Duke Energy Power Services (DEPS) has signed a 10-year leasewith the Port of San Diego to operate and eventually replace the706 MW South Bay Power Plant located just south of San Diego in thecity of Chula Vista.

“The plant has historically operated at high capacity levels andis very well positioned in Southern California’s transmission gridto meet the region’s growing electricity demand,” said Bill Hall,DEPS vice president of California operations.

Last November, the Port announced it would purchase the plantfrom San Diego Gas & Electric for $110 million. DEPS isexpected to close on the lease by mid-1999. At the end of thelease, DEPS plans to dismantle the plant and use the facility’s airpermits to build a new power plant to serve the region. The leasewill bring DEPS’ total generation capacity in operation or underdevelopment in California to 5,000 MW.

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