PG&E Signs Suite of Power Agreements for Clean, Reliable Energy

Pacific Gas and Electric Company has announced a suite of new power agreements, totaling more than 2,000 megawatts, that are expected to provide many years of clean, reliable electricity for the 15 million people it serves in northern and central California.

As part of its commitment to a cleaner energy future, PG&E has entered into new contracts to buy more than 830 MW of renewable generation from solar developers, enough to meet the needs of more than 200,000 average homes. In addition, to enable the utility to reliably increase its use of renewable energy, PG&E asked the California Public Utilities Commission (CPUC) to approve new agreements for power from highly efficient and flexible natural gas-fired plants that can balance the fluctuating output of wind and solar resources.

“Taken together, these agreements reflect PG&E’s comprehensive energy strategy to meet our customers’ future power needs with clean energy solutions,” said Fong Wan, Senior Vice President, Energy Procurement at PG&E. “Consistent with state policy, we are building our portfolio to ensure affordable and reliable energy services while moving as quickly as possible to meet California’s renewable power goals.”

The agreements sent to the CPUC grew out of a competitive solicitation last year to identify long-term power projects with the best customer value. They include two proposed new facilities in Contra Costa County and an existing cogeneration plant in Kern County, owned by Midway Sunset Cogeneration Company, which efficiently uses natural gas for electricity generation and waste heat for industrial processes.

One of the proposed new facilities is a flexible and efficient 719 MW peaker plant near Antioch to be owned by a subsidiary of Mirant Corporation. It is scheduled to be completed by mid-2013. Separately, Mirant has agreed with PG&E to shut down in 2013 its Contra Costa units 6 and 7—older, less efficient generators that rely on water from the Delta for once-through-cooling.

If approved by the CPUC, PG&E plans to purchase, own and operate the other proposed new facility, a state-of-the-art 586 MW plant in Oakley, after it becomes operational as planned in 2014. This plant would be air cooled.

Return to November 2009 Western Energy News

To sponsor Western Energy News, please contact WEI at 503 231-1994.