Power plant at Ormond Beach could continue operating past 2020 end date

The end date for the Ormond Beach power plant seems to be constantly in flux.

The Ormond Generating Station was expected to retire last year but now it could continue through at least 2021. Meanwhile, the Mandalay Generating Station, the other power plant in Oxnard, has been closed for nearly two years and its replacement in the form of battery storage has inched closer to fruition.

In 2010, a state policy was adopted to retire power plants like the two coastal ones in Oxnard, which use ocean water for its operations. Such power plants were to retire by the end of 2020.

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But last year, GenOn, the company that owns the Ormond power plant, announced it would close early, ending operations October 2018. That didn't happen.

The California Independent System Operator, or CAISO, conducted a study and determined that the coastal peaker plant was needed for the grid's reliability. CAISO is a nonprofit that operates the state's electric grid.

After it was determined the Ormond power plant was needed, the California Public Utilities Commission directed Southern California Edison to negotiate with the owner of the power plant to continue operating, according to Vonette Fontaine, spokeswoman for CAISO.

It was believed that the power plant would operate until the 2020 deadline but now an extension is possible. This month, the CPUC decided to recommend an extension.

The Ormond Beach generating station in Oxnard is visible beyond the pier in Port Hueneme.

 In order to ensure reliable electricity in the state, the CPUC voted on Nov. 7 to recommend to the state Water Resources Control Board for extensions of the 2020 deadline for a number of power plants, including the Ormond facility.

Commissioner Liane Randolph said in a statement that the decision to seek these extensions were not made lightly.

"The CPUC recognizes that once-through-cooling units are not a resource we can continue to rely on going forward," Randolph said in the statement. "It is our full expectation that those plants will close after these extension periods."

Power plants, described as once-through-cooling, use ocean water to cool steam for electricity generation. The process is dangerous to marine life.

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The commission is recommending extensions up to three years, or until 2023, for Alamitos, Huntington Beach and Redondo Beach generating stations. For Ormond, the commission is recommending a one-year extension.

Ultimately, it will be the state Water Resources Control Board that decides whether the extensions are granted. While that decision has yet to be scheduled, the board in Sacramento on Tuesday is expected to hear a recommendation from an advisory committee on extending the retirement deadline until 2022 for some coastal power plants, including the Ormond facility.

GenOn did not respond to phone calls or emails seeking comment on the CPUC recommendation.

Protesters are seen in this file photo carrying signs outside the Oxnard Performing Arts & Convention Center in opposition to the Puente Power Project that NRG Energy Inc. wanted to build at Mandalay State Beach in Oxnard. The proposal was scrapped and a 100-megawatt battery storage project is poised to be the replacement.

While it's not known when the Ormond power plant will end operations, the Mandalay facility has been closed since February 2018.

The closure came after a state Energy Commission committee stated its intention to deny a new power plant proposal. The new plant would replace the once-through-cooling units at Mandalay.

Instead of supporting a new power plant, the commission believed an alternative energy project could meet the needs of an area that includes Santa Clarita and the counties of Ventura and Santa Barbara.

After a bidding process, Southern California Edison picked Strata Saticoy, a lithium battery project to be built just outside of Oxnard on Beedy Street, not far from the intersection of Vineyard and Central avenues. The 100-megawatt project, combined with smaller projects in Santa Barbara and Ventura counties, are expected to meet the region's energy needs without the Mandalay facility.

On Friday, Zita Kline, an administrative law judge issued a decision in support of the battery storage project. Now, the project awaits CPUC consideration, which could take place as early as Dec. 19. The battery project could be ready December 2020.

Wendy Leung is a staff writer for the Ventura County Star. Reach her at wendy.leung@vcstar.com or 805-437-0339. You can also find her on Twitter @Leung__Wendy.