December 18, 2003
ROSEMEAD, Calif., Dec. 18, 2003— The California Public Utilities Commission (CPUC) today authorized Southern California Edison (SCE) to acquire a new power plant currently being developed by the Mountainview Power Company in Redlands, California. Mountainview is a subsidiary of Sequoia Generating.
State agencies and SCE have expressed concern that as early as 2006 there could be insufficient generation to meet the growing needs of the state if new plants are not built. SCE proposed to acquire and develop the Mountainview project to help meet this anticipated need.
“This project is critical to meeting our commitment to ensure reliable power for our customers well into the future,” said SCE Chairman John Bryson. “The CPUC deserves credit for acting decisively and on an accelerated schedule to make the project possible. Now we will ask the Federal Energy Regulatory Commission (FERC) to give the final approval.”
The completion today of the CPUC’s comprehensive review and approval of project costs allows SCE immediately to submit the project’s power contract to FERC for approval. If this second regulatory approval is granted, SCE would exercise the option and complete construction of the 1,054-megawatt, combined-cycle, natural gas-fired project. Timely regulatory approval by FERC is needed if SCE is to exercise its purchase option by the deadline – Feb. 29, 2004.
“Today’s action by the commission allows us to continue plans to build a new, clean, state-of-the-art power plant that would provide much-needed power to our customers,” said SCE President Bob Foster. “We have an option to purchase this project at a price that is significantly less than it would be to site a plant from scratch. Furthermore, we would be able to deliver its output at stable, cost-based rates. The savings we realize would be passed on to our customers.”
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An Edison International (NYSE:EIX) 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.