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Southern California Edison's Electric Generating Plant - Sol
CITY OF HUNTINGTON BEACH CITY COUNCIL COMMUNICATION Ul kpwV(r- M fiNb RfPPvIc-e P�s '�VeD TO: Honorable Mayor and City Council Members FROM: Ralph Bauer, City Council Member DATE: November 3, 2000 SUBJECT: "H" Item for November 6,2000, City Council Meeting AES Request for Plant Expansion STATEMENT OF ISSUE: We have been made aware that the AES Corporation, current owner of the former Edison plant, wants to expand the plant substantially. The rational being that there is an energy shortage in California. I am concerned that the unattractive appearance of the plant, the unwillingness of AES to pay a fair utility tax, and the petitioning by AES to reduce the accessed valuation, all operate to the determent of the residents of Huntington Beach. RECOMMENDED ACTION: It is requested that the Council direct the staff to determine what regulatory and legal options the City has-to prol-1-ibit of� N6eofttfal the proposed expansion. RB:cf c: Connie Brockway Ray Silver F (2) 04/27/98 - Council/Agency Agenda - Page 2 3. (City Council) Streets And Highways Of Southeast Huntington Beach (15 Minutes) Communication from the Acting Public Works Director regarding street maintenance. Staff Presentations - Daryl Smith, Acting Director of Public Works Department Public Participation - Questions and Answers 4. (City Council) Southern California Edison's Electric Generating Plant (Sold To AES Corporation) - Pacific Coast Highway Between Newland And Magnolia Streets (15 Minutes) Communication from the Community Development Director regarding the sale of Southern California Edison's Huntington Beach Power Plant on Pacific Coast Highway between Newland and Magnolia Streets to AES Corporation. Staff Presentations - Melanie Fallon, Director of the Community Development Department Public Participation - Questions and Answers 5. (City Council) Wetlands Topic - Property Located At Pacific Coast Highway Between Beach Boulevard And Santa Ana River And Possible Purchase Of Property By California Coastal Conservancy (15 Minutes) Communication from the Community Development Director regarding the Wetlands Topic relative to Local Coastal Program Amendment No. 2-94 (Zone Change No. 88-18/Code Amendment No. 93-8) White Hole Area, 232 acres located on the inland side of Pacific Coast Highway between Beach Boulevard and the Santa Ana River and 35 acres along Pacific Coast Highway between Magnolia and Brookhurst Streets. Also regarding the : California Coastal Conservancy's consideration of purchasing 35 acres of property designated Coastal Conservation located along Pacific Coast Highway between Magnolia and Brookhurst Street. Staff Presentations - Scott Hess, Senior Planner, Community Development Department Public Participation - Questions and Answers 6. (City Council) Orange Sanitation District Sewage Plant Update (15 Minutes) Staff Presentations - Doug Steward, Engineering Manager, O.C. Sanitation District Public Participation - Questions and Answers (2) jA CITY OF HUNTINGTON BEACH Inter Office Communication Community Development Department TO: Honorable Mayor and City Council FROM: Melanie Fallon, Community Development Director VIA: Ray Silver, City Administrator DATE: April 21, 1998 SUBJECT: Background material for April 27, 1998 Southeast Community Meeting-Southern California Edison Power Plant Attached are three pieces of information for your use in the upcoming discussion with the Southeast Community regarding our activities and concerns regarding the sale-of the Southern California Edison Power Plant to the AES Corporation. These materials include: 1. September 22, 1997 memo to the City Council outlining the City's activities as of that date, as they pertained to the sale of the SCE Power Plant. i 2. November 24, 1997 information on the AES Corporation. i 3. February 26, 1998 memo to the City Council summarizing the meeting with the City and representatives of the AES Corporation. I will be presenting a video show at the community meeting outline the process, the City's concerns and our strategy regarding the divestiture of the power plant. Attachments MSF:jr (498msf15) f C � I c ATTACH�%IENT 1 ®� CITY OF HUNTINGTON BEACH Inter Office Communication Community Development Department TO: Mayor Ralph Bauer and.Members of the City Council VIA: Michael T. Uberuaga, City Administrator l �- FROM: Melanie S. Fallon, Director of Community Development David Biggs,Biggs, Director of Economic Development DATE: September 22, 1997 SUBJECT: PROPOSED SALE OF SOUTHERN CALIFORNIA EDISON'S HUNTINGTON BEACH POWER PLANT AT PACIFIC COAST HIGHWAY,BETWEEN NEWLAND AND MAGNOLIA STREETS --AN UPDATE The purpose of this memo is to give you an update of the issues associated with the sale of Southern California Edison's (SCE)Huntington Beach Power Plant. Power Plant Sale 1 On March 21, 1997, staff advised you of the proposed power plant sale as part of the SCE divestiture of all fossil fuel fired electric generating stations. The divestiture, in turn, is a component of a larger federal and state restructuring and deregulation of the electrical energy industry. As you will recall, on May 30, 1997, SCE representatives appeared at the Council's study session to provide information and to answer Council Members' questions regarding the divestiture. The California Public Utilities Commission(CPUC) is operating under the mandates of AB 1890 which became law.in January 1997,which require SCE to divest itself of the power plants, through auction sale,by December 31, 1997. The CPUC commissioned an Initial Study as a step in the CEQA process, held workshops, and invited input from interested parties -- including the City of Huntington Beach. With the input received from Council members at the May 30, 1997 Study Session, and from an Economic Development City Council Committee meeting, staff developed a list of SCE plant mitigations/enhancements which would help make the facility more palatable to the City. This list included dedication and possible improvement to Newland Street,major landscaping improvements and acquisition of a 1.2 acre parcel owned by the City which is landlocked by SCE land. With these issues staff,with consultant assistance(from Robert G. Fisher and Associates),monitored the environmental review process,met with other cities in the same situation as ours,participated in workshops and provided comments on the Draft Initial Study(attached). City staff recommended the CPUC require an Environmental Impact Report, pointing out the following: SCE Update Page No. 2 1. The Huntington Beach plant is being designated a"must-run" facility for the foreseeable future, while other plants may be decommissioned. 2. The Huntington Beach plant will be operated by unknown, for-profit corporations almost certainly at higher levels of production, which_ will result in greater air pollutant emissions, noise, traffic and fuel spills. 3. The preponderance of the site will be split off(a Lot Line Adjustment application has been filed by SCE) and retained by SCE after the plant is sold. After two years,the surplus property may be sold for industrial/commercial purposes, although the City's General Plan and zoning contemplate a single site operated as a public utility facility--rather than as multiple industrial operations. 4. An Environmental Impact Report would allow the consideration of alternatives to reduce or eliminate adverse impacts, as well as mitigation measures. Nevertheless, the CPUC opted for a Negative Declaration. That document has been received by staff. It concludes that there are no significant adverse impacts from the sale of the Huntington Beach plant, and no mitigation measures are provided. Since no mitigation measures were provided there was no avenue in the sale of the facility for the City to legally address our list of issues, therefore, staff focused in on possibly conditioning the two (2) discretionary applications which are in our offices at this time. The two (2) applications are the Edison Lot Line Adjustment and the Conditional Use Permit for the Huntington Beach Wetlands Conservatory Wildlife Care Center. Edison Lot Line Adjustment located at 21730 Newland Street(LLA 97-3) This application is a request to adjust lot lines for three(3)parcels owned by Southern California Edison to allow for selling of the properties as part of the required divestiture. Wildlife Center at 21900 Pacific Coast Highway (CUP No 97-35) This application is a request by Huntington Beach Wetlands conservancy to indefinitely extend the existing temporary Conditional Use Permit No. 92-1 for construction of a wildlife care center. In addition, on August 11, 1997,Mayor Bauer convened a meeting with SCE and City staff to discuss the City's concerns with the sale of the facility and the need to make improvements to their project hopefully on a voluntary basis,because they are concerned corporate citizens of Huntington Beach. In summary, SCE resisted the idea that we could or should condition the Lot Line Adjustment, but indicated a willingness to consider dedication of Newland Street right-of- way and some assistance on landscaping to help shield the Wildlife Center from the view of Pacific Coast Highway drivers (the Wildlife Center property includes all Pacific Coast Highway frontage in front of the Edison Facility). It was agreed there should be a follow-up meeting to discuss details, including what the City envisioned in the way of landscaping and its estimated cost. SCE Update Page No. 3 In the interest of time and the absence of available in-house staff, a$2,500 contract was arranged with a landscape architectural/design firm to prepare a preliminary landscape concept plan and cost estimates. The current estimate is$148,000 for construction of a berm similar to that along Pacific Coast Highway between Brookhurst and Magnolia,with mostly locally.natural plant material and some tall growing, evergreen trees.. However, lower cost solutions are also being developed by the consultants and staff. On September 12, 1997, staff met with representatives of SCE and the Wildlife Center to discuss the matter. SCE offered to dedicate the Newland Street right-of-way and to seek a$50,000 contribution for landscaping from its employees association. City staff was told there were no SCE corporate funds available to assist, nor could monies generated from the sale of the plant be used for this purpose. SCE and City staff agreed that we did not have a legal basis for conditioning the Lot Line Adjustment. Based on these statements the following was agreed to at the conclusion of this meeting: 1. SCE will voluntarily agree to dedicate Newland Street right-of-way to the City as long as it is not a condition of the Lot Line Adjustment. (See attached September 16, 1997 letter to Melanie Fallon from Peter Lersey.) 2. Wildlife Center representatives acknowledged the need for a landscape buffering of its facilities which include the entire Pacific Coast Highway frontage. It was agreed that staff and consultants would meet at the site to explore landscaping solutions. 3. City will prepare a letter to Edison to become a record in the divestiture process that will state: The City is impacted by visual blight of the facility and additional landscaping will be required by any future permit requested by SCE and/or future operator; and • Newland Street will be required to be improved as a condition of any future permit requested by SCE and/or future operator. MSF:DB:kjl Attachments xc: Ray Silver,Assistant City Administrator Les Jones, Public Works Director Daryl Smith, Superintendent,Parks,Trees&Landscape Howard Zelefsky,Planning Director Scott Hess, Senior Planner Bob Fisher, Consultant (997MSF5) 24 Nov 1997-AES Wins Bid to Acquir...ower Plants Totaling Nearly 4,000 MW http://www.aesc.com/PR/Q7407-1997Southern.html FOR IMMEDIATE RELEASE AS AES WINS BID TO ACQUIRE THREE POWER PLANTS TOTALING NEARLY 4000 MW FROM SOUTHERN CALIFORNIA EDISON ARLINGTON, VA, November 24, 1997 -The AES Corporation (NYSE: AES) announced rjlli- today that it won a bid to acquire three natural gas-fired, electric generating stations from Southern California Edison for approximately $781 million. The facilities were auctioned as V :�k:. part of Edison's divestiture of all of its gas-fired generating facilities prior to the 11;t-;;1 as restructuring of California's electricity industry. Completion of this acquisition will bring AES's ownership interest to nearly 30,000 megawatts worldwide. The three plants, all located on the southern California coast, are Alamitos (2083 MW), 11-vif} Redondo Beach (1310 MW) and Huntington Beach (563 MW). Each of the plants has been designated a "must-run facility" because station output is critical to maintaining the jr��;'t4=1is reliability of electric supply in the region. Consequently, they initially will operate in part f,�irftr3 under agreements with the Independent System Operator being established through electricity restructuring. Pursuant to California's electricity restructuring law, Edison will remain under contract to operate and maintain the facilities for two years. Completion of the acquisition is subject to a number of conditions, including the receipt of California Pubic Utilities Commission approval and successful implementation of the new California electric spot market, called the Power Exchange. Mr. John Ruggirello, President of AES Enterprise, stated, "With California's market opening on January 1, Alamitos, Redondo Beach and Huntington Beach are important assets both for ensuring electrical system reliability as well as for their ability to generate cost-competitive power. Their generation value is further supported by the significant level of interest among energy wholesalers and retailers to secure long-term agreements for the output of these plants." Mr. Dennis Bakke, President and CEO of AES, commented, "We are delighted to make such a major acquisition in the early stages of US electricity restructuring. These plants give us an excellent opportunity to serve the California market and complement the substantial growth in non-US assets experienced by AES in the past few years." Highlights of AES's business development successes in 1997 include the following: • In November, AES was awarded a concession for 230 MW of hydroelectric capacity by the Province of San Juan, Argentina. • In October, AES acquired approximately 90% of Companhia Centro-Oeste de Distribuicao de Energia Eletrica ("AES Sul"), an electric distribution company in the state of Rio Grande do Sul, Brazil. • In October, AES and partner acquired 1,384 MW of electric and 1,000 MW of heating capacity in East Kazakstan. • In September, AES began construction on the AES Parana project, an 830 MW gas-fired, combined cycle power plant with an expected capital cost of$444 million. • In September, AES raised $75.5 million to finance the 288 MW Mt. Stuart power facility in Townsville, Australia. • In July, AES raised approximately $325 million in Senior Subordinated Notes and approximately $350 million in a common stock offering. • In June, AES funded Yangcheng, a $1.6 billion joint venture to build, own and operate a 2,100 MW mine-mouth, coal-fired power plant in China. 1 of 2 11/25197 09:46:22 24 Nov 1997-AES Wins Bid to Acquir...ower Plants Totaling Nearly 4,000 MW http://www.aesc.com/PR/Q7407-1997Southern.html • In June, AES and partners won a bid for 14.41% of Cemig, an integrated electric utility serving the State of Minas Gerais in Brazil. • In May, AES announced the completion of the amalgamation with AES China Generating Co. with AES. • In April, AES, along with its partner CEA, won a bid to acquire two electricity distribution companies, Eden and Edes, serving the Province of Buenos Aires, Argentina. • In April, AES won the right to build, own and operate a 600 MW gas-fired, combined cycle plant in Uruguaiana, Brazil. • In March, AES completed a combined public offering of common stock and term convertible securities ("TECONS"), yielding net proceeds to the Company of approximately $390 million. • In February, AES entered into an agreement to acquire all of the international businesses of Destec Energy, Inc., consisting of five plants in operation and construction representing approximately 950 MW (based on AES's net equity ownership to be acquired), and numerous projects in various stages of development. • In February, a subsidiary of AES raised £112.5 million of non-recourse project financing for its 230 MW (net) gas-fired combined cycle plant in Barry, South Wales, United Kingdom. • In February, AES announced plans to build a 720 MW (net) gas-fired combined cycle plant in Pennsylvania to supply electricity to a subsidiary of GPU, Inc., pursuant to three restructured power purchase agreements. • In January, AES acquired an additional 2.4% interest in Light Servicos de Eletricidade S. A., a 3,800 MW integrated Brazilian utility, bringing AES's total interest to 13.75%. • In January, AES won a bid to build, own and operate a 484 MW (net) gas-fired combined cycle power plant in Merida, Mexico. AES is a leading global power company that currently owns or has an interest in eighty-eight power facilities totaling almost 25,000 megawatts in the United States, Canada, Australia, Argentina, Brazil, Dominican Republic, Pakistan, the Netherlands, Hungary, Kazakhstan, China and the United Kingdom. In addition to having assets in excess of$7 billion, the Company has more than $5 billion of projects in construction or late stages of development. AES is dedicated to providing electricity worldwide in a socially responsible way. For more information contact: investingaaesc.com .................................................................................................................................................................................................................... Copyright(c)1996 The AES Corporation.All rights reserved.Reproduction in whole or in part in any form or medium without express written permission of The AES Corporation is prohibited.AES and the AES logo are trademarks of The AES Corporation. To report a problem or for comments about this site contact: webmaster i)aesc.corn 2 of 2 11/25/97 09:46:22 AES-Values http://www.aesc.com/values/default.html Principles and Practices A core part of AES's corporate culture is a commitment to "shared principles". These principles describe how AES people endeavor to behave, recognizing that they don't always live up to these standards. The principles are: • Integrity-AES strives to act with integrity, or"wholeness." The Company seeks to honor its commitments. The goal is that the things AES people say and do in all parts of the Company should fit together with truth and consistency. • Fairness- AES wants to treat fairly its people, its customers, its suppliers, its stockholders, governments and the communities in which it operates. Defining what is fair is often difficult, but the Company believes it is helpful to routinely question the relative fairness of 3 alternative courses of action. JII fr t'llni!)JI • Fun - AES desires that people employed by the Company and those :'y_i{it> people with whom the Company interacts have fun in their work. AES's goal has been to create and maintain an environment in which each person can flourish in the use of his or her gifts and skills and thereby enjoy the time spent at AES. aili_i�t_il: f: ,�Jr1''`=� • Social Responsibility -The Company believes that it has a responsibility to be involved in projects that provide social benefits, such as lower costs to customers, a high degree of safety and reliability, and a cleaner environment. AES recognizes that most companies have standards and ethics by which they operate and that business decisions are based, at least in part, on such principles. The Company believes that an explicit commitment to a particular set of standards is a useful way to encourage ownership of those values among its people. While the people at AES acknowledge that they won't always live up to these standards, they believe that being held accountable to these shared values will help them behave more consistently with such principles. AES makes an effort to support these principles in ways that acknowledge a strong corporate commitment and encourage people to act accordingly. For example, AES conducts annual surveys, both company-wide and at each location, designed to measure how well its people are doing in supporting these principles--through interactions within the Company and with people outside the Company. These surveys are perhaps most useful in revealing failures, and helping to deal with those failures. AES's principles are relevant because they help explain how AES people approach the Company's business. The Company seeks to adhere to these principles, not as a means to achieve economic success but because adherence is a worthwhile goal in and of itself. In order to create a fun working environment for its people and implement its strategy of operational excellence, AES has adopted decentralized organizational principles and practices. For example, AES works to minimize the number of supervisory layers in its organization. Most of the Company's plants operate without shift supervisors. The project subsidiaries are responsible for all major facility-specific business functions, including financing and capital expenditures. Criteria for hiring new AES people include a person's willingness to accept responsibility and AES's principles as well as a person's experience and expertise. Every AES person has been encouraged to participate in strategic planning and new plant design for the 1 of 3 11/25/97 09A8:22 AES-Values http://www.aesc.com/values/default.html Company. The Company has generally organized itself into multi-skilled teams to develop projects, rather than forming "staff' groups (such as a human resources department or an engineering staff) to carry out specialized functions. AES Team "Structure" Many people have asked us about our team structure and how it works. To begin with, there is no one person in charge of teams and there is no Human Resources department. Teams are the basis of our structure, and they encompass the four values of our company. They are fluid; many people are members of more than one team at one time. A team is somewhat autonomous; all decisions about a project are made within that team, with final say granted to that team. Decisions are made not from the top-down, but from the bottom-up. Furthermore, responsibility is pushed to the lowest level possible, encouraging everyone to be part of a decision. As a result, each team member views the project in terms of a whole. Colleagues and team members must trust each other to follow through to the best of their ability. Because people are what make up AES, we have decided not to resort to an organizational model. Instead, we give you the following comments from AES people regarding teamwork. In general, AES teams work extremely well in both achieving a common goal and having fun while doing so. The following ideas provide insight on what makes teams work well and what can stimulate true and productive teamwork. ��) "Teams imply friendship; not only the ability but the -, desire to work together. Starting with the wonderful a ,= example set by the original AES team, Roger and ;, Dennis, working together in small groups has been a natural way to get big things done while preserving the dignity of each person." Tom Tribone "There are two reasons why teams are successful at AES: +3V the type of people we have here and the environment in W01", � , which they work. People at AES tend to be independent i i .h and thrive in a loose environment where roles and RM f responsibilities are not always clearly defined. The environment at AES is one where responsibility is pushed down to the lowest level possible, encouraging everyone to take ownership for not only their piece of the project, but for the project in its entirety." Michael Cranna Copyright(c)1996 The AES Corporation.All rights reserved.Reproduction in whole or in part in any form or medium without express written permission of The AES Corporation is prohibited.AES and the AES logo are trademarks of The AES Corporation. in 1-1 O L•: I; To report a problem or for comments about this site contact: 2 of 3 11/25/97 09:48:23 AES Fact Sheet-Oct 97 http://www.aesc.com/factsheet.html Get a Printable Version The AES Corporation Summary Fact Sheet Introduction roil} The AES Corporation, founded in 1981, is one of the world's leading electric power companies. The Company is dedicated to supplying safe, clean, reliable electricity to meet V global energy needs. AES owns or has an interest in eighty-three plants totaling 23,459 megawatts in the United States, Argentina, Brazil, Hungary, Kazakstan, Pakistan, China, the United Kingdom, Canada, Australia, the Netherlands and the Dominican Republic. In addition to having assets of$3.8 billion, the Company has more than $5 billion of projects in construction or late stages of development. AES Capabilities AES has 15 years of experience developing and operating large, complex power f t191 lrt iA!)ji generating facilities. AES has placed more than $5 billion of financing with commercial -atilt t .i� banks, export credit agencies, multilateral financial institutions and public markets. The Company reliably operates gas-fired, hydropower, and solid-fuel plants, and employs f.;. , .t;!IL.g1,.7 roughly 31,000 people around the world. Customers include U.S. and foreign utilities and tJ:ill �1i1:i foreign governments. 1i1�_ ! i�+ t�r• !'`� History of AES Growth [� 1996 1995 1994 1993 1992 Assets(millions) $3,622 $2,341 $1,915 $1,687 $1,552 Revenues(millions) 835 679 533 519 401 Net Income(millions) 125 107 98 71 56 Earnings per share($/share) $0.81 $0.71 $0.66 $0.49 $0.40 Prospects for Growth at AES AES has three U.S. projects in advanced stages of development, in Puerto Rico, Pennsylvania and in California (in partnership with Sonat). In addition, AES also has projects in India, the United Kingdom, Hungary, Kazakstan, Australia, Poland, Uganda, Mexico and several in China in advanced stages of development. Business development activities are ongoing in more than 35 countries around the world. AES'Asset Base Distribution Com anies ... . ......:»..:.:..: :» :NN ..»H::..,. ::::.. Com anY Location Customers . Network .:: :: ,,: ..... ...... ............................................................................ ..199.5..Sal.e.s..(GWh !., Americas .........................................................................,....................................................................... Cemi Brazil 4,200,000 '274,000 35,905 :..................... ................. Brazil 2,750,000 174,500 21,170 :Eden Argentina 270,300 15 300 3,572 Edes < ' Argentina 128,500 4,600 1,181 ...... .......... AES'Asset Base cont'd 1 of 3 11/25/97 09:47:11 AES Fact Sheet-Oct 97 http://www.aesc.com/factsheet.htmi ... . M .................H.. . ....................» ........H..:..... ----:..::.k..........�..�..-.,. - e .... t Generating Plants Location Fuel AE (�t rest Capacity S ..... ....:::.:.......................................... .......................................... ....MW)........,.....................).............. In Operation: :Dee_water TX-U.S.A. i Pet Coke �14r 3 100 :Beaver Valle PA-U.S.A. Coal :12�5 80 ?Placerita CA-U.S.A. z Gas 1� 12 0 1100........................ ::::»::::::::::::::..:::: :Thames CT.U.S.A. - Coal �181 100 < :Shad Point OK-U.S.A. Coal 320 100 :Hawaii µHI-U.S.ACoal 180� 100 3....... :Kilroot N. Ireland Coal/Oil520 ;47 :::...::..........::::::::::::::::::::::::.......,.......:::::::::::.... ;Belfast West...........................................N. Ireland......... .................Coal...............3240.....................i47..................... .......................................................................:.................... ............................................. � :San Nicol6s Argentina Coal/Oil/Gas P50 :69 :Cabra Corral Argentina Hydro ji02 i 98 :El Tunal Argentina ~..... .H dro 110 __ 98 yCili Miser Mountain China Hydro ,26 51 i :Medwa En land Gas ;660 25 ,Sarmiento µM _Argentina Gas 133 i98u µ Ullum Argentina. a Hydro.H»» r45. w ».98...................- u Tontes Nova-Li ht Brazil z Hydro 144_ H 14 ry :Ilha dos Pombos-Light Brazil Hydro r164 ....... 14 .........................................::::::......:................ :::::::::::::::::. .. . ....... ............. �.................... :Nilo Pecanha:Light ) Brazil Hydro 380 i14 ...................::.. . .................::::::............::::..------............::; ..Y..,..........:::::::� .......................r :Pereira Passos-Light........ ..............Brazil............. ...............Hydro...............3100.....................114......................... Borsod Hungary Coal 1171 i65 :Tisza II Hungary Oil/Gas 3860 96 - ;�_.�..� 3 ____ r 3 :Tiszapalkon a Hun a Coal 250 396 :Ekibastuz Kazakstan Coal 4,000 370 :Wuxi Tin Hill China Oil 63 Wuhu Grassy Lake:..:..:.:.::.....:......:: »::::China.:.,. ::.» »»:.:::.Coal ::::.:.:—j..50:...... . 25 <Yangchun Sunsprin� £H China Oil 115 25 :Indian Queens.......................::::::} England.::::::::::-:::::::::..•:::::::Oil 1.40100 :Los Mina Dom.Republic >.,................Oil j235100 ...............::::::::::::::::::::::::::::::::::::::: ..:::...... ...................... .....................::::::::::::::::::........::::::::::::::::::::: ... :Hazelwood Australia Coal :1600 .20 :CEMIG(35 plants) Brazil Hydro/Thermal i5,068 113 ;Chengdu Lotus City China Gas J48 i35 :Kinston Canada Gas 110 ';50 <Jiaozou Aluminum Power China Coal 250 :70 :Hefei ProsperitV Lake China Oil ,11�5 �70 Tau Power(6 plants) Kazakstan Hydro/Coal ,1,38� 4 :85 :Total in Operation :18,702 :Under Construction: Aixi Heart River China Coal ',50 70 Lal Pir............................... .... . Pakistan...�.. Oil... »i337 ....... . 190 ................a €PakGen Pakistan Oil 337 Go ;Barry Wales, UK Gas 230 100 ' :Warrior Run MD-U.S.A. Coal 180 100 ....:::.........::...: _ ............::.::.........::::::::::::::::::::........::::::::::::::::.......:::::::::::::::::::::......:::::::::::::::::::::::::::::::; :Elsta Netherlands Gas (405 :50 Yangcheng Sun City 3.... China Coal ... 32,100.......:. 125....::..:..:.::.. 3 3 Wt.Stuart Australia Kerosene ;282 8 1100 r-88 :Parana Ar entina Gas i830 ,67 :Total under Construction ,4,75- ' :Total in Operation and Under Construction i23,459 October, 1997 Many of our documents are available in PDF format. Before downloading, ret Jt€rabat, . y make sure you have Acrobat(R) Reader. You can pet Acrobat(R) from Re,3er. ' Adobe Systems Incorporated. 2 of 3 11/25/97 09:47:13 AES Annual Report 1996-Financial Review: Fianacial Position http://www.aesc.com/AR/financial/fiinancial.htmi � 'r 7• - r�' - r'`''Kk '� 'r ,__ . � ��y�, sg� ��'' Y x7 1 z gy - C S p 3i �v7 P_ Financial Position .- .3....3.n ,_.[ .. .-. • .�. :..r>fi... ...}.>.....-,� .. ,.L:... ..�5_n:'n.. .. ._. _iZ.x.. T':.:. k. ,..�v.. ...£...-.f .. ._.. _:. �'�� t��� "'�i -,�➢ k � �,za, '_� �,w+, t3`"ar r Ky F'�-v Y rim `-��s�".x+� .�' �"grr- r :c`-,:a ' � _.� 'sue � dd ��,r y�y�-:. Cz__ } _ ,,, �� --thy -_.,F.h r•, - ,T..u'`� -- ;.: M -. _ c Annual At December 31, 1996, AES had working capital of$120 million as _;:•. Period compared to $218 million at the end of 1995. The decrease is Horne primarily attributable to decreased balances of cash and short-term investments, increases in accounts payable and accrued liabilities and increases in the current portion of borrowings under the Revolver and project financing debt, offset, in part, by increases in inventory, AES accounts receivable, and deferred income taxes. James Luckey Home AES Thames Property, plant and equipment, net of accumulated depreciation, was Connecticut,USA $2.220 billion at December 31, 1996, up from $1.550 billion at the end of 1995. The net increase of$670 million (43%) is primarily attributable to the acquisition during 1996 of AES San Juan, AES Tiszai and AES Ekibastuz, the continuation of construction activities at AES Lal Pir, AES Pak Gen and AES Warrior Run, and the commencement of construction activities at Jiaozou and AES Barry. Other assets increased $555 million (161%)to $900 million primarily due to the Company's purchase of and undistributed earnings from an 11.35% interest in Light, payments to debt service reserves, payments for deferred financing costs associated with a higher level of debt financing, reimbursable payments for contracts related to a project in development, and intangible assets acquired through the purchase of AES San Juan. Project financing debt, net of repayments, increased as a result of additional borrowings associated with the Company's purchase of an 11.35% interest in Light and additional construction borrowings associated with AES Lal Pir, AES Pak Gen and AES Warrior Run. A significant portion of the AES Lal Pir and AES Pak Gen loans, associated with equipment purchases, will be borrowed and repaid (as scheduled in the future) in Japanese yen. The anticipated electricity prices under the related power sales contracts (to be received beginning with commercial operation of those plants) also include a yen component designed to correlate with the yen-based financing. Other notes payable (non-current) increased $325 million (260%) to $450 million as a result of the issuance of the $250 million of 10 1/4% Notes and increased borrowings under the Revolver of$125 million that are due in excess of one year, offset, in part by the conversion of the $50 million of 6 1/2% convertible subordinated debentures. milli 1111511 1 of 1 11/25/97 09:49:39 Yahoo! Finance-AES http://quote.yahoo.com/q?s=aes&d=vl W. AAIg Y n h Chat with The Street.com's Jim Cramer about the market outlook for'98 - starts at 8pm ET/ 5pm PT ..:.............................................. Get Quotes Basic ;• > > sy rebel.__cokor) Portfolios: george - [My Yahoo View Create New Portfolio Log Out 3? a -._xi3flrNF A'..,dti a+7,7#Srr b 1 ,ig(.{+'� `q a QUOTES � ix n' Click to trade or open an account.-Important Disclaimer New! Views: Basic feditl - DayWatch - Performance - Fundamentals- Detailed - [Create New Viewl Tue Nov 25 12:48PM Eastern U.S. Time -- U.S. Markets close in 3 hours 12 minutes. 'Symbol Last Trade Change !Volume:' More Info <o;ES 12:26PM<38 3/$?+3/$:+0.99%1173,800 Fs ar�rrt F SEC I:ys. Select a Symbol for a detailed quote. Quotes delayed 15 minutes for Nasdaq, 20 minutes otherwise. COOL JOBS 0 YAHOO `t'ah+ oI Finance Horne --------------------- Non-Tables Version — Download Spreadsheet Format keys a1 -::,,._y3'!ZW RECENT NEWS Uttr°;' �'{ n- Click to trade or open an account.-Important Disclaimer Tue Nov 25 AES CORRECTED - SoCal Ed gets 2.65 times book Mon Nov 24 AES AES tC:buy 3 Edisoon power plants Mon Nov 24 AES SoC,al Ed gets 2.65 ttirnes boal,, for plants Mon Nov 24 AES AES Wins Bid to Acquire Three Power Plants Totaling Nearly 4000 MW from Southern California Edison Fri Nov 21 AES Arclentina's C I ellone seeks Ar"-S contract e.yersal Wed Nov 19 AES Brazil's Cemiq to be privatized in H2 1998-report Mon Nov 17 AE S AES Awarded 230 MW Hydro Concession in Argentina Tue Nov 11 AES Raytheon Engineers & Constructors Announces Projects Valued At More Than $100 Millon Fri Oct 24 APS AES Announces Pricing of Combined $800 Million Private Placements Thu Oct 23 AES S&P Rates The AES Corps Senior Subordinated Notes, Convertible Preferred Stock B+ Copyright© 1997 Yahoo!All Rights Reserved. See our Important Disclaimers and Legal Information. Quote technology by T1BC0, a Reuters company. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI,). Quote data provided by Reuters Limited. Market Cap and Avg Vol provided by Market Gilide. Data and information is provided for informational purposes only, and is not intended for trading purposes.Neither Yahoo nor any of its data or content providers(such as Reuters, CSI, and Zacks)shall be liable for any errors or delays in the content, or for any actions taken in reliance thereon. The trading services which users may access through the links on this page are services of the listed independent brokerage companies.In order to use these services,you need to have an existing account with such brokerage company or you will need to set up such an account up with such brokerage company. Yahoo provides customized links to selected brokerage companies for your convenience only. Yahoo is not a registered broker-dealer and does not endorse or recommend the services of any brokerage company. The brokerage company you select is solely responsible for its services to you, the user. Yahoo shall not be liable for any damages or costs of any type arising out of or in any way connected with your use of the services of the brokerage company. 1 of 2 11/25/97 10:00:19 AES Annual Report 1996-Financial Review: Summary Financial Data http://www.aesc.com/AR/financial/summary.html c, �'. ...;?r.,r. .. ro Y ..,.w .. .>x > _ .. r. ... a„ .....F„�.,. a,✓.. ._.. ..sc ._ .� �: .r"r. ....> .- "" __1.. ..- 5 1•?i,L .F' F 4Yaeh --_ ^+i - t"1I'" - .3 �, i� Sk 't .A _ ! i` �i"._ - ,. L. Z Ll tl III ary Fl-nancial Data. Annual (in millions, except per share data) P.?ioi't t Home I - For the Years Ended 1996 1995 1994 1993 1992 December 31 AES Home Don Householder Statement of Operations Data AES Beaver Valley Pennsylvania,USA Revenues $ 835 $ 679 $ 533 $ 519 $401 Operating costs and 557 426 297 323 246 expenses Operating income 278 253 236 196 155 Income before income taxes, minority interest, and 193 167 145 89 66 extraordinary item Extraordinary item - - 2 - - Net income 125 107 100 71 56 Net income per share: Before 1.62 1.41 1.30 0.98 0.80 extraordinary item Extraordinary item - - 0.02 - - Net income per share 1.62 1.41 1.32 0.98 0.80 Dividends per share - - - - 0.58 0.39 common stock As of December 31 1996 1995 1994 1993 1992 Balance Sheet Data Total assets $3,622 $2,341 $1,915 $1,687 $1,552 Revolving bank loan (current) 88 50 - - - Project financing debt (long 1,558 1,098 1,019 1,075 1,146 term) Other notes payable (long 450 125 125 125 50 term) Stockholders' equity 721 549 401 309 177 :rtai.r.ka .uni.:c.rs:�%"t__, �i- :np oJv'a '�`,k:es 1►: 1 of 1 11/25/97 09:52:23 AES Annual Report 1996-Financial Review: Consolidated Balance Sheets http://www.aesc.com/AR/financial/balsheets.htmi Consolidated Balance Sheets Annual (in millions) . Repo Horne December 31 1996 1995 ................................................................................................................................................................ AES ��::✓�ii..in,:�?.:'!:.... Home Assets Bacso Fanos and Fanosi Istvan Current Assets: AES Tisza Cash and cash equivalents $ 185 $239 Hungary Short-term investments 20 58 Accounts receivable, net 95 54 Inventory 81 36 Receivable from affiliates 9 11 Deferred income taxes 65 21 Prepaid expenses and other current assets 47 27 ................................................................................................................................................................. Total current assets 502 446 Property, Plant and Equipment: Land 30 9 Electric and steam generating facilities 1,884 1,594 Furniture and office equipment 14 11 Accumulated depreciation and amortization (282) (222) Construction in progress 574 158 Property, plant and equipment, net 2,220 1,550 Other Assets: Deferred costs, net 47 32 Project development costs 53 41 Investments in and advances to affiliates 491 48 Debt service reserves and other deposits 175 168 Goodwill & other intangible assets, net 52 37 Other assets 82 19 ................................................................................................................................................................ Total other assets 900 345 Total $ 3,622 $2,341 Consolidated Balance Sheets, continued See also: Notes to Consolidated Financial Statements. ret:r:r?is cunlcri:':�ji use=. �s 3up�al_ra tl^.i'j?ar.,:!?.►E 2 of 2 11/25/97 09:50:12 AES Annual Report 1996-Financial Review: Consolidated Balance Sheets http://www.aesc.com/AR/financial/balsheetsc.html Consolidated Balance, Sheets Annual (Continued) Re-sort ono--tee- (in millions, except par values) b ........................................................................................................................................................... s: December 31 1996 1995 ' s` AES ................................................................................................................................................................. Albino Dos Santos Home Dias and Liabilities and Stockholders' Equity ClaitomPacielloDe eu Current Liabilities: Lighht,t,Brazil Accounts payable $64 $ 33 Accrued interest 25 12 Accrued and other liabilities 95 49 Other notes payable - current portion 88 50 Project financing debt- current.portion 110 84 ................................................................................................................................................................. Total current liabilities 382 228 Long-Term Liabilities: Project financing debt 1,558 1,098 Other notes payable 450 125 Deferred income taxes 243 170 Other long-term liabilities 55 13 ................................................................................................................................................................. Total long-term liabilities 2,306 1,406 Minority Interest 213 158 Commitments and Contingencies - - Stockholders' Equity: Preferred stock (no par value; 1 million shares authorized; none issued) Common stock ($.01 par value; 100 million shares authorized; shares issued and outstanding: 1996 - 1 1 77.4 million; 1995 - 74.8 million) Additional paid-in capital 360 293 Retained earnings 396 271 Cumulative foreign currency translation adjustment (33) (10) Less treasury stock at cost (1996 - .1 million shares; (3) (6) 1995 - .3 million shares) Total stockholders'equity 721 549 Total $ 3,622 $ 2,341 See notes to consolidated financial statements. 2 of 3 11/25/97 09:50:34 ; o JA .' City of Huntington Beach 2000 MAIN STREET CALtroRNIA92648 DEPARTMENT OF ECONOMIC DEVELOPMENT Director 714/536-5582 Redevelopment 7141536-5582 FAX 714/375-5087 Housing 7141536-5542 April 8, 1997 Julie Halligan 'Via Faesitnile: 415/896-0332 California Public Utilities Commission e%Environmental Science Associates 301 Brannan Street, Suite 200 San Francisco, California 94107 Dear Ms. Halligan: The purpose of this letter is to provide comments and input regarding the potential environmental consequences of SCE's planned divestiture of its power plants in Southern California, especially the Huntington Beach plant. The City of Huntington Beach understands the potential benefits to consumers of the deregulation of the electric bower industry and look forward to its ultimate implementation. However, there are concerns and issues which we believe should be examined through the environmental review process regarding divestiture. While we appreciate the need fur electrical power plants, this use can be viewed as undesirable and as a blighting influence on the local community, especially the plant in- Huntington Beach which sits on a prince oceanfront site. City staff believes that land uses other than power production should be examined as a project Alternate under the EIR. Since these plants have been described as inefficient and are operating well below capacity, perhaps the reuse of these plan sites for othc;higher and best use opportunities would yield a greater return to SCE upon sale_ As we understand the process, power consumers will be responsible for reimbursing SCE for v.fiatever"stranded" costs result frorn the divestiture. Certainly, the CPUC would want to ensure that these"stranded" costs are r:unimi2ed, and this may result from reuse of the sites rasher than continued use as power generating facilities. Julie Halligan April 8, 1997 Page Two Since SCE's plan is to sell only the physical plant and not the land, and if these plants continue to be uneconomic in a deregulated enviromnent even for a new owner, perhaps the EIR shoved examine the possible cumulative impacts under this scenario. Will SCE be compensated for these facilities more than once? (I) they will be paid by the new generating plant operator, whether this new operator is successful or not; (2)they will be allowed to recover stranded costs from consurners; (3) since SCE does not plan to sell the urderl} ng fee interest to the land upon which the generating stations sit, they will ultimately be able to redevelop or sell this property in the future_ In addition, since only the physical plant will be sold, should the EIR address other uses such as the tank faimi which was originally developed to support the plant. This tank farm is to be operated as an independent business unit and in the future may have no relation whatsoever to the original generation facility. Perhaps this change should not be "grandfathered" under the original CPUC site approvals or it should be subject to the City's nonnal land use entitlement process. One option might be to allow for the operation of these associated facilities for a limited period or perhaps the use of the associated facilities should be Iimited to only meeting the needs of the adjacent generating facility and included in the plant sale. In our meetings vith SCF and their attorneys;they indicated a desire to reparcelize its holdings in Huntington Beach to permit the sale of the generating plant. This reparceli2ation should be examined as part of the EIR process. AJso, the City is looking at its ability;to condition the creation of new parcels in order to address and mitigate certain outstanding issues V,rhich result from the operation of the plant. Finally, another Project Alternate the EIR should look at is the groupings for the plants. and wiry the various plants have been bundled together for sale in the manner proposed by SCE. In particular, the City of Huntington Beach would like to know what alternatives there are to having the Huntington Beach Plant in the local reliability bundle. Since tine local reliability bundle plants must continue to be operated as power plants even sifter We, this limits our ability to consider other lard uses. Specifically, there may be other plants where its continued operation would result in lesser on-going environmental impacts and as such would be. a better choice to be included in the local reliability bundle. Once again, we understand there may be benefit to our community by having the local reliability plant remain in our community. However, we look to the EIR to help us and the CPUC to make an informed decision. 04%11) 97 THU 14:48 FAX 7143741648 CUD ADMINISTRATION QIUU Julie Halligan April 9, 1997 Page Three Thank you for the opportunity to provide you this initial input at the start of the environmental review process. Please feel free to contact either David Biggs at (714) 536.5909 or Melanie Fallon at (714) 536-5632 should you have any questions or need clarification on the issues set forth in this letter. Sincerely yours, David C. Biggs Melanie Fallon Director of Economic Development Director of Community Development xe: Honorable Mayor and City Council Michael T. Uberuaga, City Administrator Ray Silver, Assistant City Administrator Les Jones, Public Works Director Ron Hagen, Community Services Director Mike Dold?r, Fire Chief d3vidUenmr epue Z.doc J ATTACHMENT 3' CITY OF HUNTINGTON BEACH Inter Office Communication Community Development Department TO: Honorable Mayor and City Council FROM: Melanie Fallon, Community Development Directorl*Gr y /G _&L_ VIA: Ray Silver,Assistant City Administrator DATE: February 26, 1998 SUBJECT: Meeting with Representatives of AES,Inc. the Purchasers of the Southern California Edison Power Plant at Pacific Coast Highway and Newland Street A meeting was held on February 5 to introduce AES to the Mayor and key staff members. The get-acquainted meeting was hosted by the Acting City Administrator. In addition to Mayor Dettloff, Council Member Garofalo was also present. Representing AES were: • John Ruggierello,Vice President • Clem Palevich, Project Director • Rod Martin,Project Manager Mayor Dettloff advised AES and SCE of concerns raised by representatives of the South East Huntington Beach Neighborhood Association that, according to Greenpeace report on the Internet, AES has some serious environmental and regulatory problems with their operations elsewhere. She said that she looked forward to AES becoming a welcome presence and good corporate citizen in Huntington Beach, and would like the Council and community to learn more about the company and its intentions. Mr. Ruggierello described the history and geographic reach of his company. He said AES was founded by two former U.S. Department of Energy officials interested in the possibilities of deregulation of the utility industry and the potential for energy conservation to insure adequate supplies of electrical power. The company now has vast holdings in electricity generating facilities across the U.S. and around the world. Mr. Ruggierello discussed the company's interest in the environment,the communities in which they operate, and social issues. Page Two Mr. Ruggierello declined to participate in a proposed Council study session until after escrow closes(probably late March). He said there were no current plans to modernize the plant or expand operations until more study is made of the market. (AES also is acquiring the Long Beach/Alamitos SCE Redondo Beach plants). SCE is obligated by the sales agreement to operate the plant as a part of a two-year transition program. We were told that existing staff are likely to be offered an opportunity to transfer to AES, and that the number of employees would not likely change. SCE is selling only the land on which the basic footprint of the plant is located. The oil storage tanks,the Wildlife Care Center and the adjoining wetlands will remain in SCE ownership. Neither AES nor SCE had information to offer about the future of the various parcels. City representatives inquired as to whether AES would be willing to explore improvements in the plant that would diminish the visual blight to the City's coastline. AES representatives were not prepared to make a commitment,but they indicated they always intend to be a good neighbor wherever they operate. They expressed an interest in learning about the community,but do not intend to have a corporate management presence in Huntington Beach, other than the plant's operations supervisor. Mr. Palevich will be the contact person for the corporation. He is based in San Francisco. Mr. Martin operates out of their plant in Placarita(near Newhall). Staff invited AES representative to follow-up with meetings on specific land use and environmental issues and to make a presentation to the full Council at a study session. They said they would be back in touch once the escrow closed. Staff is seeking information on the assessment value of the property to determine what tax increase may be due the City. Staff will also re-invite AES to a study session once escrow is closed. (G:admnitr98/298ms4) SEP .1' '97 15:43 AT SEkVICE P•2%4 Clty of; Huntington Beach 2ir00 MAIN STREET CALIFORNIA 92848 . DEPAATMENTOF OOM14tt+D1'Y DE'VEWPMfltt P%M*)Q $36•sz7t , Jul3 2, 1997 Brice Kanesbiro and Martha Sullivan,Co-Project Mana$ers CWifomia Public Utilities Commission *` nvironmental Science Associates .34L13rannan Street, Suite 200 - .f� SXl Francisco, CA 94107 Ikc& Southern California Edison's.App&-ation16-11-M to Sell 12 Poiver GAS Comments of City of Hnndngion.,Reach on the Draft Initial Study Dear:Mr. Kaneshiro and Ms. Sullivan: ` Thank you for.providing the.City of Huntington Beach with a copy of the Draft.Initial Study.(DIS) the-opportunity.to participate in the process of evaluating the proposed power�lanr divestiture. The ty. bas taken advantage of every opportunity to learn about the proposal-and its potential impacts;on the t . City,,•and to make its concerns known to the CPUC and its consultants. Specifically;City representatives: • : Attended the"Croup Agency Consultation"Hosier.by Public Affairs Management on March 28, 1:997; t • Submitted a letter dated April 8, 1997,to the CPUC's Julie Halligan identifying concerns for ..consideration in an Environmental.Impact Report(EIR); s k .. .. Participated in the two public workshops in.Pasadena'on June 12 and 30, 1997; and Held discussions with Edison,Neon Haibor and ESA representatives during;the MW,•June period_ like.City's Apri18, 1997,letter assumed ail EIR wautd be prepared and identified City concerns and . project altematives that should be considered in an EIR. No reply to that letter has been received,,but�ve assume it was considered by ESA in preparing the DIS,and is part of the ofI"iciil record. This letter W submitted in response to the invitation in the CPUC letter of June 3, 1997,to patties of record and potentially affected agencies. ' .':After reviewing the DIS and attend 4g the two workshops,-the City of Huntington Beach concurs with •I}the-.eonclusion of the DIS that the proposed.divestiture.could degiade the qualitp of the enviroTaent, quality in particular; that although mitigation measures may exist to reduce or eliminate,many of the potentially significant impacts,there are issues that require additional information and/or further a aaly j s .:to determine-whether significant effects will:result,and whether they can be mitigated. SEP 17 '97 15:44 AT V'„)R SEP.VICE July 2, 1997 -Page No.Two Sificall , with respect to.the Huntington Beach facility,we note the anal :is of air basin im 1 P� Y P� � Y .� . . Pact.1 potential on DIS p.4.5.50(a copy is attached for easy reference). On pp. 4.5.53 and'4.5.54,the D notes the exposure of"local receptors"(including-Huntington Beach residents to.inereased local • . 1� P .) pgllutant concentrations due to increased station operations"above levels that would be reached if l9dison were to retain the plants in the restructured electric industry"(Le., without divestiture).. t Mie City takes issue with the DIS in two particular conclusions. On page 4.1 A 1,4.1.12.andj4A.17 he analysis leads the reader to the conclusion that divestiture would not present a potential for signific t adverse impacts with respect to local laud use/environmental plans. In fact, the contrary is true. 'Ih divestiture proposal by Edison includes tho splitting of site ownership and oprrafioa The areato retained by'Edison,or its subsidiary pipeline transmission company,would sdrve as a backup oil st ge site:in the event of natural gas supply problems, but only for a relatively short transition period,.and1 m. accordance with agreements with the plant buyer,which agreements are confidential. Edison woul4 be free to sell the property to other parties for the spectrum of uses provided in applicable zoning regulations. However,the existing.site has an integrated use,with setback requirements,maximim lot coverage,and access and parking provisions related to the overall operation. Edison's proposed lot split and potential sale of the property could aggravate the resolution of existing inadequate adjacent stt improvements,entranceways and landscape screenings. An EIR or MitigatediNegative Declarations would provide the opportunity to more fully address this issue and provide ad. quate mitigation measures. For example, instead of splitting the.ownership,Edison could lease back with option to re- acquire the area in which oil storage facilities are located,and workout an agreement with the City 1�0 correct the deficiencies at the site before the lease expires or a parcel snap is submitted in contempla ion of We to a third party. For these reasons,the City of Huntington Beach concurs with the determination of CPUC.staff on ptge 5.1 that either an EIR or Mitigated Negative Declaration'tivill be required_" The City hereby requests to be notified of the subsequent environmental analysis,heaving and decision: .. asalang Process so that we may fully participate. If you have questions about this City position,please.cor lact me at(714)536�5271. • •i Zelefsky Director HZ:kji 3 Attachment (XL?746) 'i. SEP 17 '97 15=45 HT Y,„IR SERVICE P.4i4 Huntington Beach .' Annual Gross Capacity factors for 199Z-96 ranged from 15.5 to 20.6 percent for Units 1.4 (Edison, 1992-1996). Unit 5 is a combastion turbine and the capacity for that unit has ranged I from 0.2 to 0.7 percent and U limited by its South Coast AQMD permit to the*umber of hours the unit may be operated(1300 hours per year): There is considerable capacitor at this.plant that has not been used in recent years. Table 45.16 shows the SERASYM model predictions for the' net potential increase that could occur beyond those expected from restructuriri. In relation to j. the significance criteria cited above,a new divested,owner that operates the plant at maximum, reasonable output would exceed the criteria for NOx.ROC,and PM10. Additiphal modeling would be needed to determine whether the increased CO emissions would be A4ignificant impact. The South Coast AQMD has>nd gated that..tb�Clean Air Plan for the air basin iwas developed j' g the future operation of the Hnatingtoa Beach power plant at historic leevels. The: t District has also indicated that went the plant to operate at maximum output,thin resnlimg emissions would extend the emissions used for developing the attainment straragy for ozone compliance. Operating permit conditions for Unit 5 isapose a limit on the operational hours of the unit(1300 hours per year). Because of this limitation.Unit 5 can be expectbd to hmctin no '- differently under divestiture and should cause nio significant impact. However,,recent historical usage of Unit 5 indicate that it has not tra,ditioaally been used at anywhere near`lhis operational. s level. The District arrafiament strategy for Units 1-4,'however;assumes that the NOx 1 . . t . concentration limits are subject to the SCAQMD's RECLAIM policy for NOx which uses air. basin wide historical NOx emission levels and:an assumed yearly reduction rate to achieve air Quality goals. While the RECLAIM policy will insure that NOx emissions will cause no e significant impact within the air basin,under divestiture,new owners could,by obtaining more ' reclaim credits or through changes to NOx emission,.operate the plant at higher levels beyond those expected for other air poUumats in the SCAQMD's Clean Air Plan. The unexpected increase in plant operations which could occur from-divestiture,above wbat is expected from restructuring,would jeopardize the future attainment of the 03(because ROC Ievels would ti increase.CO,ROC,and I?M10 standards and would be a potentially significant impact resuhmg �� ... from divestiture. Long Beach .!tbe Loag Beach power plant consists of seven combustion va-bines and two steam turbine Due to plant design Huse ?. .:generator's• p g� system's�functiort.aa one effective operatiopal trait. Anal . Gross Capacity factors for this unk for 1992-%ranged from 2.04 t4 6.6 percent�Edisoo,1992- 1996). The plant is limited by its South Coati AQMD permit to the overall mono ly generating ' 1 capacity.of 34%. Table 4.5.17 shows the SERASYM model predictions for the net potential .. incmasse that could occur under divestimi beyond that expected from restructuring. In relation to.the significance criteria cited above,a new divested owner that operates the plants at JWdal Shady forSowhem Cdlfomla Mx—0wrWoVs Favtroa+�eo�a[Sdowe AAWLaa { AppllraSoR Na A4.11-04d 4-550 mgrf23 1997 ## SEP-17-97 09. 53 FROM- . ID■191-1024999 PAGE 2r• .J SOUTHERN GAIIFORNIA EDISON An EVZON INTEKNAVOSA4.C w-p2k September 16, 1997 Ms. Melanie S.Fallon Director of Community Development City of Huntington Brach 2000 Main Street P.O. Box 190 Huntington Beach, CA 92649 RE: Southern California Edion's Divestiture Plaus Dees Melanie: Following up on our September 12 meeting,I am writing to clarify Southern California Edison's position on certain divestiture-related issues and to reiterate Edison's commitment to work cooperatively with the City of Huntington Beach- Edison understands that the City desires to widen Newland Avenue,which runs along the entire length of the westerly boundary of Edisoes power plant property. Edison aclmowledges the importance of the street dedication and is willing to offer the dedication as a gesture of corporate goodwill, even though the City could not properly condition the marently pending lot line adjustment application. Edison is also willies to maL:e a donation to the Wetlands Conservancy for landscaping in conjunction with the renewal of the wildlife care center's conditional use permit As you know,Edison needs to secure a lot line adjustment in order to sell the generating portion of its property in accordance with its statewide divestiture strategy. If Lot Line Adjustment No. 97 3 is timely approved,Edison will be able to maintain fee ownership of the land that is currently being sublicensed t6the Huntington Beach Wetlands Conservancy for the wildlife care center. If the application is not approved in a timely manner,Edison will be forced to sell the entire property west of the flood control camel,which includes land containing the generating facilities,a switchyard,fuel tanks,and the wildlife care center. A P.O.BOX wo 22.44 Walnut Grove Apt. Rosemead.CA 91770 SE1P-17-97 09:S3 FROM: . ID:e1^3024999 PAGE 3./; Ms.Melanie S.Fallon September 16, 1997 Page In order to resolve these issues.in a mutually beneficial way,Edison is attaching a draft offer of dedication for the purpose of widening Newland Avenue. Edison will execute and deliver this document if the approach oudined in this letter is acceptable to you- Since Edison would not be in a position to make this dedication if it has to sell its entire property west of the flood conrtrol channel,the document provides that it will become null and void if Lot Line Adjustment No. 97-3 does not become final and unappealable within a time period that allows Edison to meet its divestiture deadlines. Edison is confident that the above solution will work to the advantage of the City, Edison,and the Huntington Beach Wetlands Conservancy. Please feel free to call me directly to discuss any details. Sincerely, VLe Officer,Divestiture Enclosure SEP-17-97 08: 54 FROM: , ID-8111024999 PAGE 4/' CONDITION OF The=demigind pahes aectmowiedgc and sg=that.the lux vocable Offer to Dedicabo is beiag de&vered by Sampan California FAisea Company to the City of Humfagton Heath on the condition dint Lot Lice Ahem 97.3 is appwved mad becomes SaaY and effective in acmdm=with the C Ws subdivision sad== g etnaoes sad the Slate's Sab&vWon Map Act by no later rhea. - r ) - In the event that Lot Line Adjttstm= 97 3 is not approved=d does act became final and effective by seep dam the Izsevocabie offer to Dedicate sbau Wwt no force and effect and tbt City A0 n x serand the Offer Dazed as of this dry of .1997. SOUTHERN CALIFORMA EDISON COWANY, a Califarmaa eoqxmio® ter~ Maw Rea!Pc%xrfies& services Crry of HLTprm w$E&M a BY 9EP=17-97 06:54 FROM= . I x9193024999 PAGE 5/ RECORDING REQUIESM BY: City of Ha Beach AND WDEN RECORDID MAAM TO: City of Htmtington Beech 20 h4ain SUM Hwltfi oa Banat,CA 92&8 AIDeat:o�u: WOMCAM-R-DEM TO DIMIC ATE �p�g ab�e line fcr Recacda'�,�oaiy SOVIHbRl+1•CALMORNdA IDTSON COMPANY,a CA forma cwporz6on, caUed"Offeoor'd=bemby offer to dc&zft to the C>'lY OF HtWU-46rM BEACH,a m nn iciprat corporation,her6nsfter caUed"C, an easancat for public street purposes,in,an, =dim,over,along and a moss that cerWA seal pmpaty in the City of Himni wm Beach,Cow of Ofangc,Swe of Catif*=6 more pard=b y dc='bed on*Rddibit A"Mxb ed hereto sad shown an"Exbft B"trashed bmsx. The foregoing Offer to De&cabe is made subject to tho following teens and condidoas. In amordamce with Hw*ngwn Beak Mtaa:apal Cone MaMr 245,the items listed below do not constte liens or eac.uxibcmmm tbst would to be dadicated for street pug as,s: I_ Offew axpresdyr roadifions the above Offer to Dasc c c a tbt f and approval and meordatieoa of Lot Line A4usancat 97 3 and swh offer sbafl be of a4 fiww or effect unless and until tho recordation of Lot 1k=A49miment 97-3_ 2 71is Offer to Dedicate is an ease meat for the use of real ps+aperty and sbaU not exprew or imply my obfigation now aria the fi -- by Off=w to and r-abytaft my street hn avywwats or maa nay ova costs in eonwcdmvft the dcdkaftd lame. 3. Me=res mw the rya to co tw=ail present lawful um of said}and and to msiaaria anp' presendy located v4ftn the dedicated portion of said land until the City commences coastruc6oa4 of ss:eet imptov=wab on said hw L T be City sball give Offaw at least 90 dqs wrium notice of Ste dfe it to COUMMMM sc.w'm*.- 4- ibis Offer to DDad eft sh&be biadmg on and shalt irate to ft beo &of Offeror tad its=C43som MA And City mod tm=Vecdit ad assisms uDOCSU3UW SEP-17-97 oe. S4 FROM- . ID:6' 1024999 PAGE IN WUFNESS WEMFrOF,said 5oaffiem Calforia Ffisan Company his cau ma this to be ex=ned tb3s day of_ .1997. SOUTB EW CALIFORNIA EDMON COMPANY MS*E_Nfibmw mw8m,RcwphVewm=d Se�riaes City do=beseby accept the above and fotrgoaeg Offer tea dee an casewcat for public street p zposm upon aad u6jeato all of tfic terms,omuu=aad aomftow 62rdn raatao=d, aad does hmeby agme to wmpay whb aad peafom each and ag of said term:;oav==b aad vonditioas. DATED as of this day of .1997. 3M CITY OF RXJNTINGTO14 BEAM a m idpal cogm afion Br- Bp: u SEP-17-97 09-54 FROM= . I x8l- 3024999 PAGE 7/• STAZE OF CALTFOR141A - COtJ TTY OF ) on before amey persot dly appemed pasomuy lmmm to me(or proved to me on the basis of m i dmtory mm enoe)to be the paz whose name is subs+cnbed to the witbin insum=t and admowiedgesl to me fiat( )atecated the so is(hmrnis)av&eri=d capacity sad that by(betNs)dpam on 131e i t the pecan,or the eitity upon be alfof which the mson scrod.cm=Lftd tb--iumumem VnDWSS my band and officW seal. Sigaat:uo STATE OF CALIFORNIA COUNTY OF } On_ -before me, — .pemnaUY appemd pemowRy known to me(or pmved to me an the bads of safisfacwy evidence)to be du pcom whose=mw is sabsaibect m the within and a�dntaovledged to me that(sbelbe)em=umd the same in(6rrlhis)audwri=d y and Ibm1 by(bwlis)signaat m t arnent the peon,of the eotnty upon behalf of which the pecsm ac 4 mcated the hsMm eat. WITNESS my hand and official smL Si@oaturc tA-X=13=WT __. R ECE CITY CL RK CITY OF H€JNTINGTCi�l BEACH. CA lg98 APIR 21 P 4. 21 u ro 4., 00 LCIS 4=J N ■ 0 .y ffi + 1995 California Public Utilities Commission (CPUC) agreed to restructure State's electric services industry. + 1996 State granted authority and details for the restructuring, including requirements for the auction sale of fossil fuel fired power plants by 1/ 1/98. 4/27/98 2 ♦ March 1997 CPUC scheduled meetings to discuss the restructuring and to invite input on environmental implications of power - plant sales. ♦April 1997 City sent letter to CPUC advising concerns about HB power plant. ♦ May 1997 City staff met w/staff of Long Bch,, El Segundo & Redondo Beach . 4/27/98 3 *June 1997 City staff investigated feasibility of removing or reconstructing the Huntington Beach Power Plant to eliminate blighting influence. CPUC determined facility is ""must run". 4/27/98 4 ♦July 1997 * City sent letter to CPUC urging preparation of EIR to address land use and environmental issues. *CPUC decided instead on mitigated negative declaration . * Mayor sent letter to president of Edison., asking for a meeting to discuss concerns. 4/27/98 5 ♦August 1997 City held meetings and corresponded w/SCE regarding lot line adjustment. * Proposed split of power plant site ownership * Plans for completing the Wetlands and Wildlife Care Center. 4/27/98 6 ♦August 1997 (con it) * Staff sought Newland Street improvements, landscape screening and assurances regarding future use(s) of site. 4/27/98 7 September 1997 ♦City prepared landscape plan for screening Wildlife Center and (to a small degree) the power plant. ♦ SCE agreed to donate Newland right-of- way in conjunction with lot split and $50,,000 in landscaping on PCH , 4/27/98 8 September 1997 (con it) + Ci ty put SCE on notice (part of sale reco rd) - *At time of any future requests/permits on property, City will be requiring improvements to adjacent infrastructure and their property. 4/27/98 9 ♦ November/December 1997 AES, Inc. of Virginia was winning bidder for Huntington Beach,, Alamitos (Long Beach) and Redondo Beach power plants. Escrow set to close by 12/31/97 ♦January 1998 Escrow delayed until 3/31/98 due to complications in bringing new restructured power generation arrangements on line. 4/27/98 10 ♦ February 1998 . Mayor Dettloff, Council Member Garofalo and staff met with AES executives to get acquainted and learn of AES intentions. AES stated they had no plans for change in operations. AES was invited to a future Council Study Session to discuss their plans for the site. 4/27/98 11 ♦April 1998 AES advised that escrow was delayed further, until sometime in May, to resolve permit and financing matters. They promised to advise when escrow closed . 4/27/98 12 N ext Ste ps : *When AES completes escrow process, they will be invited to a City Council Study Session to discuss next steps : * Long-range plans for facility * Commitment to City * Coordination w/Southeast Comm . + SCE will still own tank farm & other parcels, once escrow closed w/AES, City will be discussing future plans for land . 4/27/98 13