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Council approves compromise on Mojave plant stake; amendment added requiring periodic cleanup and compliance reports
Summary
The council approved, as amended, a compromise settlement about the city's ownership stake in the Mojave power plant (item 28). An amendment requiring DWP to report periodically on environmental cleanup and consent-decree compliance passed first; the underlying ordinance then passed as amended.
The City Council on Tuesday approved a settlement and limited retention of the city's interest in the Mojave power plant, after adding a requirement that the Department of Water and Power (DWP) return periodically to report on cleanup and compliance steps.
A proposed amendment requiring DWP to report periodically on facility remediation under the consent decree and to reassess the city's participation in about 18 months passed first by a roll-call vote of 13–0. The council then approved the ordinance as amended by a recorded vote of 10–3.
Why it matters: the Mojave facility has been the subject of environmental and contractual disputes for years. Council debate centered on the trade-offs between retaining an ownership stake to influence cleanup and resource planning, and the financial and environmental risks of ownership. Supporters said keeping part of the stake preserves a low-cost energy source and a role in remediation; opponents said the city should not remain involved in an environmentally problematic out-of-state plant.
What council members said Brian Darcy, secretary-treasurer of the California Coalition of Utility Employees, urged the council to support the compromise while pursuing renewables and distributed generation within the basin. "Don't make your decision based upon some fear that your capacity is not gonna be met, because it is," Darcy said, urging the city to require a DWP feasibility report on renewables on DWP property.
Councilmember Bernstein said retaining the stake preserved a low-cost supply and provided a foothold to increase ownership later if Edison or other partners fail to comply with cleanup commitments. David Wiggs, the DWP general manager, and Henry Martinez, assistant general manager for power services, told the council the department would continue to evaluate participation and opportunities to increase ownership if other participants cannot meet cleanup obligations.
Formal actions and votes - Amendment: require the Department of Water and Power to return periodically with progress reports on remediation and consent-decree compliance and reassess participation in the Mojave facility after about 18 months. Vote on amendment: 13 ayes, 0 noes. Outcome: amendment approved. - Main ordinance (approve settlement retaining limited city interest as set out in staff recommendation, as amended). Vote: 10 ayes, 3 noes. Outcome: ordinance approved as amended.
Context and next steps The council’s amendment requires DWP to present compliance and remediation updates and to reassess participation; staff and DWP said they would return with further evaluations. The vote leaves the city holding a limited retained interest while DWP continues to monitor settlement performance and environmental remediation. Councilmembers urged DWP to accelerate renewables and distributed-generation planning on city property.
Ending: Council members who opposed the final ordinance noted environmental concerns; supporters said the compromise preserved low-cost capacity and gave the city leverage to press cleanup and to pursue further acquisitions if other owners fail to meet obligations.
