FOR IMMEDIATE RELEASE

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

PUC ISSUES STATUS REPORT ON RENEWABLE ENERGY PROGRAM;
MOVES CLOSER TOWARD 20 PERCENT GOAL WITH
APPROVAL OF NEW PG&E CONTRACTS

SAN FRANCISCO, October 10, 2006 - The California Public Utilities Commission (PUC) today detailed its aggressive implementation of the Renewables Portfolio Standard (RPS) Program in a report issued to the state Legislature. Separately, last week the Commission approved renewable power contracts that will boost Pacific Gas and Electric Company's (PG&E) clean energy portfolio by 42 megawatts (MW), with potential expansion to 105 MW.

The RPS Program requires investor-owned utilities (IOUs), energy service providers, and community choice aggregators operating in California to obtain 20 percent of their retail sales from renewable energy sources by 2010. As outlined in the state's Energy Action Plan, a main method of meeting the state's energy needs is through renewable sources of power. This will enable California to reduce greenhouse gas emissions and moderate our use of natural gas.

Since 2002, the PUC has approved 57 renewable contracts, making possible the procurement of 3,560 MW of renewable power in California. These contracts, together with the 2005 contracts currently under review, position the three large IOUs on a path to be more than 17 percent renewable in 2010. More contracts are expected from the 2006 renewable energy solicitations, as well as from later solicitations. The Commission's report to the state Legislature is available at http://www.cpuc.ca.gov/static/hottopics/1energy/rps_leg_report_oct_2006_vjb.pdf.

Separately, last week the Commission approved two biomass projects and one geothermal project for PG&E:

· The Liberty biomass project in Bakersfield is expected to deliver between 33 and 35 gigawatt-hours (GWh) annually by the end of 2009.

· The HFI biomass project in La Pine, Oregon is contracted to deliver between 140 and 280 GWh annually by mid-2007.

· The Bottle Rock geothermal plant in Sonoma is expected to deliver between 119 and 384 GWh annually by July 2007.

These three renewable contracts will prevent over 233,000 pounds of carbon dioxide emissions annually, assuming this renewable energy replaces generation from a new natural gas combined cycle plant.

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

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