Pacific Gas and Electric Company's Agricultural Customers Can Help Reduce Air Pollution by Signing Up for New Incentive Program

 

SAN FRANCISCO, Aug 01, 2005 /PRNewswire-FirstCall

 

Pacific Gas and Electric Company today launched an incentive program designed to encourage agricultural customers to help improve air quality in California by retiring stationary diesel engines used for irrigation pumping and replacing them with clean and efficient electric motors.

Beginning today, agricultural customers can submit applications for the new incentive program Agricultural-Internal Combustion Engine Conversion Incentive program (AG-ICE). AG-ICE offers reduced electricity rates in exchange for permanently retiring a stationary diesel engine used for irrigation pumping. The program developed by PG&E in concert with agricultural customer groups, was approved by the California Public Utilities Commission to be launched statewide and available to eligible customers within PG&E's and Southern California Edison's service area.

Eligible customers will be placed on a rate that is currently 20 percent below the standard agricultural rate which is meant to be competitive with the cost of operating a diesel engine at $1.15 per gallon. The lower average electric rate of 7.5 cents per kilowatt hour under the AG-ICE program is meant to encourage customers to switch to electricity-the preferred air quality alternative. The program also provides additional incentives to assist farmers with new electricity hook-ups for the pumps.

The program will help customers improve air quality by replacing air- polluting diesel engines with electric motors that reduce emissions by approximately 98 percent. It is estimated there are approximately 8,000 diesel engines used for irrigation pumping in the state. According to the California Air Resources Board (CARB), diesel powered pumps are significant contributors to air pollution-especially in the San Joaquin and Sacramento Valleys-already suffering some of the poorest air quality in the nation. During 2003, diesel powered irrigation pumps contributed 23% of the nitrogen oxides (NOx), 17% of the particulate matter (PM 10) and 31% of the reactive organic gases (ROG) of all stationary sources in the Valley region.

"Converting diesel irrigation pumps to electricity, a near-zero emissions source, is the best available control method for that equipment and will result in significant short term improvements to air quality, said Catherine Witherspoon, executive director of the CARB. "We've been working on this strategy for a while and are gratified to see it finally come to fruition, thanks to the cooperation of the utilities and the Administration."

The AG-ICE program is also supported by a number of other agencies including the California Farm Bureau Federation, Agricultural Energy Consumers Association, California Resources Agency and the Natural Resources Defense Council.

"This is a classic example of the business community working with government regulators to achieve a common-sense solution to critical air quality issues," said Michael Boccadoro, executive director of the Agriculture Energy Consumers Association. "Rather than spending millions of dollars retrofitting these diesel engines to reduce emissions, through this program we are eliminating virtually all emissions while dramatically enhancing the environment and the air valley residents breathe. This is a win-win-win situation."

All agricultural customers who have been operating a stationary diesel engine (greater than 50 horsepower) for irrigation pumping prior to September 1, 2004 in PG&E's service area are eligible to apply for this incentive program. Customers will have two years to sign-up for the program. The new rate schedule will remain in effect through 2015. The incentive rate will only increase 1.5 percent each year during the 10-year program, providing farmers with rate certainty. The rate is also designed to encourage customers to irrigate during off peak hours to minimize impacts to the state's electric load.

Customers can learn more about the program details or download an application by logging on to www.pge.com/agice  or calling PG&E's Business Customer Service Center (800) 468-4743.

For More Information on AG-ICE Visit PG&E's Website at www.pge.com/agice .

SOURCE Pacific Gas and Electric Company

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