SAN DIEGO, June 9, 2004 (PRIMEZONE) -- The California Public Utilities Commission (CPUC) today approved San Diego Gas & Electric's (SDG&E) comprehensive plan that will enable the utility to meet the growing energy needs of its customers. In addition to demand-response programs, and new renewable resources, the CPUC approved the first new large-scale power plants in the San Diego region in more than 25 years.
"We are pleased that the Commission has recognized the need for new energy infrastructure in the San Diego region and has taken this important step to approve clean, efficient energy resources that are the least cost and best fit to meet our customers' growing energy and reliability needs," said Edwin A. Guiles, Chairman & CEO, SDG&E. "Without new energy resources our customers would face an energy shortage as soon as next year. Today's decision will go a long way toward meeting those needs," he added.
In January 2003, the state legislature returned SDG&E to its role of planning for and procuring energy resources on behalf of its customers. To meet this new role SDG&E conducted an open and competitive solicitation in May 2003.
SDG&E received 13 competitive bids that met this goal. The proposal put forward by SDG&E addressed needs highlighted by SDG&E's long-term resource plan. In recommending that the projects be approved, the CPUC praised SDG&E's efforts. The Decision states, "We find that the process was open, competitive, and adequately subscribed. Moreover, we find that SDG&E's RFP process was consistent with Pub. Util. Code Section 454.5(c)(1), and that the contracts and turnkey projects resulting from this RFP process, and their cost recovery and ratemaking mechanisms, will allow SDG&E to serve the needs of its customers at just and reasonable rates, will benefit consumers, and are in the public interest."
The projects approved today include:
Demand Response: A contract with Comverge to install devices on air-conditioning systems of small and medium-sized commercial customers to cycle power during peak-use periods. The amount of load reduction will be more than 30 MW by 2007 with about 9 MW in 2005 and 19.5 MW by 2006. A contract with Celerity to upgrade customer-owned backup generation and install devices so that this generation can be operated remotely by the utility. The amount of load reduction from this program will be approximately 25 MW by 2006.
Renewable Supply Resource: A 15-year contract with Envirepel to provide 40 MW of firm capacity generated from biomass or "green waste," (which is mainly wood, paper and agricultural by-products). As well as producing electricity, this technology helps reduce the volume of solid waste entering the landfill.
Intermediate-Load Unit: Purchase of an intermediate-load, combustion turbine unit from Ramco that can generate 45 MW. This unit, which will be ready by summer 2005, can be started up quickly to help SDG&E meet electricity demand.
Base-Load, Combined-Cycle Power Plant: Turnkey purchase of the combined-cycle Palomar Energy plant in Escondido that will produce about 550 MW and will be available by summer 2006.
10-Year Purchase-Power Agreement: Contract to buy up to 570 MW of electricity over 10 years, starting in 2008. The bidder, Calpine Corp., will finish building the power plant on its Otay Mesa site, which already has received all required approvals and permits. SDG&E is a regulated public utility that provides safe and reliable energy service to three million consumers through 1.3 million electric meters and more than 800,000 natural gas meters in San Diego and southern Orange counties. Exceptional customer service is a priority of SDG&E as it seeks to enhance the region's quality of life. SDG&E is a regulated subsidiary of Sempra Energy (NYSE:SRE). Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company. To learn more, go to www.sdge.com.