On April 4, the City of Morro Bay received a letter from Vistra Corporation (Vistra) withdrawing its application for city entitlements to construct a battery energy storage system (BESS) facility on the former power plant property. The city will process Vistra’s request and formally withdraw the application for entitlements. The city’s Urgency Ordinance No. 670 will prevent any new applications for grid-scale BESS facilities until Jan. 28, 2027.

The city processed Vistra’s application when it was first submitted on Dec. 22, 2020 until Oct. 28, 2024, when Vistra asked the city to pause municipal consideration of the proposed BESS facility and expressed an intent to pursue state approval of the project through the California Energy Commission’s (CEC) Opt-In Certification program. To the city’s knowledge, Vistra has not initiated an Opt-In Certification application. The CEC will notify the city if they receive an application from Vistra. If Vistra applies to the CEC, the city will closely engage in the process to protect the community’s interests.

More information about the Opt-In Certification process, including opportunities for public involvement, is available on the CEC’s website at energy.ca.gov/programs-and-topics/topics/power-plants/opt-certification-program

The city is not aware of Vistra’s future plans for the power plant property. Located at the heart of the city’s waterfront, the former power plant is a critical opportunity site for the community. The city recently initiated an update to the Waterfront Master Plan. This will be an opportunity for the community to help shape a vision for future land uses at the former power plant and other waterfront properties.

The city will keep lines of communication open with Vistra and provide updates to the community as more information becomes available.