PG&E Requests 400 MW More in Renewable Energy

Pacific Gas and Electric Company (PG&E) is asking suppliers to submit competitive bids to provide the utility with 400 megawatts (MW) of additional renewable power resources in order to meet state goals and increase the clean energy available for its five million customers. Typical sources of renewable energy include power generated from solar, wind, small hydroelectric, geothermal, biomass, landfill gas, and various ocean technologies.

This Request for Offers (RFO) marks the company’s fourth solicitation since 2002 to significantly build its renewable energy portfolio as part of California’s Renewable Portfolio Standard (RPS) program, which calls for utilities to deliver 20% of their power from qualified renewable resources by the year 2010. “PG&E customers already get their power from one of the most progressive and climate friendly mixes of resources in the entire country,” said Fong Wan, vice president of energy procurement. “Adding new supplies through this latest effort will enable us to continue to diversify our energy supply.” As a result of its efforts since 2002, the company has entered into contracts for 668 MW of renewable power and we expect to be adding additional contracts as we finalize our 2005 solicitation. The utility currently supplies 32% of its customer load from renewable or alternative resources — 20% from its large hydroelectric facilities and 12% from small hydro and other renewable resources that qualify under California’s RPS Program. New for 2006, PG&E is seeking offers for sites for development of renewable energy projects by PG&E, which will accept deliveries anywhere in California or out-of-state generation delivered to California. Thus suppliers have the option to offer power purchase agreements (PPAs) from new generation sources owned and operated by others or to construct new generation facilities for ownership by PG&E. PG&E issued its 2006 RPS solicitation on June 30, 2006, with a pre-bid conference scheduled for July 20. Offers are due on September 8. PG&E has a goal to enter into contracts and seek CPUC approval during the fourth quarter of 2006 and the first quarter of 2007. Parties interested in the RFO may obtain bid documents at PG&E’s RFO website (use link below).
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