San Diego Business Journal

Port, Dynegy Reach Pact to Dismantle South Bay Power Plant

By Lou Hirsh Thursday, October 27, 2011

The Port of San Diego and Dynegy Inc. have reached an agreement on a long-discussed dismantling of the South Bay Power Plant on the Chula Vista waterfront, port officials announced Oct. 26.

A port district statement said authorities received a letter from Dynegy on Oct. 25, in which the Houston-based energy provider said it is willing to approach the dismantling in a two-step process. That would include removal of above-ground structures, followed by removal of subsurface structures and in-water structures to a depth of four feet below grade.

Dynegy began asbestos abatement at the plant in August, as part of a process that will continue through May 2012. The plant, at 990 Bay Boulevard, is owned by the Port of San Diego and was operated by Dynegy before ceasing operations Dec. 31, 2010, after the California Independent System Operator deemed its power as no longer needed.

“Dismantling and demolishing the South Bay Power Plant is a critical step in our plans for the Chula Vista waterfront, which is one of the prime pieces of coastal real estate in all of California,” said Scott Peters, Chairman of the Board of Port Commissioners, in the statement. “Once that demolition permit is issued and approved by the California Coastal Commission, we’ll be out there helping to knock it down.”

Ann Moore, who represents the City of Chula Vista on the Board of Port Commissioners, called the agreement “great news” for the port district and city. “We now have a plan of action and will work with Dynegy and the City of Chula Vista to ensure it is carried out swiftly and safely.”

Dynegy holds the lease on the plant, comprised of approximately 150 acres of land and 242 acres of water. The energy firm will begin the process of demolishing the plant structure by first obtaining a demolition permit from the City of Chula Vista and a development permit from the California Coastal Commission.