U.S. Feds to Expedite Calif Power Plants

LOS ANGELES -- -

LOS ANGELES -- President George W. Bush has issued a directive aimed at speeding up the site selection and licensing of new power plants in electricity-strapped California. A short statement from Bush issued by the White House said the president had directed "all relevant federal agencies" to speed up the review of permit applications and the decisions on whether or not to approve them. "The federal government should make every effort to work with California and to help its citizens," Bush said in the statement. "I hereby direct all relevant federal agencies to expedite federal permit reviews and decision procedures with respect to the (site selection) and operation of power plants in California." Bush was in Mexico Friday to meet with Mexican President Vicente Fox. The construction of new generators in California has become a top priority in the strategy to end the supply-demand imbalance that has caused wholesale power prices in the West to skyrocket, and has had California under the threat of rolling blackouts for 32 consecutive days. California, however, has already speeded up its permit process. The California Energy Commission announced Feb. 7 it had approved a gas-fired plant in San Bernardino in 10 months rather than the usual 12 months. The possible easing of permit restrictions and environmental regulations has alarmed some environmentalists in the state who are concerned the need for more power will lead to an erosion of air-quality regulations. Bush's statement, however, indicated no roll-back of any regulations. "All actions taken must be consistent with statute and ensure continued protection of public health and the environment while preserving appropriate opportunities for public participation," the statement said. Gov. Gray Davis was scheduled to announce a long-awaited proposal Friday afternoon in which the state would purchase the high-voltage transmission grid owned by the state's two largest utility companies. The deal, which could cost the state billions of dollars, would give taxpayers something in return for a major bond issuance and would provide Southern California Edison and Pacific Gas & Electric with a needed financial shot in the arm. The proposal is aimed at keeping PG&E and Edison solvent while sparing consumers from the major rate hikes that are prohibited by the 1996 state law that deregulated the state's power markets. The proceeds from the sale would allow the companies to privately refinance their current mountain of debt estimated at some $13 billion. Published reports Friday said that Davis' would proposal would, however, include a surcharge on consumer utility bills that would help pay off the bonds that would be used to buy the 32,000 miles of power lines.