San Diego, CA, June 12, 2007 — San Diego Gas & Electric (SDG&E) announced it has signed a supply contract with Envirepel Energy Inc. for biomass energy that will be online by October 2007. SDG&E also reported that it has received nearly 5,000 megawatts (MW) of renewable energy supply proposals in response to the utility’s most recent renewable request for offers (RFO) solicitation.
Every year since 2002, SDG&E has solicited supply bids for renewable power to meet California’s mandate of having 20 percent of its energy portfolio come from clean resources such as wind, solar, biomass and geothermal by 2010. Envirepel’s agreement is the result of an earlier competitive solicitation. Biomass power results from burning plant-based materials such as wood.
SDG&E’s contract with Envirepel will be submitted to the California Public Utilities Commission (CPUC) for review and final approval. SDG&E’s final selection of the renewable-energy bids will be based on least-cost, best-fit procurement criteria and will be reviewed by the Procurement Review Group, comprised of CPUC staff, consumer advocates and other non-market participants, and an independent evaluator prior to being submitted to the CPUC for final approval.
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