The Morning Report
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San Diego Gas & Electric announced today that it has selected plans to build three new power plants to meet the region’s peak summer demand.

The company agreed to buy power from two natural gas-fired power plants on SDG&E property at its Pala substation in North County. The plants, which would be built by J-Power USA Development, a Chicago-based subsidiary of a Japanese company, would provide 86.5 megawatts of energy. That’s enough to power 56,000 homes.

SDG&E also agreed to purchase electricity from Wellhead Power Margarita, which will build a 46.5 megawatt natural-gas fired plant in southern Orange County. It would produce enough electricity to power 30,000 homes.

The local utility wants the plants operating by next year. The California Public Utilities Commission has the final say over the contracts SDG&E awarded. The utility expects a decision by October.

ROB DAVIS

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