PG&E adds renewable geothermal energy to electric mix

San Francisco, CA, Mar. 7, 2006 — Pacific Gas and Electric Co. (PG&E) announced it has entered into a contract with Military Pass – Newberry Volcano Project LLC to purchase up to 120 megawatts (MW) of renewable geothermal energy resources to help meet its customers’ future electricity needs. Electric generation from this renewable energy resource will provide enough power to supply nearly 100,000 PG&E customers.

PG&E has a long history of developing, generating, and purchasing renewable power. The utility currently supplies 30% of its customer load from renewable resources: 18% from its large hydroelectric facilities and 12% from smaller renewable resources that qualify under the State’s Renewable Portfolio Standard (RPS) Program. PG&E is aiming towards its goal of supplying 20% of customer needs with qualifying renewable energy under the RPS program.

This is the final contract originating from the 2004 RFO solicitation and brings the total renewable generation added as a result to 353 MW. PG&E is currently in discussion with certain market participants that submitted bids in the 2005 RFO solicitation and will be submitting additional contracts for renewable energy in the next few months.

To continue to increase its renewable energy portfolio, PG&E recently filed protocols with the CPUC for its 2006 renewable energy procurement solicitation. In this upcoming solicitation for additional generation from renewable resources, the company is seeking to procure an additional 1-2 percent of its customers’ electricity needs through renewable sources. PG&E anticipates issuing the solicitation in early summer, after receiving the necessary CPUC approval. The 2006 RPS solicitation will be PG&E’s fourth competitive solicitation for renewable energy since 2002. Since then, it has entered into contracts for 563 MW of renewable power from wind, geothermal, biomass, and hydro resources.

California’s RPS Program requires each utility to increase its procurement of eligible renewable generating resources by 1% of load per year to achieve a 20% renewable energy sources goal. The RPS Program was passed by the Legislature and is managed by California’s Public Utilities Commission and Energy Commission.

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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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