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For immediate release: September 12, 2002
Media Contact: Chris Davis - 916-654-4989

Energy Commission Report Calls For
Major Changes In El Segundo Power
Redevelopment Project Proposal


Sacramento - Two major mitigation measures need to be included in the El Segundo Power Redevelopment Project in order for the California Energy Commission staff to recommend approval. The Final Staff Assessment released today by the Energy Commission does not recommend project approval and finds the proposal as it now stands would have significant unmitigated impacts to aquatic biological resources in Santa Monica Bay and to air quality in the region.

The Energy Commission staff recommends remedies for both the aquatic biology and air quality impacts: To avoid impacts to aquatic biological resources, the applicant, El Segundo Power II, LLC, could switch from using water from Santa Monica Bay to cool the power plant to using reclaimed water from the nearby Hyperion Treatment Plant. If the applicant does not change the source of cooling water, a detailed study must be conducted of the impact on aquatic biological resources. Such a study would allow the Energy Commission staff to determine whether mitigation of the impacts is possible. In the area of air quality, the applicant has not fully mitigated the emissions of PM 10 and sulfur dioxide (SO2) from the proposed power plant. The staff suggests potential mitigation measures, including the replacement of tugboat engines in Santa Monica Bay.

The Final Staff Assessment for the El Segundo Power Plant Project is available on the California Energy Commission website at:

www.energy.ca.gov/sitingcases/elsegundo/documents/

Members of the public, community organizations and interested agencies may submit comments on the report to the California Energy Commission by September 30, 2002. In addition, a Final Staff Assessment workshop has been scheduled to receive comments. The workshop will be held:

Wednesday, October 9, 2002
10 a.m. until 8 p.m.
El Segundo City Hall
350 Main Street
El Segundo, California
(Wheelchair Accessible)

Following the workshop, the El Segundo Power Plant Project Committee, consisting of Energy Commissioner Robert Pernell as Presiding Member and Energy Commission Chairman William Keese as Associate Member, will hold formal evidentiary hearings on the power plant proposal.

If approved, El Segundo Power II, LLC, would replace the existing El Segundo Generating Station Units One and Two with a combined-cycle, natural gas-fired power plant on the same site. The existing Units Three and Four at the El Segundo Generating Station would remain unchanged. The two combustion turbine generators at the heart of the new facility, each capable of producing 183 megawatts, would become Units Five and Seven. A steam turbine generator, fed by the heat recovered from the combustion turbine exhaust, would become Unit Six, with the capability to produce 280 megawatts. In all, the new combined cycle facility is expected to generate 630 megawatts net. That means the new facility would generate 280 megawatts more than the current Units One and Two.

Members of the public may participate in the licensing process in a variety of ways. If you need information about how to get involved, please contact the Energy Commission's Public Adviser, Roberta Mendonca at (800) 822-6228, or by e-mail at [pao@energy.state.ca.us].

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