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For immediate release: April 8, 2003
Media Contact: Chris Davis - (916) 654-4989

Energy Commission Report Recommends
Changes For Tesla Power Project

Sacramento - The staff of the California Energy Commission recommends licensing the 1,120-megawatt Tesla Power Project, with two key changes, in the Final Staff Assessment released today.

The report concludes that the applicant has provided a sufficient Emission Reduction Offset package to mitigate the air quality impacts in the Bay Area Air Quality Management District where the project is located. Since the site is close to the San Joaquin Valley Unified Air Pollution Control District, the majority of the air pollution impacts will occur in that district, specifically in the Tracy area. Therefore, the Energy Commission staff recommends that additional air quality offsets are necessary to adequately mitigate the power plant's impacts in the San Joaquin Valley.

The Energy Commission staff also recommends changing the proposed source of water to cool the power plant. The Midway Power, LLC, plan would supply cooling water from the Kern County Water Agency and the State Water Project through a series of water exchanges and the construction of a water turnout in the California Aqueduct. In the report, Energy Commission staff, along with the agency that would deliver the water to the Tesla Power Project, the city of Tracy, and the Contra Costa Water District, recommend that the facility be cooled with reclaimed water from the city of Tracy's recycled water program.

The Energy Commission staff also identified the cancellation of the site's Williamson Act Contract, which designates the land for agricultural use, as a potentially controversial point. The Alameda County Board of Supervisors has taken preliminary action to rescind the contract, but has not made a final decision at this time.

The Tesla Power Project Final Staff Assessment is available on the Energy Commission's website at:

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

The Final Staff Assessment does not represent a decision or proposed decision on the Tesla Power Project. It represents the staff's independent analysis of the project's potential impacts on the environment, public health and safety, the transmission system and its compliance with all applicable laws, ordinances, regulations and standards. The document will also serve as the staff's testimony at Evidentiary Hearings to be held by the Committee comprised of two Energy Commissioners overseeing this case. At the hearings, the Tesla Power Project Committee will also hear the recommendations of the applicant, other government agencies and interested parties before preparing a proposed decision on the project.

The Tesla Power Project is a proposal from Midway Power, LLC, which is a subsidiary of Florida Power & Light. The project is a 1,120-megawatt, combined-cycle generation station, using four natural gas turbine generators, two heat-recovery steam generators and two steam-turbine generators. The site is a 60-acre portion of a 160-acre parcel in Alameda County just north of PG&E's Tesla Substation and just west of the San Joaquin County line.

The Energy Commission is accepting written comments on the Tesla Power Project Final Staff Assessment through May 6, 2003. Comments must be addressed to:

Tesla Power Project
Attn: Jack Caswell
California Energy Commission
1516 Ninth Street, MS 15
Sacramento, CA 95814

The next step in the Tesla Power Project review will be the release of an addendum to the Final Staff Assessment in May which will analyze the use of reclaimed water to cool the project and additional air quality mitigation.

Public participation is an important part of the Energy Commission's power plant licensing process. To find out how to get involved, contact the Energy Commission's Public Adviser, Roberta Mendonca, at (916) 654-4489, toll free at (800) 822-6228, or by e-mail at:
[pao@energy.state.ca.us]


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