TOP STORY -- AES wants option to sell power outside the state

Tariq Malik

Powerhouse AES Corp., which is working to turn a pair of defunct

generators at its Huntington Beach site into sources of electricity, will

go before state officials next month, seeking the reconsideration of a

permit condition that would keep its power in California.

AES is set to meet with the California State Energy Commission on July

11 on the matter, though officials with the power plant said the move is

one of preparation.

For the last few months, the power company has been in negotiations

with the state’s Department of Water Resources to keep power produced by

the two generating units in state, a special condition of AES’ operation

permit set by the commission.

“The petition is really a place holder, a way to keep our options open

in case, for some reason, a contract with the [department] is never

signed,” said Ed Blackford, president and site manager of AES’ Huntington

Beach power plant.

Talks with the water resources department have run since March and are

still ongoing despite the petition, he added.

Oscar Hidalgo, a spokesman for the water resources department, said

the agency is still trying to settle on an energy price best suited to

the state’s power needs.

“We haven’t been able to reach an agreement yet, but we have hope,” he

said.

City officials said they were disappointed about hearing of the

petition, especially since keeping the power resulting from the project

in state was a crucial goal for local officials.

AES is retooling power-generating units No. 3 and No. 4, inoperative

since 1995, with plans to add 450 megawatts to its energy production by

August. Energy officials said one megawatt can power 1,000 households,

and the added capacity represents about 10% of the electricity shortfall

expected in California this summer.