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For Immediate Release: September 26, 2007
Media Contact: Claudia Chandler - 916-654-4989

California Energy Commission Begins License Review of
Chula Vista Energy Upgrade Project

Sacramento - The California Energy Commission today accepted an application from MMC Energy Inc. for its proposed 100 megawatt (MW) Chula Vista Energy Upgrade Project (CVEUP). The action starts the Energy Commission's licensing review process.

The Energy Commission voted 4-0 to accept the project as "data adequate," meaning the Commission has enough information to begin the yearlong evaluation of the project. Chairman Jackalyne Pfannenstiel, presiding member, and Vice Chair James Boyd, associate member, will make up the committee overseeing the 12-month process that assures the requirements of the California Environmental Quality Act are met.

On Aug. 10, 2007, MMC Energy Inc. submitted an application for certification to construct and operate the CVEUP, a simple-cycle peaker plant in the city of Chula Vista in San Diego County. The project site is located at 3497 Main St. on a 3.8-acre parcel in Chula Vista's Main Street Industrial Corridor. The site is occupied by MMC's Chula Vista Power Plant, a 44.5 MW simple-cycle, natural gas-fired peaker plant. The proposed plant upgrade would be constructed on vacant land in the northern portion of the parcel.

Some facilities that serve the existing plant would be reused for the new plant, including the existing transmission connection; natural gas, water and sewer pipelines; fencing and sound attenuation wall; stormwater runoff retention basin; and the 12,000-gallon aqueous ammonia tank and tank refilling station.

If approved by the Energy Commission, project construction is expected to begin in fall 2008 and cost about $80 million. The CVEUP is planned to begin generating electricity by fall 2009.

Throughout the project's 12-month licensing process, the Energy Commission will conduct public workshops and hearings in Chula Vista regarding the proposal to determine whether it should be approved for construction and operation and under what set of conditions. More information about the CVEUP is available on the Energy Commission website: http://www.energy.ca.gov/sitingcases/chulavista/index.html.

Since deregulation occurred in 1998, the Energy Commission has licensed or given small power plant exemptions to 63 power plants, totaling 23,549 MW. Thirty-six 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, 18 projects are active in the Energy Commission's review process, representing 6,994 MW. More information on the Energy Commission power plant projects is available at: http://www.energy.ca.gov/sitingcases/all_projects.html.

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