In the Bay Area, Duke plans to file an application to refurbish its Morro Bay plant. AES, an Arlington, Va., power company, has had two plant proposals on the list for more than a year, including one for South San Francisco, but hasn't filed applications yet. AES said it is working with the city council in South San Francisco and residents on those plans. The company said it hasn't invested enough money that it needs to make a decision on whether to formally file an application. Uncertainty over the price caps is one of the things that could halt plans, Davis said.
All sides agree that it's still important to attract new power generation to the state.
Over the long haul, a greater power supply could help ensure electricity reliability should the amount of power the state can import falls because of heightened demand for energy in other regions of the country. During days when energy use is extremely high, the state imports as much as 7,000 megawatts out of the approximately 53,000 megawatts consumed, according to the California Energy Commission. A larger energy supply could also help stabilize prices for electricity by introducing more competition. The new plants would replace many power plants in the state that are 30 or 40 years old, increasing efficiency and environmental soundness. Bergstrom of Dynegy said planning for a plant in California poses even more barriers than in other parts of the nation.