PG&E Increases Renewable Energy Resources and Requests Offers

Pacific Gas and Electric Company (PG&E) has received approval from the California’s Public Utilities Commission (CPUC) to enter into four new power purchase agreements (PPA) from three renewable projects and one cogeneration facility.

The three renewable projects — two hydroelectric, a biogas, and a combined heat and power generator — will generate more than one megawatt (1 MW) of renewable power for PG&E’s customers. The cogeneration facility will add another megawatt of power to PG&E’s power portfolio. “The CPUC’s approval of these four projects is a significant development because it allows for the first small renewable generators to participate in PG&E’s procurement program,” said Fong Wan, vice president of energy procurement. “Because of minimum size limitations and other economic barriers, such small generators have found it difficult to develop projects and access the market.” Among the four new contracts, PG&E announced its third biogas project in the past five months. The Eden Vale Dairy project, located in Kings County, will deliver 150 kilowatts (kW) of power to customers throughout PG&E’s service area. Biogas provides PG&E provides the dairy farmers in PG&E’s service area with a new source of revenue, and removes methane. Starting in June 2007, the Tunnel Hill Hydro and Buckeye Hydroelectric projects will deliver 600 kW and 400 kW respectively. The fourth contract for a combined heat and power cogeneration facility will deliver 1 MW of power generated by waste heat from sulfuric acid manufacturing. PG&E currently supplies 12 percent of its energy from qualifying renewable sources under California’s Renewable Portfolio Standard (RPS). Renewables sources in PG&E’s portfolio include solar, wind, biomass, geothermal and small hydroelectric. Last week, Pacific Gas and Electric Company (PG&E) issued a Request for Offers (RFO) to solicit renewable energy supply on behalf of its five million electric customers. This marks the company’s fifth renewable energy solicitation pursuant to the State of California Renewable Portfolio Standard (RPS) program.

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