MORRO BAY, Calif- The city of Morro Bay has just acquired a new piece of land and more money by reaching an agreement with the Morro Bay power plant. The city has just signed a new lease with the power plant for 5 years. Morro Bay receives roughly 750-thousand dollars a year for the plant to run its practice called "once through cooling" which discharges cooled water back into the bay. That money helps the city, but its never assured because the plants future is rocky. The cooling process used at the plant will be banned by December 2013 and if the plant does not comply it will be shut down.
Dynegy, the company that owns the plant, said they are not planning on closing and are looking for a long term contract. Right now they are only selling power when the need for power by utility companies is greater. In the meantime the city is reaping the benefits, and just acquired a triangular piece of land nearby the plant, by waiving part of the lease money. "It's the 500-thousand portion that we are waiving for one year in exchange for that we are taking ownership of the 2.4 acres," said Mayor Yates.
Included in the deal is a parking lot, which the city is hoping to turn into a museum, and eventually use the newly acquired land as additional parking. "We have been waiting for Dynegy to dedicate that property so that we can then give a long time lease to the Maritime Museum so they can get their fundraising going and build their building and start the museum," said Mayor Yates.
