Sempra Generation acquires Hawaii wind power project

Maui-based wind and battery-storage facility could start operations in 2012

Oct 15, 2009

Media Contact:
Art Larson

Financial Contact:
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Sempra Energy

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         SAN DIEGO, Oct. 15, 2009 – Sempra Generation, a subsidiary of Sempra Energy (NYSE: SRE), today announced it has acquired Auwahi Wind Energy LLC, a company developing a 22-megawatt (MW) wind energy and battery storage project in Maui, Hawaii, from Shell WindEnergy Inc., a subsidiary of Royal Dutch Shell.  
 
        The proposed Auwahi Wind Energy project could begin construction in 2011 and commence commercial operations in 2012 on the Ulupalakua Ranch in the remote southeastern region of Maui.
 
        Terms of the agreement were not disclosed. 
 
        “Consistent with our growing renewable presence in the southwestern United States, this project further expands Sempra Generation’s footprint in one of the fastest growing renewable energy markets while further advancing the sustainability goals of Maui and the state of Hawaii,” said Michael W. Allman, president and chief executive officer of Sempra Generation. 

        An important component of the Maui wind-power project is the development of a battery energy storage unit.   The battery could store as much as 28 megawatt-hours (MWh) of wind energy generated by the project’s windmills during the typically windy morning and night hours.  The battery power could be stored until late afternoon, when electricity consumption typically reaches its peak, or could be utilized to regulate and smooth intermittent wind power, providing a valuable source of grid stability for Maui Electric. 
 
        Sempra Generation recently submitted a proposal to the U.S. Department of Energy to co-fund costs associated with an expansion of the battery energy storage facility to 72 MWh. 

        The integrated wind and battery energy storage project could serve as a prototype to help maximize the energy output of other wind power projects in Hawaii and throughout the world.

        “Shell WindEnergy Inc. has re-assessed its wind development efforts in Hawaii and will concentrate on projects on the U.S. Mainland and Canada that are more aligned with our strategic direction,” said Dick Williams, president of Shell WindEnergy Inc.  “Our portfolio consists of eight wind farms on the U.S. Mainland with a total capacity of almost 900 megawatts. Going forward, we will continue to support Shell’s overall strategy of diversifying its energy mix by developing energy sources that have low carbon emissions."
 
        The project would help Maui attain its goal of achieving 95 percent of its electricity from renewable sources by 2020. 
 
        In 2008, the state of Hawaii and the U.S. Department of Energy set goals associated with the state’s Clean Energy Initiative. The goal of the initiative is to increase power conservation and help lower the almost exclusive use of oil for island power generation by accelerating the development of renewable, indigenous energy resources in Hawaii, such as Auwahi Wind.  This goal involves employing efficiency and renewable energy resources that meet 70 percent of Hawaii’s energy demand by 2030.
 
        Sempra Generation has several wind and solar energy projects underway.  The company recently announced its 50-50 investment with BP Wind in the second phase of the Fowler Ridge Wind Farm, the Midwest’s largest wind power project.  The 200-MW Benton County, Ind., facility is slated for completion in 2010.
 
        Another Sempra Generation wind project slated for completion in 2012 is Energía Sierra Juárez.  In its first phase, the wind farm will generate between approximately 100 MW to 125 MW of power from turbines to be installed about 70 miles southeast of San Diego in Baja California, Mexico.  Potential future phases of Energía Sierra Juárez could grow to generate as much as 1,000 MW of clean wind energy.
 
        In 2008, Sempra Generation completed the construction of North America’s largest thin-film solar power plant, El Dorado Solar.  The plant is located near Las Vegas and is capable of generating 10 MW of solar energy.   El Dorado Solar’s output is fully contracted for 20 years.  A new 48-MW solar project, located adjacent to El Dorado Solar, is planned and fully contracted pending a decision by the California Public Utilities Commission.
 
        Sempra Generation operates and maintains a fleet of clean, efficient natural gas-fueled power plants serving the U.S. market and is in the process of developing a solar and wind power projects in the Pacific Southwest. 

        Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2008 revenues of nearly $11 billion.  The Sempra Energy companies’ 13,600 employees serve more than 29 million consumers worldwide.

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This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements can be identified by words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” ”could,” “should,” or similar expressions, or discussions of strategies, plans or intentions.  Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, California Department of Water Resources, Federal Energy Regulatory Commission, Federal Reserve Board,  and other regulatory and governmental bodies in the United States, the United Kingdom  and other countries; capital market conditions and inflation, interest and exchange rates; energy and trading markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company.  These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission.  These reports are available through the EDGAR system without charge at the SEC’s Web site, www.sec.gov and on the company’s Web site, at www.sempra.com.


Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and Sempra Commodities  are not the same companies as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and Sempra Commodities are not regulated by the California Public Utilities Commission.

 


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