Edison inks massive wind-power deal
By LESLIE BERKMAN
The Press-Enterprise
Southern California Edison said Thursday it has signed the nation's largest-ever wind-power procurement contract that, if approved by state regulators, will provide customers with 1,500 megawatts of power, enough to serve up to one million homes.
The utility said the proposed contract with Alta Windpower Development, a subsidiary of Allco Financial Group Inc. of Australia, calls for development of more than 50 square miles of wind parks in California's Tehachapi region.
That will be three times larger than any other U.S. wind farm.
Delivery of the first 250 megawatts of wind power to Southern California Edison would begin in 2010, with the remainder to come on line in increments by 2015.
Stuart Hemphill, Southern California Edison's director of renewable and alternative power, said construction of transmission lines to carry the wind-generated power to Edison customers will cost $1.8 billion and is vital to success of the project.
Southern California Edison spokesman Gil Alexander said for competitive reasons, the utility will not make public the price it will pay for the wind power, but the PUC will determine whether the cost makes sense for ratepayers.
Hemphill said the transmission project also must be approved by the Independent System Operator, the agency responsible for the state's transmission grid.
The proposed wind project optimally could produce electricity equivalent to what is generated by two typical natural gas-fired power plants.
But because wind fluctuates it is expected to produce between 30 percent and 35 percent of its potential each year.
"You take wind power when it is available to you. It changes hour-by-hour and goes up and down throughout the year," Hemphill said.
Still, Hemphill said having a wind-power alternative will help Edison offset the volatile price of natural gas, which fuels plants that supply half the power produced in Southern California.
Oak Creek Energy Systems of Mojave is a partner with Allco in development, construction and operation of the wind project.
The Allco project will not be ready in time to help Edison achieve its state mandate to have 20 percent of electricity generated by renewable sources by 2010, Hemphill said.
He said the utility is soliciting a wide range of other renewable energy projects that can be completed more quickly.
Edison said it currently serves up to 17 percent of its customers' needs with renewable energy.
PUC President Michael R. Peevey applauded Edison's announcement. "This contract will help California move closer to its goal of generating 20 percent or more of our electricity with clean, renewable energy," he said in a statement.
Reach Leslie Berkman at 951-893-2111 or lberkman@PE.com