SAN FRANCISCO, June 29, 2006 /PRNewswire-FirstCall

 

In an effort to increase the amount of clean energy available for its five million electric customers and meet state goals, Pacific Gas and Electric Company announced today it is asking suppliers to submit competitive bids to provide the utility with additional renewable power resources. This Request for Offers (RFO) marks the company's fourth solicitation since 2002 to significantly build its renewable energy portfolio as part of California's Renewable Portfolio Standard (RPS) program. The program calls for utilities to deliver 20 percent of their power from qualified renewable resources by the year 2010. In this solicitation, PG&E will seek to procure up to 400 megawatts of renewable power.

"PG&E customers already get their power from one of the most progressive and climate friendly mixes of resources in the entire country," said Fong Wan, vice president of energy procurement. "Adding new supplies through this latest effort will enable us to continue to diversify our energy supply and move toward our goal of 20 percent RPS-eligible power by 2010."

As a result of its efforts since 2002, the company has entered into contracts for 668 megawatts of renewable power and we expect to be adding additional contracts as we finalize our 2005 solicitation. The utility currently supplies 32 percent of its customer load from renewable or alternative resources-20 percent from its large hydroelectric facilities and 12 percent from small hydro and other renewable resources that qualify under California's RPS Program -- one of the highest volumes of any utility in the United States. In total, nearly half of PG&E's retail load is served from generating resources that have no CO2 emissions that contribute to global warming.

This strong commitment to renewable power recently helped earn the company the annual Keystone Center Leadership in Industry Award. The center cited PG&E's accomplishments across a range of critical areas, notably for leadership in developing initiatives in energy efficiency, renewable energy, and global climate change.

Similar to the company's 2005 renewable power solicitation, suppliers have the option to offer power purchase agreements from new generation sources owned and operated by others or to construct new generation facilities for ownership by PG&E. New for 2006, PG&E also is seeking offers for sites for development of renewable energy projects by PG&E. PG&E will accept deliveries anywhere in California or out-of-state generation delivered to California.

PG&E will issue its 2006 RPS solicitation on Friday, June 30, 2006, with a pre-bid conference scheduled for July 20. Offers are due on September 8. PG&E has a goal to enter into contracts and seek CPUC approval during the fourth quarter of 2006 and the first quarter of 2007. Parties interested in the RFO may obtain bid documents at PG&E's RFO website www.pge.com/renewableRFO. Typical sources of renewable energy include power generated from solar, wind, small hydroelectric, geothermal, biomass, landfill gas, and various ocean technologies.

California's RPS Program requires each utility to increase its procurement of eligible renewable generating resources by 1% of load per year, so PG&E anticipates additional renewable solicitations in future years as well. The RPS Program was passed by the California State Legislature in 2001 and is managed by California's Public Utilities Commission and Energy Commission.

For more information about Pacific Gas and Electric Company, please visit the company's web site at www.pge.com .

SOURCE Pacific Gas and Electric Company

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