PG&E to Purchase Minimum of 500 MW of Solar Energy from Luz II Beginning in 2010

Energy Resource, August 10, 2006

ENERGY RESOURCE-10 August 2006-PG&E to Purchase Minimum of 500 MW of Solar Energy from Luz II Beginning in 2010(C)2006 JeraOne - http://www.jeraone.com

Pacific Gas and Electric Company today said it has signed plans with Luz II LLC to purchase at least 500 MW of solar energy beginning in the spring of 2010.

The energy would be produced through a series of projects incorporating Luz II's proprietary DPT 550 technology, which is a hybrid solar-gas design that meets the requirements of the California Renewables Portfolio Standard Program.

The technology also has the potential to dispatch electricity at any time of the day. Pending regulatory approval, power would begin delivery in 2010. The site for the plants has not been determined.

The original Luz firm was a pioneer of solar energy development. Between 1984 and 1990, it built nine solar electric generating systems (SEGS) in southern California. At one time, Luz was producing most of the solar thermal electricity in the world. Luz II is led by its original management team, including former chief executive officer, Arnold Goldman.

"This new project has the potential to be a tremendous additional resource and to help further solidify our leadership when it comes to providing customers with clean, climate-friendly energy," said Fong Wan, vice president of Energy Procurement. "PG&E already has one of the nation's most climate-friendly supplies of electric power, with carbon emissions that are among the lowest in the utility industry.

"Thirty percent of the power we deliver comes from hydroelectric and eligible renewables, like wind, biomass, and geothermal facilities," added Wan. "More than 50 percent of the power we deliver comes from zero-carbon emission sources. We look forward to expanding that going forward."

PG&E is adding renewable electric power resources to its supply at a planned rate of more than 300 megawatts per year. This year the company has entered into new agreements to purchase 274 megawatts of wind, solar, geothermal and other renewable energy.

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