Power plant closure costing Morro Bay, APCD

November 15, 2013

morro bay stacksThe city of Morro Bay and the San Luis Obispo County Air Pollution Control District will lose more than $1 million in combined annual income upon the closure of the Morro Bay Power Plant. [Tribune]

Officials with energy company Dynegy, which owns the plant, announced last week that it plans to close the natural gas-fired plant in February.

Dynegy pays Morro Bay more than $800,000 annually in outfall lease fees. The air district receives more than $270,000 annually from the plant in air pollution fees.

“We’ve been preparing for this for quite some time,” Air Pollution Control Officer Larry Allen said.

The city has been collecting outfall lease fees from the plant since it incorporated and assumed control of the lease in 1984. The plant pays for the environmental impact of bringing in and discharging ocean water as part of its cooling process.

In recent years, Morro Bay has placed much of the revenue from the outfall lease fees in its reserve fund to cushion the blow of the potential plant closure. Previously, outfall lease fees went to the general fund.

The city plans to make up for the lost funds through use of reserves, cost savings and possibly new revenue sources, outgoing City Manager Andrea Lueker said.


Reality Check

Let’s see — closing a NATURAL GAS fired plant; looking toward possible closure of Diablo Canyon (described in other articles). ????????

People, it’s not just the lost revenue to the City, County and APCD. Our entire life-styles and conveniences are headed to extinction. As overly restrictive government regulations drive out traditional power sources, we will all need to learn how to make tallow or bee’s wax candles on the kitchen stove to be able to read our ipads. Wind and solar power are VERY unlikely to be sufficient to power all our techy gadgets.

I prefer the quaint, but effective, efficient, relatively clean, power from MB power plant and Diablo Canyon.


Even some of the most influential of the scientists worried about global warming admit that wind, solar and similar “clean” technologies are not going to be sufficient to substitute for existing “carbon-producing” energy sources within a reasonable time frame. They are advocating more nuclear power as well. (They know about the risks and drawbacks but consider them less severe than the effects of global warming.) I wish I had saved the link for that but if interested you’ll have to search for it ’cause I’m too lazy.


Nuclear Power might be acceptable if it is produced with the most modern, advanced and safest technology AND operated by a company with the highest reputation for quality and ethics top to bottom Unfortunately, that’s not what we are being offered. Quite the opposite in fact.

We have people in charge of nuclear operations who put their own selfish interests and profits ahead of safety. It is a dangerous situation. Maybe that’s why the top bosses for Diablo Canyon live hundreds of miles away from the plant.


It’s not acceptable because it is not cost effective without tax breaks and that the taxpayers pay to deal with the waste and that cost is not included in the monthly bill.


Wow, a million dollars a year? That means the Mayor can only fire 5 more people this year.


Don’t put it past him…….


You recallers should see if you could get that guy from Toronto to be Irons’ replacement. Just give him a good crack connection and he’ll cut all your taxes for you.


Let’s move all City of Morro Bay and APCD offices/yards into the MBPP structure once it’s closed. When the County of SLO goes out the next time to lease space, make certain it’s within the former plant. Same for the City of SLO and we’ll soon see how they can do without.

Perhaps “working” (at least from a physical surroundings aspect) in the real world might be of benefit to them? Don’t worry, all the asbestos insulation is encapsulated…


I’m torn.

On the one hand, I applaud starving that lout at APCD.

On the other hand, the City of Morro Bay needs all the money it can get with their mismanagement, poor timing and bumblery.


Don’t worry about the APCH, Mr. Allen stated in The Tribune they have been preparing for this and “new revenue” will be generated. That means, we are going to get more regulations with fees attached. Nice solution! How about dumping an employee???


“We’ve been preparing for this for quite some time,” Air Pollution Control Officer Larry Allen said.

I’ll bet he has! In fact this is probably the first statement from Larry Allen that we can actually believe. I’m guessing that Allen’s “preparations” won’t include any staff reductions, elimination of redundant services, elimination of moronic videos, etc.

We are all so screwed.

Jorge Estrada

This is another example of how govenment is funded by private industry and with this money they do what?, oh ya, get paid. A million dollars is a big hit so expect a new tax, exuse me, a new compulsory fee.



Get ready for the $500/year “RESIDENTIAL CHIMENY OPERATION PERMIT”. Larry needs a new pair of shoes!


I think it was Beverly Hill (or Brentwood) that just banned fireplaces. Get ready, it’s coming, one City at a time!


They already have banned fireplaces in SLO county about eighteen years ago. You can’t put in wood burning, in new construction, only zero clearance (gas/faux logs) Existing was left alone.


That is wrong, you can install and use a clean burn woodburning fireplace or stove in new construction.

It is called rule 504 http://www.slocleanair.org/programs/woodstoves.php

In the valley it’s a different story.


May I suggest you go back and reread my post. I said zero clearance. That is a term used for glass front clean burning types. My point was an old school brick and block type is not allowed. Am I right?? That is rhetorical, I know the answer. Also pellet type is not wood.


I did read correctly BeenThereDoneThat says: “You can’t put in wood burning, in new construction, only zero clearance (gas/faux logs)”

You wrote “only zero clearance (gas/faux logs)” this is not the same as:

Zero clearance gas and zero clearance EPA certified wood burning device’s are approved county wide.


Bring it on. Winter is once again on the way, and I typically can’t spend much time outside in Los Osos due to poor air quality. I’m not sure what people are burning, but someone needs to tell them not to burn painted wood, treated wood, and plywood.


How about moving to some far off location rather than make us pay some tax or get rid of our fireplaces?


It’s a good thing that “outgoing City Manager Andrea Lueker” was instrumental in making sure that the outfall lease fees went into the reserve fund. Of course, this makes no difference to Irons.


Smart fiscal manager…..too bad the council majority is so dense.


Guess the APCD will have to raise their other fees now before giving Mr. Allen another out of line raise.