Calif. staff recommends new NRG Carlsbad power plant

NEW YORK, Nov 13 (Reuters) - The California Energy Commission staff recommended the approval of NRG Energy Inc's (NRG.N) plan to replace three 1950s era units at the Encina power plant in Carlsbad, California with a new 558-megawatt plant.

The new plant would be more efficient and enhance overall environmental performance, NRG said in a release. It will generate enough power for about 450,000 homes.

Officials were not immediately available for comment on the estimated cost of the project. According to industry estimates a project of this size would likely cost over $400 million.

The existing 964 MW Encina gas/oil fired plant is located in Carlsbad in San Diego County about 35 miles north of San Diego. There are five units at the station including the 106 MW steam turbine 1 (which entered service in 1954), 104 MW Unit 2 (1956), 110 MW Unit 3 (1958), 300 MW Unit 4 (1973) and the 330 MW Unit 5 (1978).

NRG said it planned to retire Units 1, 2 and 3 but keep Unit 4 and 5 available to operate as needed to support regional demand.

NRG said the new plant would enter service by 2013 if it gets all the needed permits and secures a long-term contract to sell the power. The project will create more than 350 construction jobs in the San Diego region and estimated tax revenues of $4 to $5 million annually, the company said.

NRG, of Princeton, New Jersey, owns more than 24,000 MW of generating capacity and serves more than 1.6 million customers in Texas. (Reporting by Scott DiSavino; Editing by John Picinich)