The two units, which are owned by AES Corp., are 40 years old. AES has been given a 10-year permit to run the units and plans to invest $150 million to re-power them. The generators will provide nearly 10% of the 5,000 megawatts Governor Gray Davis wants to bring into service in the upcoming months. The commission granted the permit with the stipulation that all power generated by the units must be sold within California.
The AES units are the first generators to be approved under the fast-track process that the governor has ordered in light of the energy crisis. The approval has sparked protest from city officials and Huntington Beach residents who fear the generators will cause health hazards and environmental damage.
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