San Diego Gas & Electric Wins Approval for New Plants
By Andrew Galvin, The Orange County Register, Calif. Knight Ridder/Tribune Business News
San Diego Gas & Electric, which provides electricity to 100,000 customers in south Orange County, received approval on Wednesday from the California Public Utilities Commission to add four generating resources, including the first major power plants to be built in its service territory since 1984.
The Escondido plant, called Palomar, will provide 555 megawatts of power.
Otay Mesa will provide 585 megawatts. A megawatt is enough power to serve 750
typical homes in summer.
Also approved were proposals by Envirepel and Ramco to build a
biomass-fueled, 40-megawatt generator and a 45-megawatt fossil-fueled turbine,
respectively, in Chula Vista.
Of the four proposals, the most controversial was Otay Mesa.
Consumer activists claimed that the plant isn't needed between 2005 and 2007,
as specified in SDG&E's solicitation of bids. Less expensive alternatives
may be available in the post-2007 time frame, the groups argued.
SDG&E's plan was approved by a 3-2 vote of the CPUC, with the dissenting
commissioners objecting to Otay Mesa.
Commission President Michael Peevey, who voted in favor of the plan, noted
that the population of SDG&E's service territory has nearly doubled since
the last major plant was built there.
Commissioner Carl Wood, who voted against it, called for a new solicitation
of generating proposals to compete against Otay Mesa for approval. "It
would encourage Calpine to offer a more competitive price," Wood said.
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