SDG&E seeks to acquire more renewable energy

Jul 21, 2006

Media Contact:
Eddie Van Herik

San Diego Gas & Electric

(877) 866-2066


        SAN DIEGO, July 21, 2006 – San Diego Gas & Electric (SDG&E) has asked electricity suppliers for offers to provide more renewable energy to meet its customers’ needs.

        SDG&E has been aggressively contracting for resources such as wind, solar, biomass and geothermal, so that the utility can supply 20 percent of its customers’ power from green resources by 2010.  Contracts for renewable energy currently comprise about 13 percent of SDG&E’s power resources.

        Terry Farrelly, vice president of electric and gas procurement for SDG&E, said that SDG&E is continuing its efforts to procure clean energy to enhance the environment and diversify its supply mix, as well as respond to customer demand.

        The Request for Offers (RFO), issued earlier this week, is open to all types of renewable resources.  SDG&E said offers for power generated within the utility’s service territory must be at least 1 megawatt, and bids for power outside that area must be at least 5 megawatts.  The suppliers can begin delivery in 2007, 2008, 2009 or 2010.

        A megawatt is enough energy to power about 650 homes.

        Under the RFO, SDG&E says it will review proposals to buy power from a new or existing facility; buy under contract and then purchase the power plant at the end of five years; or own the energy center outright, once it is built.

        SDG&E evaluates the offers to determine which best meet customer needs at the lowest cost before negotiating tentative contracts. All renewable contracts must be approved by the California Public Utilities Commission.

        Farrelly said that additional transmission facilities, like the proposed Sunrise Powerlink, will be needed to bring in renewable energy from outside the San Diego area.

        San Diego Gas & Electric is a full-service energy utility that currently serves 3.4 million consumers through 1.3 million electric meters and more than 825,000 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