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12 March 2007 -- San Diego Gas & Electric (SDG&E) announced it is launching a competitive bid process for new electricity resources that will be needed for reliability starting in 2010. Overall, SDG&E is seeking a minimum of 700 MW of energy through a combination of demand-response (conservation) and generation projects.

"We currently have several power contracts with the California Department of Water Resources that will expire over the next few years and that electricity must be replaced," said Terry Farrelly, SDG&E's vice president for electricity and gas procurement. "This latest solicitation is the next step in implementing our long-term resource plan to make sure we can meet our customers' energy demands now and in the future."

SDG&E seeks to implement demand-response contracts with businesses that will serve to lower peak demand through voluntary reduction of energy use in exchange for a lower rate. The southern California utility also needs at least 200 MW from new peaker plants that can meet sudden surges in electricity demand. Making up the largest section of its future supply, SDG&E needs 500 MW of baseload generation from a power plant in or outside its service territory that could run around the clock.

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