Huntington Loses Battle on Generators

The California Energy Commission on Wednesday voted to allow giant power company AES to move ahead with plans to restart two mothballed generators in Huntington Beach even without the company’s guarantee that it would sell the electricity within the state.

The decision permits AES to begin operating the generators next month.

The 3-1 vote marks a defeat for Huntington Beach, which had agreed to AES’ plans only with the company’s pledge that all electricity generated would be used to ease the state’s power crisis.

In granting approval, energy commissioners conceded that the deal does not come without potential harm to the environment.

“We do not know the extent of the plant’s contribution to the transport of bacteria to the beach, which can result in beach closures and the loss of recreational opportunities to beach visitors and commercial opportunities to local merchants,” the ruling says.

State officials said they decided to drop the restriction that AES sell power within California to avoid more delays and help fulfill Gov. Gray Davis’ executive order that the state significantly boost power production over the next year.

“It adds power that will make California’s power grid more secure, and the more power we can get, the more secure we are from rolling blackouts,” said energy commission spokesman Rob Schlichting.

AES originally agreed to the restriction. But the company demanded that it be dropped after negotiations with the state over long-term energy contracts broke down in June.

With no contracts, AES argued it should have the right to sell power produced in Huntington Beach to whomever it wants.

Huntington Beach officials who lobbied hard for the sales restriction said they felt betrayed by the decision.

They said the commission bowed to the demands of a corporation over local concerns.

“AES got exactly what it wanted,” said City Councilwoman Connie Boardman, who testified at the hearing.

“There’s a lot of impacts the residents of Huntington Beach put up with. The energy crisis is the reason this project was approved so rapidly. Now that seems irrelevant. I think it’s a big waste of time.”

An AES spokesman said the company would prefer to sell its power to customers in California. But he acknowledged there is no guarantee the extra electricity will remain in the state.

Councilwoman Debbie Cook said she fully expects AES to sell the power to out-of-state companies.

“They’re going to sell it where they can get the most money,” Cook said.

“If they can sell it outside the state and resell it at a higher rate, then that’s what they’re going to do.”

The two 40-year-old generators, which have been out of service since 1995, can produce enough power to supply 337,500 homes and represent almost 10% of the 5,000 megawatts Davis has said he will bring into service this summer.

AES said the retooling of Unit 3 is 75% complete and it should be on line by Aug. 7, and Unit 4 is 70% complete and could come on line a week later.

AES had also requested a 10-year license to operate the generators.

But the commission on Wednesday sided with Huntington Beach on that point.

The city lobbied for a five-year license and a five-year renewal if the company complies with a host of laws and regulations.