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For immediate release: November 21, 2003
Media Contact: Chris Davis - 916-654-4989

Commission Releases Revised Proposed Decision for Morro Bay Power
Plant Project


Sacramento - The California Energy Commission today released the Revised Presiding Member's Proposed Decision for the Morro Bay Modernization and Replacement Power Plant Project.

The revised proposed decision, like the original made public on April 29, 2003, recommends that the full Energy Commission approve the project, with few revised conditions of certification. Most of the changes are included in the following topic sections: Compliance, Terrestrial and Aquatic Biological Resources, Soil & Water Resources, Socioeconomics, and Visual Resources. Some revisions would allow Duke Energy to proceed with dismantling of the existing tank farm structures without immediately beginning construction on the proposed power plant.

One of the most controversial aspects of the certification process was the choice of the cooling system for the modernization project. The revised proposed decision left intact an earlier recommendation that the plant use once through cooling, using seawater, along with a plan to protect the environment of the Morro Bay Estuary, because dry cooling is not feasible at the proposed location.

The Revised Presiding Member's Proposed Decision for the Morro Bay Modernization and Replacement Power Plant Project is now available on the Energy Commission web site at:

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

The comment period for the revised proposed decision ends December 12, 2003. Members of the public and other interested agencies are invited to participate and provide comments. Those who wish further information about how to participate should contact Margret Kim, the Commission's Public Adviser, at (916) 654-4489, toll free in California at (800) 822-6228, or by email at:

pao@energy.state.ca.us

Those seeking to give comments in person will be able to address the full Commission when a final Decision is considered next year.

Duke Energy, LLC, is requesting a license to build and operate the Morro Bay Modernization and Replacement Power Plant Project. The proposal includes plans to tear down the existing tank farm north of the current power plant to build two new combined cycle, natural gas fired generating units that would produce a total of 1,200 megawatts.

The existing Morro Bay power plant, now producing 1,002 megawatts, would be torn down after the new facility is built. There will be a net increase of approximately 200 megawatts.

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