PG&E solicits renewable energy suppliers

14 March 2007 -- Pacific Gas and Electric Co. (PG&E) announced that it has issued a Request for Offers (RFO) to solicit renewable energy supply on behalf of its five million electric customers. This marks the company's fifth renewable energy solicitation pursuant to the State of California Renewable Portfolio Standard (RPS) program.

PG&E intends to sign contracts equaling one to two percent of its demand in order to achieve a 20 percent renewable power goal by 2010.

The utility currently supplies 12 percent of its energy from qualifying renewable sources under California's Renewable Portfolio Standard (RPS) -- one of the highest volumes of any utility in the United States. Renewables sources include solar, wind, biomass, geothermal, and small hydroelectric.

Similar to the 2006 solicitation, the renewable energy projects may be proposed in the form of power purchase agreements from generation sources owned and operated by others, or new generation facilities constructed for utility ownership, or sites suitable for development of renewable energy projects. PG&E will accept deliveries anywhere in California, thereby potentially avoiding uneconomic transmission cost.

A bidders conference is scheduled for April 3 and offers are due on May 31. PG&E intends to enter into contracts and seek CPUC approval during the third and fourth quarters of 2007. Parties interested in the RFO may obtain solicitation documents by visiting www.pge.com/rfo.

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