California officials approve new power plant

California energy officials have approved the construction of one of the largest new power plants to be built in the state since electricity deregulation.

New Power Plant near Tracy, Calif., Wins Energy Panel's Approval The new plant, to be built near Tracy, will produce enough energy for 1,000 homes.

The $700 million, natural-gas-fired Tesla Power Plant project will generate 1,120 megawatts of electricity when it is completed in about two years.

That's about the time officials have predicted the state may be facing power shortages.

"In 2006 and beyond, we're going to need more new generation to keep an adequate surplus to avoid rolling blackouts, so this will help toward that goal," said California Energy Commission spokesman Chris Davis.

The commission approved the plant on a 4-0 vote. It will be built in eastern Alameda County by Midway Power, a Florida Power and Light subsidiary, and will use reclaimed wastewater from the city of Tracy for cooling. The company is looking to sign up a buyer for the power and has not set a groundbreaking date.

Since California deregulated its electricity system in 1996, the energy commission has approved 49 power plants totaling 20,140 megawatts -- 24 of those plants, which produce 8,311 megawatts, are now operating.

The state's biggest power plants, those producing over 1,000 megawatts, include Duke Energy's 1,060-megawatt Moss Landing expansion, which boosted the plant's total output to 2,500 megawatts in 2002, and the 1,124-megawatt La Paloma power plant built near Bakersfield last year.

San Jose Mercury News, Calif.