Palmdale's Energy Future Comes in View Power-Plant Permits Eyed
Posted on: Thursday, 11 August 2005, 00:00 CDT
PALMDALE - With an eye toward securing the city's energy needs, Palmdale officials are exploring the idea of obtaining permits for a 500-megawatt power plant - either to build themselves or to sell.
A company that built a power plant in Victorville in 2003 is in talks with the city officials about pursuing permits for a Palmdale plant. It would take about two years and $5.5 million just to acquire the necessary permits.
"We think it's the best way for the city and its industries to control its own destiny," said Tom Barnett, Inland Energy's executive vice president.
The plant would have two 165-megawatt gas-fired turbines and a steam turbine capable of generating 170 megawatts. The plant could be built on as little as 20 acres, Barnett said.
In addition to generating power, the plant could play a role in efforts to expand the capacity of the wastewater treatment plant that serves Palmdale. The power plant would require 2.2 million gallons of water a day, and tertiary-treated sewage water could be used.
In the two years of going through the permitting process, the city could analyze what arrangement for using the permit would best serve the city's interests, said Assistant City Manager Steve Williams.
Possibilities include the city forming its own municipal utility, like Los Angeles, Glendale and other cities do, assigning the permit to a company, or perhaps selling the permit outright.
Barnett believes such a permit would be worth about $20 million by the year 2007.
The state in general, and Southern California in particular, are at risk of future blackouts because too few power plants are being built. Investors are not willing to step forward because of uncertainty about the energy market and future regulations, Barnett said.
In the time it would take for Palmdale to get a permit, many of the uncertainties will have been resolved, Barnett said.
Williams said he will bring a proposal forward later this year for the council to consider hiring Inland Energy as consultants to pursue the permits.
Among the appealing aspects of the idea, city officials said, was that a power plant could be used to help draw in additional jobs to the region.
"If we can say yes, we have reliable power sources that will help us at the bargaining table," said Councilman Steve Hofbauer.
Inland Energy has been involved in the development of a 830- megawatt power plant in Victorville that became operational in 2003. The company also signed an agreement with the city of Victorville in March to pursue permitting for a 500-megawatt power plant.
Jim Skeen, (661) 267-5743
james.skeen(at)dailynews.com
Source: Daily News; Los Angeles, Calif.
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