[California Energy Commission Letterhead]

STATE OF CALIFORNIA
ENERGY RESOURCES CONSERVATION
AND DEVELOPMENT COMMISSION



In the matter of:                )
MIRANT DELTA, LLC'S              )  Docket No. 00-AFC-1C
Gateway POWER PLANT UNIT 8  )	
                                 )  Order No. 04-0825-04
                                 )  ORDER APPROVING Request to extend
                                 ) 	Construction Milestones
_________________________________)

On July 6, 2004, Mirant Delta, LLC requested the California Energy Commission extend Gateway Power Plant Unit 8 construction milestones for a second time. The original milestone specified commercial operation in August, 2003. Construction of the project has been suspended since February, 2002, when the first request to extend milestones was approved by staff with a commercial operation date of June, 2005. At that time, staff requested that the Commission make the final determination regarding any additional requests for extensions by Mirant. Mirant's new request extends construction milestones specifying a commercial operation date of November, 2006.

COMMISSION FINDINGS

At a regularly scheduled Business Meeting on August 25, 2004, the Energy Commission considered staff's recommendation and approved Mirant's request, in order to help facilitate potential transfer of ownership and subsequent construction of the project. Without another extension of the construction milestones, the status of Mirant's certificate would be in question, and could jeopardize negotiations to transfer ownership.

CONCLUSION AND ORDER

The Energy Commission concludes that the proposed extension of the Gateway Power Plant Unit 8 construction milestones may help facilitate transfer of ownership and subsequent construction and operation of the project, and hereby approves Mirant Delta, LLC's request to extend construction milestones for a commercial operation date of November, 2006.

IT IS SO ORDERED.



Date: August 25, 2004


STATE OF CALIFORNIA
ENERGY RESOURCES CONSERVATION
AND DEVELOPMENT COMMISSION


_______signed____________
WILLIAM J. KEESE, Chairman


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