City OK's plan for power plant construction

This story appeared in the Antelope Valley Press May 31, 2001.

By BOB WILSON
Valley Press Staff Writer  

PALMDALE - The City Council gave a green light Tuesday to plans for construction of a new electric-generating power plant somewhere in the city.

With a unanimous vote, members of the council ratified a 60-day agreement giving Cornerstone Power, a Mississippi limited liability corporation, the exclusive right to seek a site in the city suitable for the construction of a 120-megawatt facility, with the potential to expand to 200 megawatts.

If built, the natural gas-powered plant would generate enough power to serve 120,000 to 200,000 homes.

The right granted the company will allow it "the security of pursuing aggressively the options available for land, access to the power grid, availability of natural gas" and the relevant permits, according to a report by Steve Williams, director of the city's Department of Public Works.

Under the agreement, Cornerstone Power will obtain its land from either the city of Palmdale or its Community Redevelopment Agency; work with the city to obtain all the permits necessary to proceed; and reach the terms necessary to obtain natural gas from the Southern California Gas Co. and tie into the power lines of the Southern California Edison Co.

In a related matter, the council also agreed to enter an agreement for legal services with the Fulbright & Jaworski law firm of Los Angeles.

The council anticipated needing the firm's utility expertise in reaching terms with Cornerstone Power. For those services, the city will pay $365 an hour.

Cornerstone initiated the proposal in an attempt to take advantage of California's recent decision to fast-track the construction of such facilities to increase electricity supplies, Mayor Jim Ledford said after the vote.

Three sites in the city are being considered for the plant, Ledford said, declining to name them before a firm proposal was put together.

This past week, Lancaster's City Council agreed to sell land at Division Street and Avenue H to electricityprovider inc. of Tustin for the quick construction of a 200-megawatt, natural gas power plant.

The Lancaster plant is to be constructed under a special 21-day permitting option available from the California Energy Commission for energy providers who agree to build and go on line by Sept. 30.

No date of operation was given the Cornerstone plant.

Energy generated by both plants would help alleviate the threat of the rolling blackouts that began this past winter because of a shortage of electricity throughout the state of California.

Any power produced would be sent into an electrical grid for statewide distribution. State laws prevent cities from retaining power produced within their borders for their own use.