Southern California Edison’s solicitation appears to favor transmission upgrades and energy storage projects to meet its needs. Late last year, NRG Energy canceled a planned 262-MW gas project, also in Ventura County.