SAN DIEGO, June 12, 2007 – San Diego Gas & Electric (SDG&E) today announced it has signed a supply contract with Envirepel Energy, Inc. for renewable, biomass energy that will be online by October 2007.   SDG&E also reported that it has received nearly 5,000 megawatts (MW) of renewable-energy-supply proposals in response to the utility’s most recent renewable Request for Offers (RFO) solicitation that ended May 30, 2007.

        Every year since 2002, SDG&E has solicited supply bids for renewable power to meet California’s mandate of having 20 percent of its energy portfolio come from clean resources such as wind, solar, biomass and geothermal by 2010.  Envirepel’s agreement is the result of an earlier competitive solicitation.  Biomass power results from burning plant-based materials such as wood. 

        “We are excited about the new renewable energy contract with Envirepel and with the overwhelming response we received for supplying green energy to our grid,” said Debra L. Reed, president and chief executive officer for SDG&E.  “Developers are signaling their willingness to build these renewable projects.  We are committed to providing the transmission pathway necessary to ensure renewable energy from any of the projects developed reaches San Diego.”

        The nearly 5,000 megawatts proposed in the most recent RFO represents a mixture of renewable energy, including about 2000 MW of wind, 2,700 MW of solar, and 300 MW of  geothermal, biomass and landfill gas.  Several of the proposals submitted would require the addition of new transmission infrastructure to deliver energy to San Diego customers.

        Today, SDG&E is more than half-way toward meeting its 2010 goal with approximately 12 percent of its future energy supply under contract to be delivered from renewable sources. 

        SDG&E’s contract with Envirepel will now be submitted to the CPUC for review and final approval.  SDG&E’s final selection of the renewable-energy bids will be based on least-cost, best-fit procurement criteria and will be reviewed by the Procurement Review Group, comprised of California Public Utilities Commission (CPUC) staff, consumer advocates and other non-market participants, and an independent evaluator prior to being submitted to the CPUC for final approval.   

        SDG&E currently serves 3.4 million consumers through 1.4 million electric meters and more than 830,000 natural gas meters.  The utility’s service area spans 4,100 square miles and serves customers in more than 125 communities from Southern Orange County to the Mexican border.  SDG&E is a regulated subsidiary of Sempra Energy (NYSE:SRE).  Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company.  To learn more, go to www.sdge.com.


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