Cal-ISO: South Bay power plant can be demolished - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

Cal-ISO: South Bay power plant can be demolished

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CHULA VISTA (CBS 8) - The South Bay power plant can be decommissioned and demolished at the end of this year, according to a letter sent Friday to the company operating the facility.

The letter sent by the California Independent System Operator Corporation (ISO) to Dynegy, Inc., states that lower energy demands in the San Diego area mean there is no longer a need for the plant. Power usage in 2009 was lower than projections made by the California Energy Commission (CEC).

The South Bay power plant had been designated as a "must-run" plant, meaning it had to stay in operation to accommodate peak electricity needs. The ISO's letter states that status will expire on December 31, 2010, clearing the way for Dynegy to tear down the facility next year.

The letter also acknowledges that the must-run designation "caused Dynegy some concern given, among other things, the age of the facilities and the community's long-standing desire and expectation to see the units closed and removed."

The must-run status of the South Bay power plant had also been cited as one of several obstacles to building a new Chargers football stadium on the Chula Vista waterfront.

A hearing on Dynegy's permit status for the facility was scheduled for November 17, 2010. It's unclear if that hearing will still happen.


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