SAN DIEGO, March 13, 2007– San Diego Gas & Electric (SDG&E) today announced it has launched a competitive bid process for environmentally sound electricity resources that will be needed to comply with a state law that requires 20 percent of the utility’s energy portfolio to come from renewable sources starting in 2010. 

        “SDG&E is fully committed to investing in renewable resources,” said Terry Farrelly, SDG&E’s vice president for electric and gas procurement.  “Our goal is to meet the state’s requirements on, or ahead of, schedule.”

        Through the bidding process, also known as a “request for offers,” or RFO, SDG&E is seeking energy that comes from solar, wind, geothermal, biomass and any other clean, renewable resource that qualifies under the rules adopted for the state’s Renewable Portfolio Standard program.  The plants that produce the power can be inside or outside the SDG&E service territory.  Bids are due May 30, 2007.

        SDG&E will assess all conforming bids according to the adopted regulatory framework of the California Public Utilities Commission (CPUC) to determine which resources best meet customer needs at the lowest cost. 

        This evaluation process includes active participation by SDG&E’s Procurement Review Group, comprised of CPUC staff, consumer advocates and other non-market participants, as well as an independent evaluator.  These entities are involved at all stages of the RFO process, including the preparation of the RFO, bid evaluation and determination of the final “short list” of bidders.  Once the evaluation process is completed, all proposed contracts are subject to CPUC review and approval.

        More information about this latest RFO for renewable energy is available at http://www.sdge.com/renewablerfo2007

        The current renewable-energy RFO is separate from the RFO SDG&E issued last week seeking a minimum of 700 megawatts (MW) of energy through a combination of demand-response (conservation) and generation projects.   Last week’s RFO is needed to replace energy that will be lost when several power contracts with the California Department of Water Resources expire over the next few years.

        A megawatt is enough energy to power about 650 homes.

        The energy provided through these ongoing RFOs is needed in addition to the capacity provided by the planned Sunrise Powerlink transmission line.  The Sunrise Powerlink, which is expected to bring as much as 1,000 MW of clean, renewable energy to San Diego from the Imperial Valley, is vital to SDG&E’s ability to meet the state’s renewable resources mandate in the most cost-effective manner. 

        San Diego Gas & Electric is a full-service energy utility that serves 3.4 million consumers through 1.3 million electric meters and more than 825,000 natural gas meters. Its service area spans 4,100 square miles and includes 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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