Pacific Gas and Electric Company issues requests for offers to meet its customers’ long-term electricity needs

SAN FRANCISCO, Nov. 4, 2004 (PRNewswire-FirstCall) — Pacific Gas and Electric Company announced it has issued two Requests for Offers (RFOs) to ensure sufficient, reliable power to meet the long-term electricity needs of its customers. One RFO is for long-term power contracts and the other is for utility-owned generation facilities. Through these RFOs, the company seeks approximately 2,200 megawatts of power between 2008 and 2010 — approximately 1,200 megawatts by 2008 and an additional 1,000 megawatts by 2010.

The RFOs are part of PG&E’s overall strategy, which is consistent with the priorities for energy resources established in the state’s multi-agency Energy Action Plan — expanding conservation and other demand side management programs and through additions to the renewable generation portfolio. PG&E expects to use the two RFOs to meet the remainder of its power needs.

In its long-term resource plan, filed with the California Public Utilities Commission (CPUC) in July 2004, PG&E proposed meeting long-term power needs through a balanced portfolio of 50 percent utility-owned generation facilities and 50 percent wholesale generator contracts.

“We believe a supply that balances utility-owned power plants and long- term contracts from power generators is the best way to meet our customers’ growing electricity needs at a reasonable cost,” said Fong Wan, Pacific Gas and Electric Company’s vice president of power contracts and electric resource development. “We recognize the importance of having a diverse resource mix. That is why our proposal includes more environmentally friendly, renewable resources and energy efficiency programs along with power from traditional sources.”

The RFO for utility-owned generation facilities seeks bids from power plant owners/developers to provide newly built, dispatchable “turnkey” generation facilities. PG&E will consider all generation fuel types and technologies that are 25 megawatts or larger. (See RFO for the complete list of criteria and eligibility requirements.)

The RFO for long-term contracts seeks bids from power plant owners/developers to enter into agreements to provide peaking or shaping power. The company will consider offers that are 25 megawatts or greater. PG&E will also consider offers from Qualifying Facilities that can produce 1 megawatt or more of power. (See RFO for the complete list of criteria and eligibility requirements.)

The expected schedule for both RFOs is:

* November 2, 2004 – Issue the RFOs
* January 14, 2005 – Initial offers due
* March 2005 – PG&E selects shortlist
* April 2005 – Final offers due from shortlist participants
* June 2005 – PG&E selects winning participants, executes contracts, and submits contracts for CPUC approval.

Currently, the company is going through a process to secure additional renewable resources through long-term contracts and power for the intermediate term (up to five-years). The CPUC is expected to issue a final decision on the long-term resource plan by the end of the year.

Along with PG&E’s renewable generation solicitation, these RFOs mark the company’s first solicitations for long-term power contracts and new power plants since emerging from Chapter 11. For more information on the RFOs for long-term resources, please visit www.pge.com/suppliers_purchasing/.

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

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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