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For Immediate Release: August 31, 2006
Media Contact: Susanne Garfield-Jones - 916-654-4989

California Energy Commission to begin review of
South Bay Replacement Power Project


Sacramento - The California Energy Commission has accepted as "complete" an application from L.S. Power South Bay, LLC, for its proposed 620-megawatt (MW) South Bay Replacement Project (SBRP) , starting the licensing review process. The Energy Commission voted 5-0 Wednesday to accept the project as "data adequate," meaning the Commission has enough information to begin the yearlong evaluation of the project. Commissioner John Geesman, presiding member, and Commissioner Arthur Rosenfeld, associate member, will comprise the committee overseeing the project evaluation.

The SBRP would replace the existing South Bay Power Plant that is owned by the San Diego Unified Port District and operated by L.S. Power South Bay under a lease and cooperation agreement with the Port. L.S. Power South Bay wants to build the power plant on a 12.9-acre site at 990 Bay Boulevard in Chula Vista. The site is part of a former liquefied natural gas storage site operated by San Diego Gas & Electric.

The replacement power plant would consist of two natural gas-fired combustion turbines and one steam turbine. The project includes a new 230-kilovolt (kV) substation for the interim and final electrical connection. The interim facilities are proposed to ensure the replacement power plant can begin generating electricity by 2010. Once the new power plant begins operating, the existing power plant would be demolished. The expected capital cost is an estimated $441 million.

Throughout the project's 12-month licensing process, the Energy Commission will conduct public workshops and hearings on the proposal to determine whether it should be approved for construction and operation and under what set of permit conditions.

Since deregulation occurred in 1996, the Energy Commission has licensed or given small power plant exemptions to 54 power plants, totaling 22,904 MW. Thirty-six licensed power plants are in operation, producing 12,908 MW. Since Governor Schwarzenegger took office, 12 of these power plants, totaling 6,268 MW, have been approved. In addition, 11 power plant projects are active in the Energy Commission's review process, representing 4,116 MW. More information on Energy Commission power plant projects is available at:

www.energy.ca.gov/sitingcases/all_projects.html

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