Restarting of 2 Generators in O.C. OKd

Granting the governor’s wish that power plants receive speedy approval, the California Energy Commission cleared the way Thursday for the restart of two idled generators that will double the output of a plant in Huntington Beach.

The vote came despite concerns from city officials and nearby residents that potential environmental and health risks associated with the restart were not adequately examined by regulators.

The commission’s action allows AES Corp. to run the two controversial units for at least 10 years, provided that a midterm review finds that operators are taking steps to limit any harm the plant may cause to seawater quality and marine life.

The commission also required the company to sell all the power generated by the units, enough to supply about 337,500 homes, within California--a restriction unprecedented in the state.

Some attorneys questioned whether the panel had the legal authority to place such a restriction. But Commissioner Robert Laurie said that while the limit “may not be good long-term policy,” the state’s power emergency warrants it now.

The commission’s unanimous vote capped weeks of arduous negotiations involving AES, the state and Huntington Beach officials, who called the 10-year permit “a major disappointment.” AES officials pushed for the 10 years on grounds that a shorter time frame made the economics of the project iffy.

City officials preferred a five-year permit, noting that the company’s track record--it once paid a $17-million fine for allowing too much pollution to spew from its Long Beach plant--raises doubts about its future performance. The commission’s staff also favored five years, with the possibility of a five-year extension.

“They have not exactly been great corporate citizens,” Matt Lamb, project manager for Huntington Beach, said of AES. “This is a grossly inefficient plant that has been mothballed and they’re basically kick-starting it. We don’t think it deserves 10 years.”

But Gov. Gray Davis--who has publicly pushed the commission to approve plants quickly--hailed the decision. “That’s good news. That’s supply we’re counting on,” he said.

The two Huntington Beach units are 40 years old and have been idle since 1995. But the energy crisis has made the old valuable once again, and AES plans to invest $150 million to repower the generators--once scheduled for demolition.

The units represent almost 10% of the 5,000 megawatts Davis has said he would bring into service this summer to avert an electricity shortage. Recent estimates, however, suggest the governor’s pledge was overly optimistic.

Time Frame Still Uncertain

And while both Davis and the Energy Commission are expecting the Huntington Beach project to come on line in August, AES Southland President Mark Woodruff said Thursday that it’s unclear whether the units would be up and running that soon.

The AES project is among a handful receiving fast-track approval under the governor’s executive order earlier this year requiring expedited review of such plants. It’s the first restart to be approved.

In normal times, a 450-megawatt project such as the one approved Thursday might have taken a year’s worth of study, public hearings and other scrutiny, said Claudia Chandler, a commission spokeswoman. Today’s expedited review shrinks that to just 60 days.

That clearly rankles some Huntington Beach residents, who, in testimony before the commission, wondered whether emissions, ocean pollution and other threats had been thoroughly studied.

“I think it’s almost outrageous what’s being foisted on the public,” said Rich Lloyd, who lives about a quarter mile from the plant. “What relief are you going to give to all these people, all these schoolchildren, who have to breathe these emissions for 10 years?”

Huntington Beach Councilwoman Shirley Dettloff said she too was troubled by the fast-track licensing process. “We’re taking a risk as a city,” she said. “If a price has to be paid, our citizens will be paying that price.”

Critics are alarmed by a UC Irvine study concluding that the plant--which now uses and discharges about 300 million gallons of seawater each day as coolant--may combine with ocean currents to attract sewage released miles offshore. Many residents suspect the plant contributed to pollution that caused repeated beach closures in 1999.

Acknowledging the concerns, the commission required AES to spend $1 million to study whether water quality is at risk. The company also must spend another $2.5 million to monitor fish deaths caused by its seawater intake system. If too many white croaker, queenfish and other species become trapped and die, AES may be required to modernize its equipment, commission officials said.

Other complaints have focused on the noise, smoke and smells produced by the plant. Jane Riley, who lives nearby, plans her outings with son Daniel, 6, around the thick clouds of yellow-brown smoke that are a part of everyday life.

“I try to avoid it. I take a look at which direction it’s going,” Riley said. With two more units fired up, a bad situation will only get worse, she fears.

In other action Thursday, the commission approved a 95-megawatt “peaker” plant in the Central Valley city of Hanford. Peaker plants can produce large amounts of power in short bursts, and the governor is counting on such facilities to make up about 40% of California’s electricity deficit this summer.

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Times staff writers Seema Mehta and Dan Morain contributed to this story.