Publication Date: Wednesday, February 11, 2004
A power plant in Palo Alto?
A power plant in Palo Alto?
(February 11, 2004) City utilities weighing options for gas-fired plant
by Bill D'Agostino
Could a city that regularly creates controversies over medium-scale housing projects find room inside its borders for a power plant?
The City of Palo Alto's utility department, ever hopeful, believes so, and is actively considering building a gas-fired plant in the city's perimeters, an early prospect that is still sure to raise the hairs of some development-cautious citizen activists.
At its meeting Wednesday night, the city's Utility Advisory Commission could recommend that the City Council fund a study looking at the challenges and possibilities of constructing such a plant.
"There's a lot of steps to go through to get any sort of plant approved for construction," Commissioner George Bechtel warned, cautious of the hullabaloo such news could bring.
Included in the proposed year-long study -- estimated to cost between $300,000 to $500,000 -- would be a search for land for a plant.
"You're not going to put that in Palo Alto anywhere very easily," Bechtel acknowledged.
"Let's face it -- if they build a power plant in Palo Alto, there's going to be all sorts of complaints they'll have to deal with," said Michael Closson, executive director of Palo Alto-based environmental group Acterra.
That would be good, Closson said, because the plant would then become an environmental model. He hoped the city would consider building a solar-powered plant, instead of a gas-powered one.
"We have still a lot of untapped solar potential here," Closson said.
Newer gas-fired plants, Bechtel pointed out, are more efficient than older ones.
"Building something inside the city is not going to create an ugly nuisance," he said.
The plant is proposed to supply approximately 20 to 40 percent of the city's power, or 50 megawatts. The plant could cost as little as $50 million or as much as $150 million, but would likely result in cheaper electricity prices and improve reliability of service.
The closest plant that the city gets its power from is in Tracy, a less affluent city located more than 60 miles away.
"We're depending on PG&E and others to transmit the power to us," Bechtel said. "That costs us money."
The main reason the city is considering such a controversial proposal is that vital long-term power agreements are finishing at the end of the year. The city is currently negotiating new contracts, but is also looking for ways to become more self-sufficient. Between 17 to 56 percent of the city's power for next year is still yet to be purchased.
Facing the same end-of-the-year deadlines, the City of Santa Clara got permission to build a 150-megawatt plant last year. The gas-fired plant is being built on 2.86 acres near Highway 101.
The facility is scheduled to open towards the end of this year, and will cost $155 million, according to news reports.
Palo Alto had hoped to partner with Santa Clara on a plant.
"We were disappointed last year when they decided to go ahead by themselves," said Bechtel, who added that Palo Alto may still partner with another nearby municipal power supplier, like Alameda.
The Utility Advisory Commission meeting begins 7 p.m. on Wednesday night inside the City Council chambers (250 Hamilton Ave.).
Bill D'Agostino can be e-mailed at bdagostino@paweekly.com
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