Kern River Gas Transmission appears to have pulled off a coup in the competition to serve new merchant electric generation loads in California’s frenetic race to build new in-state power plants in its plans to construct a 32-mile, 24-inch-diameter pipeline extension directly to the 750-MW High Desert Power Plant now under construction in the open spaces about 100 miles northeast of Los Angeles.

However, the plant developers said Tuesday they still have an option to build a link to the Southern California Gas Co. transmission system through Las Vegas-based Southwest Gas Corp., which operates the distribution services in the immediate area around Victorville, CA.

At stake is 150 MMcf/d load and the prospect for even more longer term if High Desert’s backers decide to try to build additional generation units on the sprawling site, which is part of a closed US Air Force Base. A project engineer said Tuesday that if he had to bet on it, he would put his money on Kern ultimately being the exclusive gas supplier. And as a new natural gas customer, no exit fee is required for the local utility, he noted.

Unlike other new merchant plants being developed, High Desert was permitted for multiple gas sources.

“From a permitting standpoint, Southwest Gas was also a supplier, but right now it is only Kern (in a contractual sense),” said Andy Welch, the project engineer for High Desert since it was conceived between a California developer and a branch of Constellation Power Development, an affiliate of Baltimore Gas and Electric Co.

Kern’s pipeline extension is scheduled to be completed by September 2002, and the new power plant is scheduled for start up the following spring in 2003, said Welch, noting that they have to have the gas ready before the plant is ready to start.

Welch confirmed that despite the electricity woes that have permeated California for the past 12 months his firm is considering other locations for new power plants in California, along with adding units at the High Desert location. “The answer is yes to all of the above,” Welch said.

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