The City of Corona, CA, earlier this month took a step forward in its plans to form a municipally-owned utility after the city council unanimously passed a resolution in support of creating such an entity. However, a final decision on whether to proceed with the project, including the construction of two new power plants, will not be made until a detailed economic analysis is completed over the next six to eight weeks, according to George Hanson, a power utilities and project manager recently hired by the city.

Corona’s city council earlier this month passed a resolution by a unanimous vote of 5-0 to form a municipally-owned telecommunication and power utility. At the same time, the city council also approved several other proposals related to the formation of a municipal utility, including hiring a consultant to help with planning related to the utility and signing off on spending $1 million to buy power-generating equipment. The city council also gave its nod of approval to the hiring of a power utilities and project manager.

Corona has plans to construct two natural gas-fueled power plants that would serve certain city-owned wastewater plants. The two power plants will each generate up to 49 MW of power.

Hanson noted that the city is at the very beginning of the process of getting the two power plants up and running.”We’re beginning to sit down with the utility to discuss interconnection agreements and what have you,” he told NGI. “We’re also running a detailed economic analysis at this point, which will involve a go-no go decision in about six to eight weeks,” Hanson continued. The city is also at the starting point in terms of licensing issues related to the two new power plants.

Hanson said that the results of the economic analysis will determine whether Corona proceeds with its power plant plans. “We’re not just going to do it for the sake of doing it,” he said. “If it doesn’t make economic sense, then they’re going to pull the plug on getting into the business,” Hanson added.

Along with serving the power needs of certain wastewater plants in Corona, the city also has plans for the two power plants to provide energy to new development projects. “The location of the plants aren’t necessarily right next to the developments, so initially it’s probably safe to say that the plants would sell back to the grid, essentially,” Hanson said. “Directly serving new developments may or may not happen immediately,” he continued.

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