SCE Expands Renewable Energy Partnership with Calpine

Southern California Edison (SCE) has reached an agreement with renewable energy generator Calpine to purchase 225 megawatt (MW) of geothermal energy; the generation would come from Calpine’s Geysers facilities in California’s Sonoma and Lake counties.

If approved by the California Public Utilities Commission (CPUC), the agreement would replace an existing contract and provide SCE customers with renewable energy for 10 years. The contract also increases Calpine’s electricity deliveries by 25 MW. Additionally, a new SCE-Calpine agreement provides 714 MW from the Pastoria Energy Facility of “resource adequacy,” a California regulatory requirement that utilities ensure adequate generating resources exist to meet customer demand. “These new Calpine agreements are significant as we work toward meeting the goals of California’s landmark renewable portfolio standard,” said Stuart Hemphill, SCE director of renewable and alternative power. “By 2010, we hope to have contracts which, when fully operational, will represent 20 percent or more of our customers’ energy needs.” Because Calpine is involved in a bankruptcy reorganization proceeding, today’s agreements are subject to approval by the court overseeing that case. While pursuing additional renewable energy sources, SCE also is making progress on the largest challenge California faces as it moves toward its goal of 20% renewable energy — developing new transmission lines linking untapped renewable resources.
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