In an ironic twist of fate, California lawmakers have succeeded in deterring construction of new generation at the same time they are trying to solve their state’s energy shortage. Mirant Corp. said on Friday it will delay construction on its approved 530 MW expansion at its Contra Costa power plant because of market uncertainty. The plant received its permit May 29.

“Our position is the same as it has been for months — it is difficult to begin the more expensive aspects of construction until we know what sort of market rules the plant would operate under,” said Randy Harrison, CEO of Mirant’s western operations. “We very much want to build this expansion now that we have the permit, but there is a great deal of uncertainty surrounding the California energy markets.”

Mirant may begin site clearing operations so the turbines can be installed quickly once the market situation becomes more clear, he said.

“We have to be able to determine that this will be a viable investment before we can put a quarter of a billion dollars worth of steel on the ground,” said Harrison. “We know, however, California needs this power and we want very much to get these turbines generating electricity by the scheduled 2003 start-up date.”

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