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Edison, Oxnard agree on construction of McGrath Peaker Plant

October 25, 2011 12:00:00 AM PDT
Southern California Edison has signed a settlement agreement with the city of Oxnard that allows the electric company to start building McGrath Peaker Plant.

Edison said the plant will help bring the local electric system back on line quickly in case of emergencies, such as earthquakes or fires.

The plant will operate primarily when there's high demand for electricity or when high-voltage transmission lines go out of service. The company expects to put the plant into service next summer.

The settlement agreement also ends legal disputes between Edison and the city over the peaker plant and Oxnard's water policy.

Edison said that in exchange for remaining city construction permits and water connection, it's ensuring that the project will be permanently "water neutral." It's making a $450,000 compliance payment to Oxnard to fund a water conservation or water recycling project of the city's choice.