Edison Adds to CA Power Base
Edison Mission Energy (EME), an affiliate of Southern California Edison, said it has acquired the rights to a 320 MW natural gas-fired peaking power facility in Kern County --- which could be online by next August --- and is offering to sell the power to the state.
"From the onset of the California power crisis, we have sought to find means to bring new power to the California market," said John E. Bryson, chairman of parent Edison International. "After months of negotiations, we have finalized an agreement on a critical new project ...We intend to offer this power by contract to the state so that the pricing for it does not depend on California's broken deregulated power market."
"To have a positive impact next summer, we must receive acceptance confirmation from the California Independent System Operator (Cal-ISO) very quickly," said Alan J. Fohrer, president and CEO of EME. The company expects to receive the necessary permits soon to begin construction on Dec. 7.
"EME will also seek to enter into a long-term, cost-based contract with either Pacific Gas & Electric Co. or San Diego Gas & Electric Co. to further ensure that California's consumers reap the benefit of this additional power resource," Fohrer said. EME bought the rights to construct the project in Kern County from Texaco Power and Gasification.
The Sunrise Power Project will be completed in two phases. Phase I will consist of a 320 MW simple-cycle peaking facility scheduled to be in service during the summer 2001. Phase II will convert the peaking facility to a 560 MW, combined-cycle operation with an in-service date of summer 2003.
"EME is pleased to have acquired the Sunrise Project from Texaco, with whom we have a long history of jointly developing and operating power projects," Fohrer said. "Our thanks and appreciation go to the various regulatory agencies for their swift consideration of this important project."
Final regulatory approvals should be received shortly for Phase I of the project. EME plans to seek expedited permitting approval for the Phase II expansion in line with the fast-track approvals process recently enacted by the California legislature.
EME specializes in the development, acquisition, construction management and operation of global power production facilities. It owns nearly 23,000 MW of generating capacity.
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