PG&E Corp.’s National Energy Group began construction on theLa Paloma Generating Plant, a 1,048 MW gas-fired, combined-cyclefacility expected to begin operating in the summer of 2001. Theplant is estimated to burn about 180,000 MMcf/d, and Kern-Mojave isthe closest pipeline source, a spokesman said.

The California Independent System Operator (ISO) hailed LaPaloma as a welcome addition. “As North America’s only regionaltransmission operator relying on competitive market forces tomaintain the critical balance between electricity supply and demandfor California’s 27 million electric customers, the California ISOis very pleased that PG&E’s National Energy Group has steppedforward with the La Paloma facility to fill an essential consumerneed,” said Cal ISO CEO Terry Winter. “This investment shows thatthe market is responding to the growing demand for electricity.”

The La Paloma plant site is about 40 miles west of Bakersfield,CA, When completed, it will be the state’s largest facilitydesigned from the ground up exclusively as a merchant power plant.The project received its California Energy Commission approval inOctober, and financing is being completed now.

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