FOR IMMEDIATE RELEASE Docket #: Res. E-3946; Res. E-3935; R.04-04-026

Media Contact: Terrie Prosper, 415.703.1366, news@cpuc.ca.gov

PUC PROMOTES RENEWABLE POWER BY APPROVING CONTRACTS AND CALLING FOR MORE FLEXIBILITY IN BIDDING PROCESS

SAN FRANCISCO, July 21, 2005 - The California Public Utilities Commission (PUC), in its ongoing efforts to assist the utilities in meeting renewable power goals, today approved renewable contracts for Pacific Gas and Electric Company and Southern California Edison, and widened the scope of delivery options for renewable power bids.

The Commission approved three renewable contracts for PG&E as part of the Renewable Portfolio Standard (RPS) program, which requires utilities to obtain 20 percent of their power from renewable sources by 2010, according to the state's Energy Action Plan.

The contracts approved for PG&E are:

Generating Facility Type Term Years MW Capacity Location

FPL Montezuma Wind 20 32.4 Solano

Buena Vista Wind 15 28 - 43 Altamont Pass

Pacific Renewable Wind 20 82.5 Lompoc

The Commission's approval of these contracts, which are the first to result from the RPS statute, contributes significantly towards PG&E's renewable procurement goals. In 2004, the year of this RPS solicitation, PG&E's incremental procurement target was 711 Giga-watt hours (GWh). These contracts will contribute an aggregate 490 GWh per year, of which 472 GWh would be incremental.

The Commission today also approved contracts for Edison for re-powering four existing wind power facilities.

The contracts approved for Edison are:

Project Name MW Capacity Location

CTV Power 14 Tehachapi

Windland, Inc. 8 Tehachapi

Karen Windfarm 11.66 San Gorgonio

Coram Energy 3 Tehachapi

The re-powered wind facilities will either completely or partially replace existing turbines with state-of-the-art turbines that will result in increased electricity production of approximately 25 GWh.

Lastly, in order to attain the 20 percent renewable power by 2010 goal outlined in the Energy Action Plan, and maintain or increase it thereafter, the Commission acknowledged that utilities must engage in creative and aggressive procurement - merely waiting for projects to be developed that will deliver directly and only to the utilities' preferred delivery points, using transmission facilities that do not yet exist, is not likely to accomplish the goals of the RPS program. To create more flexibility in the RPS process and allow more developers to come forward with projects, the Commission today required the utilities to change their Request For Offers to be issued in August 2005 to allow bids with delivery at points outside their service territories, but in the California Independent System Operator control area. Widening the scope of delivery options is one step that can be taken without any additional investment in physical infrastructure and without statutory or regulatory changes.

For more information on the PUC, please visit www.cpuc.ca.gov.

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