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California approves solar thermal contract

Wednesday, 04 August 2010 16:26

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The California Public Utilities Commission (CPUC) today approved two renewable energy contracts for Pacific Gas and Electric Company (PG&E), furthering the state's progress towards its renewable energy goals. PG&E received approval for a 25-year power purchase agreement with Rice Solar Energy, LLC, a subsidiary of Solar Reserve, LLC. Under the agreement, PG&E will procure an average of 448 GWh of renewable energy from the 150 megawatt (MW) solar thermal facility, which is being developed in Rice, Calif. Commercial operation is expected in October 2013.

The CPUC also approved a two-year extension to an existing qualifying facility contract between PG&E and Air Products Manufacturing Corporation, a successor-in-interest to Stockton CoGen Company. The contract facilitates the conversion of the Stockton Cogeneration plant, which currently generates electricity from petroleum coke and tire-derived fuel, to a facility partially powered with Renewables Portfolio Standard (RPS)-eligible biomass. Pursuant to the agreement, the 45 MW Stockton CoGen facility is expected to dedicate between 20-25 percent of its capacity to biomass fuel while the parties negotiate a long-term agreement for conversion of up to 50 percent biomass.

The CPUC's RPS program requires investor-owned utilities, energy service providers, and community choice aggregators operating in California to obtain 20 percent of their retail sales from renewable energy sources by 2010. On November 17, 2008, Governor Schwarzenegger signed an Executive Order (S-14-08) that established a 33 percent by 2020 RPS goal. For the latest information about the utilities' progress towards the state's RPS goal, access the CPUC's Quarterly Report to the Legislature: www.cpuc.ca.gov/PUC/energy/Renewables/index.htm.

Source: CPUC