Redondo Beach, Utility Reach Pact

Taking a first cooperative step toward ridding the coastline of a longtime eyesore, Redondo Beach and an energy company Thursday announced an agreement to scale back the massive power plant built half a century ago by the Southern California Edison Co.

AES Corp, which bought the power station from Edison last year, has agreed to reduce the size of the plant, starting with the demolition of the three oldest of its eight smokestacks. In addition, the firm will work with the city to develop a master plan that would free up a large chunk of the 52-acre site for recreation, ocean-side homes and tourist attractions.

In return, city officials have dropped plans to put a utility tax on the municipal ballot, a move which, if approved by voters and upheld by the courts, could have cost the power company $4 million a year.

The agreement marks a radical change for the city, which has been battling for more than a year to have the power plant dismantled and the land freed up for a seaside downtown and recreation area.

“I’m really pleased. This gives us the opportunity to have a much scaled-down power plant that will clean up the environment and free the land for redevelopment,” said Mayor Greg Hill, who led the charge to get rid of the power plant.

Just how scaled down the power plant will be remains in question. Although city officials predicted that the facility could be reduced to as little as 12 acres, AES officials declined to speculate on the ultimate size of the plant.

“We think there is an opportunity to significantly reduce the size and impact of the plant while still allowing us to do some expansion,” said C.J. Thompson, general manager of AES’ Redondo Beach operation. He said new technology will enable the firm to produce more electricity on a smaller, less obtrusive site.

“It’s a win for both sides. We can continue to run our business and yet decrease its impact on the community,” Thompson said of the agreement reached this week after months of sometimes strained negotiations.

Thompson said he is “pleased that the city is taking the long view” in working with the power company to clear the way for new development while AES makes its modernization plans. “We didn’t want a contentious relationship, so we felt this was the best way to go,” Thompson said.

But he made it clear that AES has no intention of closing down the plant altogether, as some in the city would like.

That means the massive transmission lines will continue marching up the hill behind the plant for now. In addition, Edison still has the option of buying back a 22-acre fuel-storage and power-switching area.