Public Interest Briefs

Center Seeks Puc Review of Out-of-State Power Plants

The Southern California Edison Company and the San Diego Gas & Electric Company propose to spend in excess of two billion dollars to participate in the construction of the nation’s largest coal-fired generating station. The plant would be located on the scenic Kaiparowits Plateau of southern Utah.

Although the cost of the plant would ultimately be borne by the California utility rate-payer, no government agency has reviewed whether such an expensive and potentially environmentally destructive project is necessary for California’s future energy needs,

Neither Edison nor SDG&E has applied, nor do they seem to have any intention of applying, to the California Public Utilities Commission (PUC) for the issuance of a “certificate of public convenience and necessity.” Such a certificate is required before a California public utility may construct an electrical generating plant within or outside of the state.

In response to the failure of the PUC to take any action to review the proposed participation of the utilities in the construction of the plant, Center attorneys have filed a petition on behalf of the Sierra Club to compel the PUC to face up to its illegal responsibility to review the need for the plant.

The petition argues that the California PUC has both the authority and the responsibility to order the utilities to apply for such a certificate–even though the proposed plant would be located outside of California. Otherwise, as more power companies–in California and throughout the nation–participate in out-of-state generating plants to provide electricity to their customers, their action would be taken without review by any public regulatory agency. The result could be the investment of billions of dollars during the coming decade having enormous financial and environmental impact without any assessment of the need for such projects or any public review.

Also critical concern is whether alternative sites for the generation facilities are available. Within a 200-mile radius of Kaiparowits lies the “golden circle” of national parks and monuments–Bryce, Zion, Capitol Reef, Canyon-land, Arches and the Grand Canyon–an area of breathtaking and unique canyons, arches, spires, formations and vistas. A massive power plant such as Kaiparowits would have a critical impact upon this land.

There is a precedent for a state utilities commission undertaking such a review. When faced with precisely the same question as that presented by the present petition, the New Mexico Public Service Commission held that it had jurisdiction to determine whether two New Mexico public utilities should participate in the construction of a nuclear power plant planned in Arizona.

The need for independent review by the California PUC is particularly apparent in the case of Kaiparowits–where critical issues require answers before billions of dollars are invested:

How large will the need for additional energy capacity be in California?

Will the huge monetary investment be worth the enormous cost to the California consumer?

The petition argues that the PUC is the only agency that has the power and the expertise to resolve these questions– and the best interests of the citizens of California and the direction of the state’s energy future will be served by such a review.

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