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Morro Bay Faces Power Plant Conundrum

Opportunity to relocate aging facility that blocks views of Morro Rock means siding with an energy company against environmentalists.

The State

January 20, 2003|Sally Ann Connell, Special to The Times

MORRO BAY, Calif. — Drivers heading north up California 1 depart the majestic coast at Pismo Beach and, for about 25 miles, turn into the heart of San Luis Obispo County. Their reward is reaching Morro Bay and Morro Rock, one of the most recognizable landmarks on the California coast.

Now, residents see an opportunity to improve views of the rock from town and from the Pacific Coast Highway and coincidentally freeing up prime real estate on the oceanfront Embarcadero. But that means -- unusual for this eco-conscious region -- siding with a power company against environmentalists.


For The Record
Los Angeles Times Thursday January 23, 2003 Home Edition Main News Part A Page 2 National Desk 15 inches; 563 words Type of Material: Correction
Morro Bay -- An article in Monday's California section gave the incorrect power output for the Duke Energy electric plant in Morro Bay. The plant produces 1,000 megawatts of energy and may be increased to 1,200 megawatts. The story incorrectly stated the output in watts. The same mistake was made regarding a power plant in Moss Landing, which produces 2,500 megawatts, not watts, of power.


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The City Council and nearly two-thirds of locals (in a nonbinding referendum two years ago) favor the same plan as Duke Energy. The company's ocean-cooled power plant, with its 45-story-high smokestacks, has marred the skyline and blocked views of Morro Rock for about half a century.

Duke Energy wants to expand capacity from 1,000 watts to 1,200 watts at a location just north of the current power station, but in a facility with a much lower profile. Stacks would be 145 feet tall, rather than the current 450 feet, and smaller buildings would be built away from the town's waterfront.

In a land swap, the city of 10,000 would acquire 13 acres at the current location, which could be turned into a park or, perhaps, waterfront shops and restaurants. Morro Bay also would receive a windfall in taxes and fees.

Project Faces Opposition

But Duke is threatening to kill its plans if environmentalists and regulatory agencies continue to push for change -- particularly a conversion to air cooling instead of ocean cooling.

The change is favored by many because it would mean no more ocean water would be pumped into the plant, where it cools turbines, and then returned to the ocean, where it can harm fish, crabs and the larvae of other marine life in the Morro Bay Estuary.

Officials at the Charlotte, N.C.-based company have threatened not to go ahead with the $800-million upgrade -- killing the hopes for additional power and the tax incentives -- if they cannot build the lower-profile plant north of the current location.

A Duke Energy spokesman, Pat Mullen, said the company strongly believes that it must have saltwater cooling to make the project work. Although there is a debate about how much additional money a dry-cooling plant would cost, Mullen said the company is factoring another $120 million into the project.

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