News Article

August 1, 2007
Fresno declines power authority
Pollution concerns overshadow promises of cheaper electricity.
By Marc Benjamin / The Fresno Bee

The Fresno City Council decided Tuesday to bow out of a public power authority amid concerns that the authority's plans for a local electricity-generating plant could worsen the Valley's dirty air.

The council voted 4-3 against joining the San Joaquin Valley Power Authority, swayed more by air pollution concerns from environmentalists, minority groups and labor unions than by promises of cheaper electricity.

Fresno would have been the largest member of the authority, consuming about 45% of the authority's electricity. Thirteen other communities in Fresno, Tulare and Kings counties already have joined.

Officials at the Kings River Conservation District, which is managing the power authority, have said the project can proceed without Fresno.

The authority plans to purchase electricity on the open market and is studying whether to build its own natural gas-fueled power-generating plant near Parlier.

As an inducement to Fresno, Kings River officials recently offered to give the city a 60-day notice if it decides to build the power plant.

That would have allowed Fresno to join the authority but later opt out of the power plant and avoid its costs.

As part of the proposal, Council Member Blong Xiong said Fresno's savings should be funneled back into "green" projects for the city.

Some council members, however, said the 60-day notice couldn't save the deal.

"I don't give much credibility to the last-minute resolution," said City Council President Henry T. Perea. "This power plant is not off the table."

But Council Member Larry Westerlund said the authority will give the city a significant say in any power plant it builds.

He said nine to 12 power plants are being proposed for the Valley and the city of Fresno will not be able to oppose any of those without going to San Francisco or Sacramento.

To build the plant in Parlier, the power authority has proposed buying emission reduction credits -- money paid for the right to pollute -- from somewhere near the plant.

But Kevin Hall, representing Service Employees International Union employees and a Sierra Club member, said there are not enough emission credits in the Parlier area to offset pollution from a natural gas-powered plant. That means the authority would need to buy credits outside the Parlier area, he said.

Officials with the Kings River district said the authority could save the average homeowner about $5 a month compared with current bills from Pacific Gas & Electric Co. PG&E officials have disputed how long the authority could promise lower rates.

The reporter can be reached at mbenjamin@fresnobee.com or (559) 441-6166.