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For Immediate Release: February 27, 2004
Contact: Chris Davis   916-654-4989

Energy Commission Committee Partially Recommends Tesla Power Project

Sacramento - The Committee designated by the California Energy Commission to review the Tesla Power Project reports that it needs more information in the areas of air quality and water resources before it can recommend that the facility be licensed. The Presiding Member's Proposed Decision released today finds the project would comply with other applicable laws, ordinances, regulations and standards.

The document also includes a schedule for more Evidentiary Hearings to reopen the record and receive testimony in the following areas:

  • The potential impacts to air quality of ammonia slip from the project and possible mitigation measures that might be needed.

  • The potential for PM10 to create significant, cumulative impacts and, if necessary, a Condition of Certification to be added to reduce cooling tower emissions of particulate matter of less than 10 microns in size.

  • An update on the status of the California Air Resources Board's proposed PM2.5 standards and suggested offsets to mitigate the impacts of particulate matter of less than 2.5 microns in size.

  • The source of cooling water for the project: fresh water as proposed by the applicant; reclaimed wastewater as suggested by the Commission staff; or dry cooling.

  • The Presiding Member's Proposed Decision for the Tesla Power Project is available on the Energy Commission website at:

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

The Proposed Decision also recommends Conditions of Certification which include a provision requiring the applicant to pay sufficient funds to reduce specified air pollutants for the life of the project in nearby San Joaquin County, even if that mitigation costs more than the $957,751 that the applicant has agreed to pay the San Joaquin Valley Unified Air Pollution Control District. Another condition would require the applicant to pay the $600,000 it has offered to the city of Tracy for local air quality improvements that can be obtained through the clean school bus program.

The Tesla Power Project is a proposal of Midway Power LLC, which is a wholly-owned subsidiary of Florida Power & Light Group/FPL Energy. The project includes a 1,120 megawatt, natural gas-fired, combined cycle power plant anticipated to begin operation in the third quarter of 2006. The site for the $600 million to $700 million facility is on 60 acres near the PG&E Tesla Substation in Eastern Alameda County, not far from the border of San Joaquin County.

The Presiding Member's Proposed Decision is not a final decision for the Tesla Power Project. The full Energy Commission must vote whether to license the power plant. Before that vote can take place, a Committee Conference and Evidentiary Hearing will be held on April 8, 2004. The Committee will subsequently issue a Revised Proposed Decision to include new evidence received at the hearing.

Written comments on the proposed decision will be accepted through April 9, 2004. Comments must be sent to:

Tesla Power Project
Docket # 01-AFC-21
California Energy Commission
1516 Ninth Street, MS-9
Sacramento, California 95814

Public participation is an important part of the California Energy Commission's power plant licensing process. For more information on how to submit comments and get involved in the process, contact the Commission's Public Adviser, Margret J. Kim, at (916) 654-4489, (800) 822-6228, or by e-mail at:

Reporter notes:
Media inquiries should be addressed to Chris Davis at (916) 654-4989.

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