SAN DIEGO, June 29, 2007 – Sempra Generation, a subsidiary of Sempra Energy (NYSE: SRE), today announced it is entering the renewable-energy-development business, starting with a 250-megawatt (MW) wind-power generation project in Baja California, Mexico.
Sempra Generation has agreed to acquire the development assets associated with the proposed La Rumorosa Wind Power project under a co-development arrangement with San Diego-based Cannon Power Corp.
“Environmental public-policy initiatives and escalating demand for clean, renewable energy are creating new opportunities for power developers,” said Michael W. Allman, president and chief executive officer of Sempra Generation. “Combining Sempra Generation’s experience in developing power projects with leaders in renewable power, such as Cannon Power, is a natural fit.”
Allman said Sempra Generation also is considering other solar investments and renewable-energy-development projects in the Pacific Southwest.
“We are delighted to be teaming with Sempra Generation in the development of a clean, renewable energy resource in the La Rumorosa area,” said Gary Hardke, managing director of Cannon Power. “We consider that region ideal for wind generation and look forward to our role in helping establish its reputation as a significant renewable energy producer.”
The La Rumorosa project would generate power from as many as 125 wind turbines to be installed along the easterly ridge lines of the Sierra Juarez mountains in the Ejido Jacume near the town of La Rumorosa, about 70 miles east of San Diego and across the U.S.-Mexico border. The project could be operational by mid-to-late 2010. Under terms of the proposed purchase agreement, Cannon Power will provide technical assistance and co-develop the project with Sempra Generation.
For its wind and solar projects, Sempra Generation will seek renewable-energy-supply contracts with major utilities throughout the southwestern United States and Mexico. The successful acquisition of long-term power contracts is necessary to ensure the development, construction and operation of such large-scale projects.
Should Sempra Generation proceed with the development of La Rumorosa, the capital investment for the project is estimated at $400 million.
Cannon Power is a San Diego-based developer of wind power projects with more than 26 years experience in developing, constructing and operating wind turbine facilities in the United States and internationally.
Sempra Generation operates and maintains a fleet of power plants serving the Western U.S. market. Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2006 revenues of nearly $12 billion. The Sempra Energy companies’ 14,000 employees serve more than 29 million consumers worldwide.
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Sempra Generation is not the same company as the utilities, SDG&E or SoCalGas, and is not regulated by the California Public Utilities Commission.