The Dynegy power plant, previously owned by Pacific Gas and Electric Co.(PG&E), Duke Energy, and LSPower (PG&E), has played a large role in Morro Bay, and in providing electricity to the Central Coast and the Central Valley of California (primarily Fresno and Bakersfield). The plant was built in the 1950s, and Dynegy had hoped to modernize it with a new combined cycle plant. The plant was operating at relatively low capacity factors (approximately 5%) under contract with PG&E, due primarily to economics. The plant was staffed with 44 employees. A portion of the city's budget came from taxes on the natural gas the plant burned. The United States Environmental Protection Agency (EPA) and the courts are wrestling with how to interpret the Clean Water Act (CWA) and its applicability to power plants. The EPA has ruled that the local Regional Water Quality Control Boards are responsible for ensuring that the current and the future plant are permitted and regulated.