Palmdale power plant may be built

Palmdale officials are considering hiring Inland Energy Inc. to guide the city through the permit process. Inland consultants, who assisted with the development of a power plant in Victorville in 2003, estimate it will take about two years and $5.5 million to acquire the necessary permits.

"What is driving this is economic development," Assistant City Manager Steve Williams said. "If we can provide cheaper power to the businesses and industry we already have, they can become more competitive."

Having a reliable source of energy also would aid in attracting new businesses to the region and would also help ease the statewide energy crunch, city officials said.

"Energy is one of our top concerns for the state of California," Councilman Richard Loa said. "We were caught short a couple of years ago because of a lack of development of power plants. This is forward-looking."

The City Council will address the issue when it meets Monday night. Inland is proposing to do the work for 5 percent of the operating profit of such a plant.

If Inland is retained, the company plans to pursue permits for a plant that would operate two 165-megawatt gas-fired turbines and a steam turbine capable of generating 170 megawatts. Such a plant would require 20 to 25 acres.

In the two years of going through the permitting process, city analysts could study what arrangement for using the permit would best serve Palmdale's interests, Williams said.

Possibilities include forming the city's own municipal utility, such as those operating in Los Angeles, Glendale and Burbank; assigning the permit to a company; or selling the permit outright.

In addition to generating power, the plant could play a role in efforts to expand the capacity of the wastewater treatment plant that serves Palmdale. The power plant would require 2.2 million gallons of water a day, and tertiary-treated sewage water could be used.

Inland Energy has been involved in the development of an 830- megawatt power plant in Victorville that began operating in 2003. The company also signed an agreement with the city of Victorville in March to pursue permitting for a 500-megawatt power plant.