Otay Not OK, Says Wood

By Published On: May 22, 2004

The California Public Utilities Commission is expected next week to vote on three proposed decisions that would approve San Diego Gas & Electric?s grid reliability request for proposals?including controversial plans to buy the output of Calpine?s Otay Mesa plant and purchase the Palomar plant from an unregulated affiliate. Commissioner Carl Wood floated a proposal last week that rejects SDG&E?s bid to acquire Otay Mesa?s megawatts. Two other plans up for a vote would approve the contract. Wood casts doubt on whether Otay Mesa would be a good deal for ratepayers. He notes that it is hard to evaluate the true costs of the deal since they are based on a ten-year contract. In addition, Wood pointed out that Otay Mesa?s 2008 on-line date does not meet the 2007 time line for projects needed to meet SDG&E?s grid reliability needs.

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