CHINO -- A company constructing a 180-megawatt power plant at the men's prison cannot meet a state-mandated deadline to begin operation by Sept. 30 and will seek an extension, officials said.

Pegasus Power Partners, a subsidiary of New Jersey-based Delta Power Company, intends to request an extension from the California Energy Commission in the next few weeks, said Dean Vanech, Delta president.

If Delta obtains the extension and receives necessary air quality permits, the plant might begin operation in mid-to-late November, Vanech said.

A number of factors has delayed construction of the Pegasus Power Project, including Delta's discussion with the state over the future of the plant and a lack of qualified labor to construct the facility, Vanech said.

Although the plant's operation will be delayed, CEC officials said they are not sure what, if any, consequences Delta and Pegasus officials would face.

"I think if the plant isn't finished by Sept. 30, it will then be looked at," said CEC spokesman Rob Schlicting. "It's conceivable that they would have to come in and go back through a four-month review process."

In May, Delta and Pegasus officials applied to build the power plant on 15 acres at the California Institution for Men under a special permitting process authorized by Gov. Gray Davis in February. The process allows the CEC, which oversees the licensing of power plants in the state, to review applications to construct the plants in an expedited three-week period. The expedited permitting process applies only to "peaking" power plants operated only during periods of high - or peak - electrical demand.

The project received expedited approval, but company officials have since faced other obstacles. An air quality permit required by the South Coast Air Quality Management District was held up because plant officials said they would not receive the equipment needed to mitigate air pollution in time.

That point is now moot, Vanech said. Company officials say they now believe the required air-pollution equipment will be available by the time the plant begins operation, he said.

One delay has been caused by Delta's negotiations with the state over the future of the plant, including the possibility that California would possibly own the plant, Vanech said.

The plant owners also faced difficulty in finding skilled technicians to work on the plant, he said.

Despite the delay project officials have every intention of completing the plant, Vanech said.

"We want to get the plant built as quickly as possible," Vanech said.

Most of the plants' equipment is available and ready to be installed, Vanech said.

Company officials just need to finalize their negotiations with the state and obtain the permit from the AQMD, Vanech said.

"And then we're good to go," he said. "Obviously, the CEC will have to help us."

The CEC will have some precedent regarding any extension hearings, Schlicting said.

Officials constructing a "peaking" power plant in Kings City in Monterey County have requested an extension, Schlicting said.

The appeal for the extension will be heard at the CEC's business meeting on Aug. 22, he said.

After the hearing, the CEC will have a better idea of what Pegasus officials will face, he said.

According to information from the CEC's website, if the Pegasus plant is not completed by Sept. 30, the Energy Commission will hold a meeting to determine what caused the delay and possible sanctions.

If the commission finds that the project owner failed to proceed with due diligence to have the Pegasus Project in operation by Sept. 30, 2001, the company will have to forfeit its application.

Joe Florkowski can be reached by e-mail at joe.florkowski @langnews.com or by phone at (909) 597-6389.