Edison Plant Faces Closure

April 01, 2003|Nancy Rivera Brooks

The huge coal-fired Mohave Generating Station in Arizona, which serves customers in Southern California, Arizona and Nevada, probably will close at the end of 2005, Edison International said Monday in a filing with the Securities and Exchange Commission.

The 1,580-megawatt power plant, which produces enough electricity to serve more than 1 million homes, faces an uncertain supply of coal and water, Edison said. In addition, the utility consortium that owns it must make $1.1-billion in pollution-control investments if the plant is to operate past 2005.

Southern California Edison owns 56% of the Mohave plant and operates it. The Los Angeles Department of Water and Power owns 10% of the plant.

The cash generated by the plant by the time it is expected to close will be less than the $88-million carrying value of the plant on Edison's books as of Dec. 31, causing the Rosemead firm to incur an impairment charge of $61 million in the fourth quarter of 2002, Edison said. The company expects to recover the $61 million through a regulatory proceeding.

An Edison spokesman said the company is still trying to resolve disputes surrounding Mohave's coal and water supplies.

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