Molly Ayala
The city of Morro Bay in California has been powered by various companies over the years. The Morro Bay Power Plant, which was once a significant part of the city's landscape and economy, was previously owned by Duke Energy and later by Dynegy, which acquired the plant in 2007 and closed it down in 2014 due to environmental concerns. Since then, Vistra Corp., a Texas-based energy company, has been working on plans to build a large-scale battery storage facility in Morro Bay. In terms of electricity providers, Monterey Bay Community Power (MBCP) currently offers cleaner and cheaper energy to the city, with a focus on renewable sources such as wind and solar power. PG&E continues to play a role in electricity delivery and billing, ensuring a smooth transition for customers.
| Characteristics | Values |
|---|---|
| Company | Monterey Bay Community Power (MBCP) |
| Electricity Provider | Non-profit |
| Electricity Source | Solar, wind, and hydroelectricity |
| Former Electricity Provider | PG&E |
| Former Electricity Source | Combination of carbon and renewable energies |
| Vistra Corp. Proposal | To build a battery storage facility |
| Vistra Corp. Facility Location | Behind the former Morro Bay Power Plant |
| Vistra Corp. Facility Size | 4-acre, 200-megawatt |
| Vistra Corp. Facility Cost | $900 million |
| Vistra Corp. Facility Type | Zero-carbon energy technologies |
| Vistra Corp. Facility Benefits | $24.2 million in the first 10 years for the City of Morro Bay |
| Vistra Corp. Facility Status | Morro Bay City Council approved a memorandum of understanding |
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What You'll Learn
Monterey Bay Community Power is Morro Bay's primary electricity provider
Monterey Bay Community Power (MBCP) is Morro Bay's primary electricity provider. MBCP is a non-profit electricity provider that serves Central Coast counties in California. MBCP began providing electricity to Morro Bay on January 1, 2020, and the switch is expected to help the city significantly reduce its carbon emissions and save money on electric bills. MBCP sources power from renewables such as wind and solar energy, as well as hydroelectricity, which is carbon-free.
Prior to MBCP, PG&E supplied electricity to Morro Bay, using a combination of carbon and renewable energies. PG&E continues to play a role in delivering electricity to Morro Bay and billing customers. MBCP offers customers a standard MB Choice program that uses carbon-free energy and costs $3 to $10 less per month than the previous energy provider. There is also an option for a higher-level program called MB Prime, which provides 100% renewable energy for $3 to $5 more per month.
In addition to MBCP and PG&E, other companies have been involved in Morro Bay's energy landscape. The Morro Bay Power Plant, which was a fixture of the city for 60 years, ceased operations in 2014. The plant was owned by various companies over the years, including Duke Energy, LS Power Group, and finally, Dynegy, which closed it due to environmental impacts. Vistra Corp., which merged with Dynegy in 2018, has proposed building a large-scale battery storage facility on the site of the former power plant to capture and utilize excess renewable solar electricity. This project is expected to bring economic benefits to the city and address energy reliability issues.
Morro Bay's journey towards cleaner and more affordable energy is a testament to the city's commitment to sustainability and the well-being of its residents. MBCP's focus on renewable energy sources and the development of energy storage facilities contribute to reducing carbon emissions and improving the environmental footprint of the community.
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MBCP offers cheaper, cleaner energy
MBCP, or Monterey Bay Community Power, is a non-profit electricity provider that serves Central Coast counties in California. MBCP offers Morro Bay residents cheaper and cleaner energy, sourced from renewables such as wind, solar, and hydroelectricity. MBCP's standard program, MB Choice, offers carbon-free energy at a lower cost than traditional providers, with customers paying $3 to $10 less per month. This program also leverages PG&E's infrastructure for electricity delivery and billing, so Morro Bay residents can continue paying their bills in the same way they always have.
MBCP's commitment to providing cheaper, cleaner energy is further demonstrated by their MB Prime program, which provides 100% renewable energy for just $3 to $5 more per month than the standard MB Choice program. This higher-level program uses only solar and wind energy, and offers a local choice and control over energy sources while also providing economic vitality.
The switch to MBCP is expected to result in significant savings for Morro Bay customers. In 2020, it was estimated that customers would collectively save about $250,000 on electric bills, with that number rising to $6 million by 2025. Additionally, MBCP's focus on carbon-free and renewable energy sources will help Morro Bay reduce its carbon emissions and work towards its carbon neutrality goals.
MBCP's efforts to provide cheaper, cleaner energy are also aligned with California's goals of modernizing its grid and reducing reliance on carbon-intensive power plants. The state has been working to transition away from fossil fuels and towards renewable energy sources, and MBCP's programs support this initiative by providing carbon-free and renewable energy options for communities like Morro Bay.
In summary, MBCP offers Morro Bay residents a more affordable and environmentally friendly alternative to traditional energy providers. Through their MB Choice and MB Prime programs, MBCP provides cheaper, cleaner energy that leverages renewable sources and helps the community reduce its carbon footprint, all while maintaining the convenience of existing infrastructure for electricity delivery and billing.
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MBCP's MB Prime program provides 100% renewable energy
Morro Bay is served by Monterey Bay Community Power (MBCP), a nonprofit electricity provider that sources power from renewables such as wind and solar energy, as well as hydroelectricity. MBCP offers two programs to its customers: the standard MB Choice program and the higher-level MB Prime program. The standard program uses carbon-free energy sources and costs $3 to $10 less per month than the previous electricity provider, PG&E. The MB Prime program, on the other hand, provides 100% renewable energy and costs $3 to $5 more per month than the standard program. This small premium ensures that the energy supplied is entirely renewable and helps support the development of clean energy infrastructure.
The MB Prime program has been well-received by the community, with Morro Bay Mayor John Headding applauding the launch. The program not only provides residents with a more sustainable and environmentally friendly energy option but also helps the city work towards its carbon neutrality goals. By choosing MB Prime, Morro Bay customers are expected to collectively save about $250,000 on electric bills in 2020 and a significant $6 million by 2025. This saving is due to the lower cost of renewable energy sources and the reduced dependence on non-renewable energy, which is subject to price fluctuations.
MBCP's MB Prime program is just one example of the city of Morro Bay's commitment to reducing its carbon footprint and transitioning to cleaner energy sources. In addition to this program, Morro Bay has also been working with Vistra Corp. (formerly Dynegy) on the development of a large-scale battery storage facility to support the state's renewable energy initiatives. This project, located at the site of the former Morro Bay Power Plant, aims to address the intermittent nature of renewable energy sources and improve the reliability of the electric grid. The battery storage facility will capture and store excess renewable solar electricity, ensuring a consistent supply of energy during periods of high demand or when renewable sources are less productive.
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Vistra Corp. is building a battery storage facility in Morro Bay
Vistra Corp. is planning to build a battery storage facility in Morro Bay, California. The proposed facility would be located on the site of the retired Morro Bay Power Plant, which was previously owned by Dynegy before it merged with Vistra Corp. in 2018. The power plant was permanently closed in 2014 due to environmental concerns.
The Vistra Corp. battery storage facility is designed to supply 450,000 homes with renewable, zero-carbon energy, addressing "intermittency/reliability issues" with the electric grid in the region. The facility is expected to have a capacity of 600 megawatts and will be built on 24 acres of the 107-acre retired power plant property, adjacent to critical transmission infrastructure.
Vistra Corp. has stated that the project will bring significant economic benefits to the City of Morro Bay, with a projected fiscal windfall of $24.2 million in the first 10 years. The company also intends to invest $900 million in constructing the facility, which will create new industry and jobs in the area.
The project has undergone several reviews and analyses, including an Offsite Consequences Analysis that concluded that the facility would not pose any significant health or safety risks to the public. Additionally, Vistra Corp. has had to address concerns regarding the removal of the power plant stacks, which could cost up to $30 million. The company reached an agreement with the Morro Bay City Council, where they must either remove the stacks and an asbestos-containing turbine building by 2028 or pay a $3 million penalty to the city.
In terms of the approval process, Vistra Corp. initially submitted a development application to the City of Morro Bay. However, in 2024, the company paused this application and announced plans to pursue approval from the California Energy Commission (CEC) instead, as allowed by Assembly Bill 205. This state-led process will involve reviews by the California Energy Commission and the California Coastal Commission. The CEC has the authority to certify non-fossil-fueled power plants, energy storage facilities, and other green energy facilities, bypassing local jurisdictions if the project is deemed necessary for public convenience and necessity.
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Morro Bay Power Plant closed in 2014
The Morro Bay Power Plant, which was built in the early 1950s, closed down in 2014. The plant was constructed by Pacific Gas and Electric during a postwar recession, creating jobs and tax revenue for the community. However, the plant's closure was inevitable due to its environmental impacts.
Dynegy, the owner of the plant at the time, made the decision to shut it down permanently, marking a shift towards cleaner and more renewable sources of energy. This decision aligns with California's efforts to modernize its grid and reduce dependence on carbon-intensive power plants.
In 2020, Morro Bay and San Luis Obispo transitioned to community choice energy, supplied by Monterey Bay Community Power (MBCP). This shift resulted in significant cost savings and a substantial reduction in carbon emissions for both cities. MBCP provides electricity sourced from renewables, such as wind and solar energy, as well as hydroelectricity.
Following the closure of the Morro Bay Power Plant, Vistra Corp., the current owner, proposed constructing a state-of-the-art energy storage facility at the site. The project, known as the Battery Energy Storage System (BESS), is expected to be one of the largest in the world, with a capacity of 600 megawatts. Vistra intends to invest $900 million in the facility, utilizing a small portion of the retired fossil fuel power plant site. The proposed facility will address intermittency and reliability issues related to the electric grid, supplying renewable and zero-carbon energy to up to 450,000 homes.
The Morro Bay City Council approved a memorandum of understanding (MOU) with Vistra Corp. in June 2021, requiring the company to remove the stacks and asbestos-containing turbine building by 2028 or pay a $3 million penalty to the city. The MOU also includes plans for the construction of the world's largest lithium-ion battery storage facility, which will have a positive economic impact on the region.
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Frequently asked questions
Since 2020, electricity in Morro Bay has been provided by Monterey Bay Community Power (MBCP).
MBCP uses carbon-free energy, sourced from wind and solar power.
MBCP's energy sources are renewable and significantly reduce carbon emissions.
MBCP's standard MB Choice program costs $3 to $10 less per month than Morro Bay's previous energy provider, PG&E.
