Ciy Attorney Dennis Herrera just announced a agreement with Mirant to close the Potrero power plant by 2010, one of the city's last remaining large power plants. According to our sources, Mirant will pay around $1 million to the city of San Francisco for "pediatric asthma and neighborhood improvements." (Ed Harrington, Sophie Maxwell and Aaron Peskin are "all on hand to receive plaudits for this agreement.") What's more, Mirant power plant folk will have to pony up $100,000 to city attorney's office for legal fees and costs. (Dennis Herrera is just really not someone you want to screw with.) In addition to its polluting smokestack, SF Chron reports, "part of the 40-year-old plant runs under an expired permit allowing it to draw in millions of gallons of water per day and return heated discharge to the bay, killing fish larvae."

Update: Herrera just released a statement. Here's a snippet of what he said at today's press conference.

"This is a major step forward for a San Francisco that will be cleaner, greener and healthier because of what we've achieved today," said Herrera. "Notwithstanding the occasionally unkind words we've exchanged in years past, I must today commend Mirant for its cooperative spirit and forward-thinking leadership. In working with us to forge an agreement that few would have thought possible even a few months ago, Mirant ultimately proved its commitment to being a good neighbor and a willing partner. This is testimony to their hard work as well as ours, and it is vindication for the efforts of all the leaders throughout the years who've worked to close this power plant. I am particularly grateful to Supervisor Sophie Maxwell, former Board President Aaron Peskin, PUC General Manager Ed Harrington, and former PUC General Manager Susan Leal for being such effective partners every step of the way. My own office also lent considerable expertise throughout the case, but I'm especially thankful to Chief Assistant City Attorney Jesse Smith and Energy Team Chief Theresa Mueller for their tireless work."

So, there you have it.