Pacific Gas and Electric to buy wind power project

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San Francisco, December 3, 2009 – Pacific Gas and Electric Company (NYSE: PCG) contracted with Iberdrola Renewables, Inc. to buy and operate a wind energy plant to be built in Southern California.

The proposed Manzana Wind Project, with a power capacity of up to 246 MW, would be the first wind power project owned by PG&E. It follows a proposal by the utility in February 2009 to develop and own 250 MW of solar photovoltaic power.

Iberdrola Renewables is the U.S. arm of Iberdrola Renovables, based in Valencia, Spain, which is one of the world’s largest renewable energy companies.

The Manzana project would be located on about 7,000 acres in the Tehachapi region of Eastern Kern County, a site with favorable wind resources. If approved by the California Public Utilities Commission, the project could begin producing power by December 2011.

With a projected annual output of up to 670 GWh per year, equal to the energy consumed by about 100,000 average homes, the Manzana project would contribute significantly to PG&E’s efforts to meet California’s Renewable Portfolio Standard. (Click here to read about Pacific Gas and Electric power generation projects)

The total capital cost of the Manzana project will be just over $900 million, which includes payments to Iberdrola Renewables to develop and build the facility, along with other costs that PG&E will incur. PG&E will make progress payments as significant milestones are met.

Pacific Gas and Electric Company, a subsidiary of PG&E Corp., is one of the largest combined natural gas and electric utilities in the United States. Based in San Francisco, with 20,000 employees, the company delivers electricity to 15 million people in northern and central California.



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