SDG&E Adds Solar Energy to Its Portfolio From Imperial County

May 17, 2010 - Marketwire - renewablesbiz.com

San Diego Gas & Electric (SDG&E) today announced that it has signed a 20-year power-purchase agreement with an LS Power subsidiary to procure up to 130 megawatts (MW) of solar energy from the proposed Centinela Solar Energy facility in the Imperial Valley, helping to solidify the company's commitment to employ the future Sunrise Powerlink to transmit clean, renewable energy.

"Renewables are the lynchpin of SDG&E's commitment to becoming the quintessential utility of the future," said Jessie J. Knight, Jr., chief executive officer of SDG&E. "We are accessing large amounts of environmentally-friendly power and developing infrastructure and smart technology to bring it to our communities. These advances provide tangible benefits for our customers."

Upon completion in 2014, the new Centinela Solar Energy facility will send up to 130 MW of solar power to SDG&E's service territory across the Sunrise Powerlink, a 120-mile, 500-kilovolt electric transmission line which was designed to tap into the vast renewable resources of the Imperial Valley. When completed in 2012, the new power line is expected to carry up to 1,000 MW of electricity. Without the Sunrise Powerlink, many renewable energy facilities in the Imperial Valley have no clear path to the San Diego market.

"This contract is the result of diligent efforts focused on cultivating local solar, wind and geothermal resources for San Diego," said Michael R. Niggli, president and chief operating officer of SDG&E. "It will help us fill the Sunrise Powerlink with green power and meet the state's aggressive renewable goals."

"We are proud to secure this clean energy contract with SDG&E and move forward with this project," said John King, executive vice president of LS Power. "The Imperial Valley is an excellent location to develop solar power and we look forward to working with SDG&E and Imperial County to make this project a reality. The emissions-free power produced by this facility will energize local communities and help protect the environment."

The Centinela Solar Energy facility will employ photovoltaic technology on a 1,150-acre site near Calexico, Calif., an area that is ideal for producing solar power due to abundant desert sunlight. The facility will generate emissions-free energy without the use of water, an important consideration in the arid desert of the Pacific Southwest. In addition to producing clean electricity, the solar project represents a $500-million economic investment in Imperial County and will create hundreds of area construction jobs.

"This is great news for the Imperial Valley," said Tim Kelley, chief executive officer of the Imperial Valley Economic Development Corporation. "Renewable energy has the potential to become one of the pillars of the local economy, as long as we have the Sunrise Powerlink to bring it to market. This vital infrastructure project is a win-win for the Imperial Valley and San Diego and will help our region become a national leader in renewable energy development."

The up to 130 MW contract is one of several agreements with Imperial Valley renewable energy developers for delivery of power to customers over the Sunrise Powerlink. Securing renewable energy from the Imperial Valley is a key focus of SDG&E's power purchase efforts.

Under the new contract, which runs through 2033, the photovoltaic facility will produce enough "green" power for approximately 45,000 households. The contract requires approval from the California Public Utilities Commission.

The project will help SDG&E meet California's mandate to procure 20 percent of its power from renewable resources by 2010 and the company's voluntary commitment of 33 percent by 2020.

About SDG&E SDG&E is a regulated public utility that provides safe and reliable energy service to 3.4 million consumers through 1.4 million electric meters and more than 840,000 natural gas meters in San Diego and southern Orange counties. The utility's area spans 4,100 square miles. SDG&E is committed to creating ways to help our customers save energy and money every day. SDG&E is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company based in San Diego.

About LS Power LS Power is a power generation and transmission group with a proven track record of successful development activities, operations management and commercial execution. LS Power has been involved in the development, construction, or operations of over 20,000 MW of power generation throughout the United States. LS Power is actively developing both power generation and transmission infrastructure to serve the need for new generation and improve the aging transmission system. Highly regarded in the financial community, LS Power has raised over $13 billion to support investment in energy infrastructure since 2005. For more information, visit www.LSPower.com.

 Media Contacts:  Jennifer Ramp  San Diego Gas & Electric  (877) 866-2066  www.sdge.com   Eric Crawford LS Power (925) 201-5234  Email Contact   

SOURCE: San Diego Gas & Electric