The San Jose Mercury News reports that the state Public Utilities Commission (PUC) in California has rejected a contract between PG&E and Finavera Renewables.

The chief reason given for the rejection was related to viability of the project. According to the story, “The commission noted that a prototype buoy deployed by Finavera off the Oregon coast in 2007 sank before its six-week test period was concluded.”

The buoy in question sank in November of 2007 just one day before it was to be removed from the ocean.