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The South Bay Power Plant is comprised of 150 acres of land and 242 acres of water. San Diego Gas & Electric (SDG&E) was its first operator when the plant began generating power in 1960.

In 1999, the Port of San Diego acquired the plant from SDG&E, with the purpose of facilitating its removal from the bay front. Since then, the plant was operated by Duke Energy, LS Power and Dynegy South Bay. The Port currently has a lease with Dynegy South Bay.

In October of 2010, Dynegy South Bay, the current tenant of the South Bay Power Plant, received a letter from the California Independent Systems Operator terminating the Reliability Must Run status of the South Bay Power Plant and clearing the way for decommissioning and associated remediation of the site. Since then, the Port of San Diego and Dynegy South Bay have diligently worked toward the ultimate goal of removal of the South Bay Power Plant and remediation of the site.

On January 1, 2011, Dynegy South Bay began decommissioning the South Bay Power Plant. Asbestos abatement began on August 2, 2011.

The Port of San Diego is working in partnership with the City of Chula Vista on the expedited removal of the power plant. On February 16, 2011, staff from the City of Chula Vista met with Port of San Diego staff and developed a team charter that outlines the cooperative nature of a demolition project scope benefiting the public.

On March 1, 2011, the City adopted a resolution to support the expedited demolition.

On October 26, 2011, the Port announced that it had come to an agreement with Dynegy South Bay on the demolition and remediation of the South Bay Power Plant. The agreement states that Dynegy South Bay will approach the project as a two-step process, focusing on removing the above-ground structures first.

On November 3, 2011, Dynegy South Bay submitted a Coastal Development Permit application to the California Coastal Commission.

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