SCE signs large new renewable energy contracts

Southern California Edison, a division of Edison International (NYSE: EIX), today announced six new renewable energy contracts that could provide the utility’s customers with up to 480 megawatts (MW) more of renewable energy.

One of the contracts is a deal for 50 baseload MW from a geothermal plant under construction by Ormat Technologies in Imperial County, California. The power purchase agreement (PPA), which includes an option to increase capacity to 100 MW, is to be the Reno, California-based company's biggest agreement to date.

A second geothermal contract for 50 baseload MW was signed with Caithness Energy for energy from a facility in Dixie Valley, Nevada.

Two new wind contracts are to tap wind resources in Apple Valley, and as much as 250 MW from what SCE calls a "promising new source of wind energy" from the Baja Peninsula of Mexico with new California renewable provider Sempra Generation.

Additionally, SCE has signed a 1.4 MW baseload biomass contract with L.A. County Sanitation based on a new power contracting option the utility introduced in May 2007 to help smaller biomass generators.

Finally, 1 MW of solar energy is to be added to the portfolio through a photovoltaic proposal from California Sunrise.

“We applaud our suppliers’ commitment to renewable energy,” said Stuart Hemphill, SCE’s director of renewable and alternative power.

“The clean power generated as a result of these contracts will contribute significantly to California’s ambitious greenhouse gas reduction and renewable energy goals.”

The new contracts have resulted from a renewable energy solicitation last year. SCE plans to seek approval of the agreements from the CPUC in the near future.

SCE leads the nation in renewable power delivery, procuring about 13 billion kilowatt-hours of renewable energy per year, more than any U.S. utility.

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