July 17, 2003
Unique arrangement would add much-needed, cost-based power generation in California
ROSEMEAD, Calif., July 17, 2003 — Southern California Edison (SCE) announced today it has signed an option agreement with Sequoia Generating LLC, a subsidiary of InterGen, to acquire Mountainview Power Company LLC, the owner of a new state-of-the-art power plant currently being developed in Redlands, California, part of the Inland Empire, the fastest growing area in SCE’s service territory.
“State agencies and Edison are both concerned there will be insufficient new generation to meet growing power demands,” said John E. Bryson, chairman of SCE. “The Mountainview project would add much-needed power generation for California consumers and at significantly less cost than it would take to site a plant from scratch.”
SCE will file an application with the California Public Utilities Commission (CPUC) next Monday proposing a power-purchase agreement between SCE and a wholly owned subsidiary, Mountainview Power Company. The CPUC will fully review and approve the project and costs. Once approved by the CPUC, the cost-based contract would be submitted to the Federal Energy Regulatory Commission (FERC) and subject to the federal filed rate doctrine.
With regulatory approvals, SCE would exercise the option, and recommence full construction of the project. Timely regulatory approvals from both the CPUC and FERC are needed because SCE’s option to purchase Mountainview must be exercised no later than Feb. 29, 2004. SCE is seeking CPUC approval by Dec. 2003 and will seek FERC approval promptly thereafter. SCE will not exercise the option without CPUC and FERC approvals.
“We are taking an extraordinary step by proposing this acquisition to benefit our customers prior to resolution of the customer base and investment recovery issues identified in SCE’s long-term resource plan,” said Alan J. Fohrer, CEO for SCE. “The cost-based, power-purchase agreement approach would allow SCE to commit to this resource while California addresses important policy issues regarding the utility’s obligations to plan and serve.”
“This CPUC is serious about restoring California’s utilities to financial health, and we are serious about investing in California and providing quality and cost-effective service for our customers,” said Bryson. “This is an unusually beneficial opportunity for our customers and the state. We are excited about this opportunity to contribute new generation for the state’s businesses and consumers.”
# # #
An Edison International company, Southern California Edison is one of the nation’s largest electric utilities, serving a population of more than 12 million via 4.5 million customer accounts in a 50,000-square-mile service area within central, coastal and Southern California.