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For Immediate Release: November 3, 2005
Media Contact: : Mary Ann Costamagna - 916-654-4989

Energy Commission Denies El Segundo Power II's Request to
Delay Payments for Santa Monica Bay Ecosystem Study

Sacramento - In a unanimous vote, the five-member California Energy Commission today voted to deny the El Segundo Power II, LLC's Redevelopment Project's request to delay the start of payments for a $5 million study to assess the ecological condition of the Santa Monica Bay.

On September 30, 2005, the owner/operators of the Project filed a petition to modify the payment schedule for a $5 million Santa Monica Bay Ecosystem study, which was among the terms and conditions required by the Energy Commission for licensing of the 630-megawatt natural gas-fired project in the City of El Segundo, Los Angeles County.

The Santa Monica Bay study required the project owner to pay at least $250,000 within 30 days after the Energy Commission Decision became final, with the remainder of the first $1 million to be paid in sums of at least $250,000 every quarter thereafter. The remaining sum of $4 million is to be paid according to a schedule proposed by the project owner, in consultation with the Santa Monica Bay Restoration Commission, and approved by Energy Commission staff.

El Segundo Power II had requested the Energy Commission modify this requirement and allow payments to begin 90 days prior to the start of construction of the new generating units, rather than 30 days subsequent the Energy Commission's decision on the project becoming final.

Due to a challenge to the Commission's Decision to certify the El Segundo Project, the date the Decision became final was delayed to August 31, 2005; on that day the California Supreme Court denied the petition. The first $250,000 payment, according to the Commission's Final Decision, was then due on September 30, 2005.

Today's Energy Commission decision to deny El Segundo's request for a delayed payment schedule is based on regulations which require the need to establish a substantial change in circumstances since the Energy Commission certified the project. The Commission ruled that there was no substantial change in circumstances in denying the request.

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