AES: New Power Plant Would Benefit Community

A modern, significantly smaller promises to benefit every Redondo Beach resident. Unfortunately, concerns have been raised based on factual errors.

Here are the facts, as I see them.

A new power plant is the solution to reinventing the harbor area

A smaller, modernized AES facility would provide the economic means to demolish the existing plant and free up 30 acres for other community uses. It is the most financially viable, straightforward way to remove the structures that block views, reinvent the harbor and dramatically improve the appearance of the site.

A modern plant would be lower, quieter, have a smaller footprint and be at least 30 percent more efficient.

• Related: Complete coverage of AES Redondo Beach

Benefits to Redondo Beach, which are already substantial, would increase significantly, especially when adding the potential uses for the available property. Presently, AES pays $2.1 million in annual property taxes, with $827,000 going directly to Redondo Beach, including $243,000 to the school district.

Opponents make the curious assumption that if AES were to retire the plant, the existing facility would be demolished and the property would become a park or be used for limited commercial activity.

The reality is that anyone who would purchase the property and invest in cleaning up the land would need to build a high density project to earn a reasonable return. But the failed “Heart of the City” initiative made it clear that residents do not want thousands of condos on that site.

Natural gas-fired electricity is not the problem

Recently, there have been some high-profile, yet inaccurate statements about the estimated air pollution from our proposed power plant. The statistics being reported are based on equipment we do not plan to use and an operating profile significantly different than what we expect.

Furthermore, emissions from natural gas-fired power plants are an insignificant contributor to reduced air quality. In fact, the more than 40 power plants in the South Coast Air Basin, which includes all of Orange County and the urban portions of Los Angeles, Riverside and San Bernardino Counties (covering about half the population of California), are responsible for a mere 1.1 percent of particulate matter emissions in the area. We could eliminate all 41 power plants in the area and we would see no material improvement in air quality.

If we really want to reduce air pollution, the best thing we can do is focus on our cars. Transportation-related emissions account for 90 percent of total NOx pollutants and more than 30 percent of total fine particulate matter emissions. That is why there is a big push to move toward electric vehicles and why we need modern power plants.

Opposing new cleaner power plants, which will have an insignificant impact on air quality, just because we don’t like where they are or how they look, is irresponsible and potentially threatens our electricity supply.

Time is on everyone’s side

The growing popularity of iPads, smart phones, home entertainment centers and electric cars are all increasing California’s power needs. As the need for electricity grows and our environmental focus increases, we must embrace clean, renewable energy. That also requires modernizing our older fleet of natural gas power plants so power can still be provided when renewables cannot.

Despite alarmist claims that “time is running out” to influence our plans, developing a new power plant is a long process. Very long, in fact. And the truth of the matter is the clock hasn’t even started ticking. The clock won’t start until AES submits an application to the California Energy Commission. Then, a lengthy and rigorous public review and permitting process will begin. City leaders, as well as local residents, will have ample opportunity to study the facts and weigh in on what’s best for Redondo Beach.

The plant now under construction in El Segundo took 10 years to make its way through the permitting process

Renewable energy needs modern power plants

All of us in California want to set a new standard for clean, renewable energy with wind and solar taking a more central role in energy production. But what happens when the sun goes down or the wind stops blowing?

Power cannot be stored in any meaningful way. If you want electricity 24/7, you need to produce it 24/7. The best way to balance renewable energy sources is with an abundant supply of clean, safe and reliable energy using fuel sources that can be controlled. Natural gas-fired electricity production is one of the cleanest forms of energy that is produced. The amount of electricity from a natural gas plant can be precisely adjusted and modern plants can be started and stopped within minutes which enables them to maintain a consistent, dependable supply of electricity to balance renewables.

Keeping our options open

The new plant we are proposing would become operational to serve needs well after 2020. So, studies opponents cite that look at the time between now and 2021 completely miss the point.

Determining what is needed to ensure a reliable supply of electricity in the future is complex and subject to numerous assumptions that can change quickly. But based on the studies we have reviewed, we are confident that pursuing a permit for a new plant in Redondo Beach is the right thing to do. That is why we are willing to invest millions of dollars over the next few years in the permitting process.

But ultimately, the plant won’t get built unless it is needed.  AES is a publicly traded company that must answer to its shareholders. Our shareholders will require a long term contract from an energy supplier to approve the investment and financing of a new plant. And Southern California Edison will only commit to such a contract if its customers, including Redondo Beach residents, need the electricity from our new plant.

We are confident a modernized plant could be the catalyst and economic driver for a revitalized waterfront, while at the same time supporting California’s clean energy goals.  AES looks forward to a productive, fact-based dialogue about this opportunity as our plans progress.

Eric Pendergraft is the president of AES Southland.