Southern California Edison Signs Largest Wind Energy
Contract in U.S. Renewable Industry History
Dec 21, 2006 Business Wire
New renewable contracts will supply SCE customers
with equivalent of two major power plants.
ROSEMEAD, Calif., Dec. 21, 2006 - Southern California
Edison (SCE), the nation's leading purchaser
of renewable energy, today signed a ground-breaking
wind energy contract that will provide the utility's
customers with a major new source of emission-free
The agreement with Alta Windpower Development LLC,
a subsidiary of Allco Financial Group Inc. of Australia,
a global financial-services business, is the largest
wind energy contract ever signed by a U.S. utility.
It secures for SCE customers 1,500 megawatts* (MW)
or more of power generated by new projects to be built
in the Tehachapi area of California. The contract,
which more than doubles SCE's wind energy portfolio,
envisions more than 50 square miles of wind parks
in the Tehachapi region - triple the size of any existing
U.S. wind farm. Oak Creek Energy Systems Inc.
of Mojave, Calif., is a partner with Allco in the
development, construction, and operations of the projects.
Coupled with other renewable energy contracts signed
today, and seven signed on Nov. 17, 2006, these agreements
bring to 1,889 MW the amount of environmentally sensitive
power resulting from SCE&'s 2005 competitive renewable
energy solicitation - the equivalent of two major,
traditional power plants and enough generation to
serve one million average homes.
SCE also signed a new contract with Chateau Energy
to purchase 15 MW of power from a biomass facility
in the Mesquite Lake area of Imperial County and signed
an amendment to an existing contract with Edom Hill
that will allow Edom's wind project to increase its
capacity to 20 MW by "repowering," upgrading
technology to more efficiently capture additional
"In order to finance new, environmentally friendly
power projects, developers need long-term contracts
with creditworthy buyers," said Pedro Pizarro,
SCE's senior vice president of power procurement."We are pleased to play this critical role in
the partnerships required to help the renewable energy
industry achieve its full potential."
"It is fitting that we are launching the largest
wind project in the U.S. in a state that is a renewable
energy leader and with the leading utility in renewable
development," said Steen Stavnsbo, head of Allco
Wind Energy." "We are grateful for the
positive working relationship with SCE that has made
this exciting venture possible.";
"We are pleased our long-term commitment to
the Tehachapi area is helping to produce such a ground-breaking
project," said Hal Romanowitz, president of
Oak Creek Energy Systems. "This project
combines the strengths of industry leaders in a way
that will have great value for the people of California."
"I applaud Southern California Edison for this
historic wind energy contract," said Michael
R. Peevey, president of the California Public Utilities
Commission (CPUC). "This contract will
help California move closer to its goal of generating
20% or more of our electricity with clean, renewable
energy. Edison's achievement further highlights
the importance of the work state policymakers and
utilities are doing to expand the state's transmission
grid so projects such as these can become a reality."
New Renewable Contracts
|Alta Windpower Development
||Mesquite Lake, CA
Previously Announced Winning Bidders in SCE's
'05 Renewable Power Solicitation
|Coso Clean Power
||Little Lake, CA
|MM Tajiguas Energy
|Imperial Valley Resource Recovery Co.
||Imperial Valley, CA
|Caithness 251 Wind
|Caithness 251 Wind
SCE will submit the procurement contracts to the
CPUC, which will decide whether they are reasonable
commitments to make on behalf of SCE's customers.
"Our 2005 renewable energy solicitation produced
excellent results," said Stuart Hemphill, SCE's
director of renewable and alternative power.
"We have already initiated our 2006 solicitation.
The response has been robust, and we are now in discussions
regarding many potential future projects."
The success of the large wind project announced today
depends on SCE receiving authorization from the CPUC
and other regulatory agencies to construct a series
of new and upgraded high-voltage transmission lines
that would deliver electricity from potential new
wind farms in the Tehachapi area. Several such
wind projects are in varying stages of planning and
development. When completed, this renewable
transmission project would be capable of delivering
4,500 MW of electricity, enough energy to supply almost
three million homes.
- SCE currently serves between 16% and 17% of its
customers needs with renewable energy, and
is working toward a goal of having at least 20%
of its power supplied by renewable generators.
- SCE leads the nation in renewable power delivery,
procuring more than 13 billion kilowatt-hours of
renewable energy per year, more than any U.S. utility
or state except for California.
- SCE's renewable portfolio, described below,
currently can deliver more than 2,700 MW of electricity.
Recent contracts added to the portfolio will increase
its capacity when they begin to operate.
- 1,021 MW from wind
- 892 MW from geothermal
- 354 MW from solar
- 221 MW from biomass
- 128 MW from SCE-owned small hydro**
- 95 MW from independently owned small hydro.
* One MW is enough power at a point
in time to serve 650 average homes in SCE's
** Six of the 36 hydroelectric projects SCE operates
today have generated power for more than a century.
# # #
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.