If approved by the California Public Utilities Commission, the agreement would replace an existing contract and provide SCE customers with renewable energy for 10 years. The contract also increases Calpine's electricity deliveries by 25 MW. Additionally, a new SCE-Calpine agreement provides 714 MW from the Pastoria Energy Facility of "resource adequacy," a California regulatory requirement that utilities ensure adequate generating resources exist to meet customer demand.

"These new Calpine agreements are significant as we work toward meeting the goals of California's landmark renewable portfolio standard," said Stuart Hemphill, SCE director of renewable and alternative power. "By 2010, we hope to have contracts which, when fully operational, will represent 20 percent or more of our customers' energy needs."

"Calpine is very pleased to have executed a large transaction with SCE. This agreement resolves a number of outstanding issues and significantly expands our business relationship," said Thomas N. May, Calpine's Executive Vice President of Commercial Operations. "We look forward to pursuing further business opportunities with this important customer."

Because Calpine is involved in a bankruptcy reorganization proceeding, today's agreements are subject to approval by the court overseeing that case.

While pursuing additional renewable energy sources, SCE also is making progress on the largest challenge California faces as it moves toward its goal of 20% renewable energy - developing new transmission lines linking untapped renewable resources.

An Edison International (NYSE:EIX) company, Southern California Edison is one of the nation's largest electric utilities, serving a population of more than 13 million via 4.7 million customer accounts in a 50,000-square-mile service area within central, coastal and Southern California.