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PG&E Seeks to Increase Renewable Energy Resources for its Customers


Pacific Gas and Electric Company announced today that it has issued a Request for Offers (RFO) to solicit renewable energy supply on behalf of its five million electric customers. This marks the company's fifth renewable energy solicitation pursuant to the State of California Renewable Portfolio Standard (RPS) program.

"With the 2007 RPS solicitation, the company continues to seek increased supplies of renewable energy," said Fong Wan, vice president of energy procurement. "PG&E intends to sign contracts equaling 1-2% of its demand in order to achieve a 20 percent renewable power goal by 2010."

The utility currently supplies 12 percent of its energy from qualifying renewable sources under California's Renewable Portfolio Standard (RPS) - one of the highest volumes of any utility in the United States. Renewables sources in PG&E's portfolio include solar, wind, biomass, geothermal, and small hydroelectric. In addition, more than 50 percent of the electricity that PG&E delivers to its customers comes from generating resources that emit no or low carbon dioxide, the primary contributor to global warming.

Similar to the 2006 solicitation, the renewable energy projects may be proposed in the form of power purchase agreements from generation sources owned and operated by others, or new generation facilities constructed for utility ownership, or sites suitable for development of renewable energy projects. PG&E will accept deliveries anywhere in California, thereby potentially avoiding uneconomic transmission cost.

A bidders conference is scheduled for April 3 and offers are due on May 31. PG&E intends to enter into contracts and seek CPUC approval during the third and fourth quarters of 2007. Parties interested in the RFO may obtain solicitation documents by visiting http://www.pge.com/rfo.

The 2007 RPS solicitation will be PG&E's fifth competitive solicitation for renewable energy since 2002. Since then, the company has entered into contracts for over 1000 MW of renewable power. California's RPS Program requires each utility to increase its procurement of eligible renewable generating resources by 1% of load per year, so PG&E anticipates additional renewable solicitations in future years as well. The RPS Program was passed by the California State Legislature in 2001 and is managed by California's Public Utilities Commission and Energy Commission.





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