AES to build generation in California

In encouraging news for California as it hopes to boost electric supplies, independent energy company AES says it plans to build more generation in the State:

Independent power supplier AES Corp., encouraged by an improved outlook for California's electricity market, said Monday that it planned to build more generating plants in Southern California.

AES said the new power plants, which could take several years to begin operation, would "reduce the risk of power shortages" in the state. But some industry observers, while applauding AES' action at a time when state power usage is at record highs, caution that California still faces potential power shortages in the next three years.

Although AES is planning to add as many as 500 megawatts of electricity — enough to power about 375,000 homes — California is poised to lose 4,000 to 8,000 megawatts in the coming years from aging power plants that are expected to be shuttered

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The "peaker" plants are in addition to AES's existing 4000 MW of natural-gas powered generation.