SDG&E adds geothermal energy from Northern California

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Jennifer Briscoe

Media Contact:
Norma F. Dunn

San Diego Gas & Electric

Calpine Corporation

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         SAN DIEGO, March 31, 2010 – San Diego Gas & Electric (SDG&E) today announced that it has signed a four-year power-purchase agreement with Calpine Energy Services, L.P., a subsidiary of Calpine Corporation (NYSE: CPN), to procure 25 megawatts (MW) of geothermal energy from the Calpine Geysers facility in Northern California. 

        The Geysers facility is a complex of 15 geothermal power plants, drawing steam from more than 330 wells, located in the Mayacamas Mountains, approximately 70 miles north of San Francisco.  The Geysers is the largest geothermal power producing site in the world, with Calpine owning 725 MW of active installed capacity. 

        Under the agreement, which runs through 2014, the geothermal facility will produce enough “green” power for more than 15,000 households and will contribute more than 200 gigawatt-hours per year of renewable energy toward SDG&E’s Renewable Portfolio Standard procurement goal.

        “SDG&E is committed to developing new sources of green energy for our customers and to meeting the state’s aggressive renewable goals,” said Matt Burkhart, vice president of electric & fuel procurement for SDG&E.  “This geothermal agreement will increase SDG&E’s portfolio of clean power resources to approximately 14 percent in 2010.”

        “We are pleased to extend our relationship with SDG&E through this contract,” said Alex Makler, vice president, strategic origination, for Calpine Energy Services.  “This is another example of how we can help our customers meet their needs for clean, renewable power by providing them with reliable base load geothermal generation from our plants at The Geysers.”

        SDG&E’s renewable electric supply has grown to more than 14 percent in 2010 from less than 1 percent in 2001 and will reach the 20-percent state mandate by the end of this year with flexible compliance. 
        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.  Exceptional customer service is a priority of SDG&E as it seeks to enhance the region’s quality of life.  SDG&E is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company based in San Diego.
        About Calpine
        Calpine Corporation is helping meet the needs of an economy that demands more and cleaner sources of electricity.  Founded in 1984, Calpine is a major U.S. power company, currently capable of delivering nearly 25,000 megawatts of clean, cost-effective, reliable and fuel-efficient electricity to customers and communities in 16 states in the United States and Canada.  Calpine owns, leases, and operates low-carbon, natural gas-fired, and renewable geothermal power plants.  Using advanced technologies, Calpine generates electricity in a reliable and environmentally responsible manner for the customers and communities it serves.