Monday, February 18, 2008

PG&E Seeks OK For 175MW Geothermal Pact With Calpine (CPN; PCG)

From Dow Jones via CNN Money:
PG&E Corp.'s (PCG) Pacific Gas & Electric is seeking approval for a 175- megawatt geothermal power-purchasing agreement with Calpine Corp. (CPN).

The San Francisco energy company said with this agreement, 20% of PG&E's contracts for future energy delivery now meet California's renewable energy standard....MORE

From the San Jose Mercury-News:
Geothermal energy gaining steam, but its future is up for debate

...Power has been generated from steam for decades, but the high price of oil and the growing demand for renewable energy in recent years has turned The Geysers into a busy place lately.

A visit to Bottle Rock offers an inside look at this geothermal boom. The plant was approved in 1980 and began producing power in 1985. But by 1990, it had shut down. It reopened late in 2007, a few years after Capuano and a partner found investors, and now generates power directly to Pacific Gas & Electric.

Generating 20 megawatts of power - enough to electrify about 20,000 California homes, Bottle Rock remains a small player at The Geysers. The Northern California Power Agency, a consortium that includes the cities of Palo Alto and Santa Clara, owns two plants that generate 110 megawatts of power.

Calpine is the big dog here. The San Jose energy company fresh out of bankruptcy runs 17 plants and is in the midst of a five-year, $200 million rejuvenation plan to increase its steam-generation...MUCH MORE