Desalting Plant Bill Vetoed by Wilson

Gov. Pete Wilson vetoed legislation Wednesday that would have allowed San Diego Gas & Electric to bypass regulatory hurdles and upgrade an aging generating plant in Chula Vista that the County Water Authority might one day use to power a desalination plant.

Wilson said the legislation was “not prudent” because it failed to ensure that SDG&E;’s customers would receive the “best possible rates.” Wilson also said the legislation would create a precedent by exempting SDG&E; from competitive bidding that is mandated by the Public Utilities Commission.

Wilson’s comments echoed fears expressed in May by opponents of AB 1013, which was introduced by Steve Peace (D-Rancho San Diego). Then, opponents argued that the legislation would make it possible for the two utilities to make an end run around the PUC bidding regulations.

SDG&E; and the County Water Authority initiated a $250,000 study in August to determine the economic, environmental and engineering feasibility of the proposed desalination plant, which, if built, would produce up to 30 million gallons of potable water daily. That study will continue, spokesmen for the two utilities said Wednesday.

“We’re still interested,” authority spokesman Jim Melton said Wednesday. “The final decision depends on the outcome of the feasibility study, so (the veto) doesn’t change anything at this point.”

“I assume we’ll continue to look at the project, and that we’ll continue to work with the water authority,” SDG&E; Vice President Ron Fuller said.

The proposed desalination plant would draw brackish water from wells at SDG&E;’s existing power plant on San Diego Bay. The desalination plant would use excess energy that would become available if SDG&E; completes its planned upgrading of the aging plant.

AB1013 would have allowed SDG&E; to speed up the project by about a year by eliminating a the PUC-mandated competitive bidding process. The utilities suggested that the elimination of competitive bidding would chop about a year off of the project.