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5 April 2006 -- Pacific Gas and Electric Co. announced April 4 that it plans to provide 1,780 MW in new electrical generation for operation in 2009 and 2010. This is PG&E's first comprehensive investment strategy in electric infrastructure since California's energy crisis in 2000-2001.
"PG&E has taken a momentous step to secure new, clean and reliable electricity supplies to power California's growing economy and replace an aging fleet of power plants," said Tom King, President and CEO of PG&E. "The agreements we are announcing today are part of PG&E's vision of a cleaner future for California and represent the most attractive resources that utilize the latest in fuel-efficient technological advancements in power plant design."
Over the next three years, PG&E expects to expand its energy supply by funding more than $1 billion for various energy efficiency programs and customer demand reduction programs that will eliminate the need for construction of more than 1,000 MW of new generation facilities. Also, the company plans to increase electricity purchased from renewable energy sources at an expected rate of more than 300 MW each year to achieve its goal of providing 20 percent of customers' power from state-eligible renewable sources by 2010. The company will also continue to rely on its network of hydroelectric facilities to supply an additional 18 percent of customer electricity needs.
PG&E has entered into four contracts; one will be owned and operated by PG&E and three will be long-term power purchase agreements operated by other utilities. Under the power purchase agreements, PG&E would provide the fuel and in return receive the capacity, energy and all products generated by the new facilities. PG&E has entered into a fourth agreement to purchase a newly constructed 660-MW power plant that would be owned and operated by PG&E.
The contracts are subject to approval by the California Public Utilities Commission (CPUC). PG&E plans to file an application for approval of the new contracts in mid-April and anticipates that the CPUC would issue its decision by the end of the year. Assuming the CPUC approves the contracts and that permitting and construction schedules are met, the new generation facilities are anticipated to begin delivering power to the grid in the spring of 2009.
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