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For Immediate Release: August 1, 2007
Media Contact: Claudia Chandler - 916-654-4989

Energy Commission to Review Two Power Plant
Exemption Proposals


Sacramento - The California Energy Commission today announced it will review applications for exemptions for two proposed small power plants that would generate a total of 156 megawatts (MW).

The Commissioners assigned two committees to review the small power plant exemption (SPPE) applications for a proposed 60 MW addition to the Chevron Richmond Refinery electric generation plant and the construction of a 96 MW Orange Grove Project in northern San Diego County. Commissioner Jeffrey Byron, presiding member, and Commissioner Arthur Rosenfeld, associate member, make up the committee that will lead the review of the Chevron Richmond Refinery power project. Vice Chair James Boyd will serve as presiding member, and Commissioner Rosenfeld will serve as associate member for the committee that will review the Orange Grove Project.

Since each project is less than 100 MW, the Energy Commission may excuse each from the usual review process under a small power plant exemption. The Commission must first find that each proposed plant will not create a substantial adverse impact on the environment, the transmission system, or public health.

If an SPPE is granted, Chevron and Orange Grove Energy L.P. will each be responsible for obtaining all necessary local, state, and federal permits to build and operate their respective proposed facilities. Local and state agencies would use the Energy Commission's mitigated negative declaration exemption document when issuing their respective permits.

Chevron proposes to add 60 MW to its existing refinery electrical generation within Chevron's Richmond refinery, located in Richmond. The approximately 2,900-acre refinery occupies most of the Point San Pablo Peninsula. The proposed power plant replacement project will be integrated into Chevron's plans to meet its growing refinery electrical load and produce steam to replace an existing boiler plant. The initial estimated construction cost is about $100 million.

Orange Grove Energy L.P. proposes to construct a 96 MW simple-cycle facility on eight acres within a 202-acre site about five miles east of Fallbrook. The project is designed as a peaking facility that would produce power for San Diego Gas & Electric. The Orange Grove Project would have a six-month construction period planned to start by January 2008. The plant's estimated construction cost is $85 million, and electricity generation would begin generating by June 2008.

Since deregulation occurred in 1998, the Energy Commission has licensed or provided small power plant exemptions to 63 power plants, totaling 23,549 MW. Thirty-eight licensed power plants are in operation, producing 12,910 MW. Since Gov. Schwarzenegger took office, 18 of these power plants, totaling 6,913 MW, have been approved. In addition, 19 power plant projects are active in the Energy Commission's review process, representing 6,747 MW. More information about the Energy Commission's power plant projects is available at: http://www.energy.ca.gov/sitingcases/all_projects.html

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