Developers of what at one time was California’s first merchantpower plant proposal are gearing up for more concentrated effortsto develop natural gas deals and power marketing efforts, assumingthey get final federal government environmental okays for their$350 million, 700 MW High Desert generation plant by mid-summer.Although delayed more than two years, the plant last week gainedits long-sought state approval from the California EnergyCommission (CEC).

Backed by affiliates of Baltimore Gas and Electric’sConstellation Energy, the High Desert plant was the first proposalsent to the state energy regulators in early 1997 when California’selectric restructuring began under a new state law passed onlymonths before.

“We’re still working on finalizing the plans in both regard togas supplies and power marketing contracts,” said Tom Barnett, theproject’s vice president of plant development. “We’ve got a lot ofwork to do, and we have a lot of options. There really isn’tanything firm we can say.

“In terms of power sales, it should be pointed out that we arepart of the Constellation power source which is all part of theConstellation energy group. It has a very aggressive powermarketing company. They are constantly expanding their role in thewest, and they will be taking over the power marketing aspects ofthe project. Eventually, it could involve a portfolio approach,including a variation of short, long and intermediate-termsupplies.”

Constellation has invested in a number of PURPA-inspired coal,wood and geothermal plants in California, and the High Desertproject will take the company into the state’s rapidly expandingnatural gas-fired merchant plant field. This is the fifth suchplant approved by the CEC; three of the four are under constructionand a fourth one (PG&E Generating’s La Paloma) breaks groundlater this month.

High Desert still needs okays from the U. S. Fish and WildlifeAdministration and the Environmental Protection Agency. Theexpectation by Barnett and project engineer Andy Welch is thatthose approvals should be in hand by July. Because of engineeringand other preliminary work like the gas supply portfolio,construction likely will not begin before the end of the year,Welch said.

Gas supplies will be delivered through Las Vegas-based SouthwestGas, and interstate supplies could come from one or a combinationof three sources-Kern/Mojave, Pacific Gas & Electric orSouthern California Gas from Canadian, Rocky Mountain or Southwestsupply basins.

Richard Nemec, Los Angeles

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