For immediate release: January 10, 2001
Media Contact: Claudia Chandler -- 916 654-4989


California Energy Commission Acts on
Two New Power Plant Proposals

Commission Votes to Begin Licensing Review of Duke Energy's Morro Bay Project, Finds Huntington Beach Power Station Application "Inadequate"


Sacramento - By a unanimous vote at its Business Meeting today, the California Energy Commission began the formal review process for construction and operation of Duke Energy's proposed Morro Bay Power Plant Project.

Based on staff's recommendation, Steve Larson, the Energy Commission's Executive Director, recommended to the Commissioners that the application be accepted today as "data adequate" and ready for staff to begin its detailed review of the project.

On October 23, 2000, Duke Energy submitted plans for a 1,200-megawatt power plant "modernization" at its existing 1,030-megawatt facility in the City of Morro Bay, in San Luis Obispo County. Since that time the Commission staff has examined the application to determine if it contains enough detailed information for an assessment of the project to proceed.

In a previous vote on November 29, 2000, the Commissioners voted to accept Larson's "data inadequate" recommendation on the project. At that time, staff found eight technical areas in which Duke Energy's proposal was incomplete. Since then, staff has determined that supplemental information provided to the Energy Commission offers the detailed information required for an assessment of the project to proceed.

Duke Energy is proposing to construct two new generating units to replace its currently operating generation facilities that use technology from the 1950s and 1960s. The project calls for demolition of existing oil tanks, construction of 1,200 megawatts of new combined cycle power plants, and demolition of the existing power plant and stacks to allow redevelopment of the existing site.

In today's meeting, the Energy Commission designated Energy Commissioner Michal (spelled correctly) Moore as Presiding Member of the Morro Bay Power Plant Review Committee. Commission Chairman William J. Keese will serve as Associate Member.

The Energy Commission's Web Site provides detailed information on the proposed project at:

www.energy.ca.gov/sitingcases/morrobay


Huntington Beach Generating Station

With another unanimous vote today, the Commission acted on the Executive Director's "data inadequate" recommendation on an AES proposal to retool and operate its power plant in Huntington Beach.

The proposal would add 450-megawatts of production to the Huntington Beach Generating Station, located in the City of Huntington Beach, Orange County. It would be a natural gas-fired boiler retooling at the existing facility that AES purchased from Southern California Edison in 1998.

Commission staff found that the AES license application lacks information. According to Executive Director Larson's recommendation to the Commission, once AES provides additional information to supplement its Application for Certification in these subject areas, a new Data Adequacy recommendation will be filed for a full-Commission vote.

The Executive Director's "Data Adequacy Recommendation" on the proposed Huntington Beach Generating Station Retool Project is available on line at:

www.energy.ca.gov/sitingcases/huntingtonbeach

The California Energy Commission has the statutory authority to site and license thermal power plants that are rated at 50 megawatts and larger and related transmission lines, fuel supply lines and other facilities. More information about the Energy Commission's review of California power plants is available at:

www.energy.ca.gov/sitingcases

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