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LOCKHEED SITE EYED FOR PLANT THREE LOCATIONS BEING CONSIDERED.

Byline: Jim Skeen Staff Writer

PALMDALE - Land owned by Lockheed Martin near Sierra Highway and Avenue M is being considered as a possible site for a power plant being pursued by the city of Palmdale.

City and Lockheed Martin officials said they are in discussions regarding using part of a 640-acre site for the power plant. The property is owned by Lockheed Martin Properties, the corporation's real estate subsidiary, and had been earmarked for development as a possible business park.

``The city of Palmdale has approached us about an opportunity for using about half of it,'' said Lockheed Martin spokesman Dianne Knippel.

Assistant City Manager Steve Williams said the site was one of four being considered by Palmdale as the site of the power plant. Williams declined to identify the other three sites, citing sensitivity of land negotiations.

Williams said the city hopes to have a site for the power plant identified in a couple of months.

City officials are working with a consultant, Inland Energy Inc., to secure permits to build a 500-megawatt power plant that they say would provide the city with reliable, more- affordable energy. It is expected to take about two years and cost as much as $5.5 million to secure those permits.

The city plans to seek permits for a plant that would operate two 165-megawatt gas-fired turbines and a steam turbine capable of generating 170 megawatts. The plant would be capable of providing energy for a city of 400,000 people.

It is estimated that constructing such a plant would cost about $300 million.

In the two years of going through the permitting process, city analysts could study what arrangement for using the permit would best serve Palmdale's interests. Possibilities include forming the city's own municipal utility, such as those operating in Los Angeles, Glendale and Burbank; assigning the permit to a company; or selling the permit outright.

In the mid-1990s, Lockheed Martin received environmental clearance to develop the business park. At that time, the plan envisioned a complex, including an 18-hole course golf course, that would have created as many as 10,110 jobs over a 25-year period.

There are no plans for the property at this point, but Lockheed Martin wants make sure any development is industrial or commercial and compatible with the company's neighboring plant 10 site and Air Force Plant 42.

Jim Skeen, (661) 267-5743

james.skeen(at)dailynews.com
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Publication:Daily News (Los Angeles, CA)
Geographic Code:1USA
Date:Feb 27, 2006
Words:401
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