PG&E plans power plant

PG&E Corp., the San Francisco-based parent of Pacific Gas & Electric Co., on Tuesday proposed building an $850-million natural-gas fueled power plant in Alameda County, near Oakland, to meet rising electricity demand.

The utility acquired the Tesla Generating Station site and development rights July 17 from closely held ESI Energy, PG&E said Tuesday in a Securities and Exchange Commission filing. The utility wants state regulatory approval by Jan. 29 to pass on the development cost to its customers.

The 560-megawatt plant needs to be operating in the first half of 2012 to meet forecast power demand, PG&E said. California, after opening its electricity markets to competition, last year said it would allow utilities to build their own plants when necessary to maintain reliable delivery. PG&E said the plant would fill gaps left by projects that were terminated or delayed.