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PG&E to Acquire Ownership of Colusa Generating Station Colusa Generation Station to Provide Enough Electricity to Power Nearly 500,000 Customers

Release Date: November 15, 2007
Contact: PG&E External Communications (415) 973-5930

SAN FRANCISCO – Pacific Gas and Electric Company today announced it has reached agreement to accelerate the acquisition of the Colusa Generating Station from E&L Westcoast, LLC (E&L Westcoast) to maintain the 2010 target completion date. In addition, PG&E filed an application with the California Public Utilities Commission (CPUC) yesterday for authorization to directly develop and construct the Colusa Generating Station. The CPUC already approved the project, finding that it was cost effective and needed for reliability.

“The Colusa Generating Station is an important component of PG&E’s commitment to ensure a secure and reliable energy supply to support California’s economic growth and well being,” said Randy Livingston, PG&E’s vice president of power generation. “The state-of-the-art 657-MW combined cycle natural gas facility utilizes the latest in fuel-efficient technologies to minimize the environmental impact while ensuring reliable electricity at reasonable costs.”

Recently, Competitive Power Ventures, E&L Westcoast’s project developer, notified PG&E that it planned to terminate its agreement to develop the Colusa project and wanted to explore other workable solutions. As a result of those conversations, PG&E agreed to acquire the site from E&L Westcoast and proposed to the CPUC that PG&E step in and take over development and construction of the Colusa Generating Station. Assuming the CPUC approves PG&E’s application and that permitting and construction schedules are met, the generating facility is expected to come on-line in 2010 as planned.

"CPV is pleased to announce that we have agreed with Pacific Gas and Electric Company to a cooperative solution to a complex market situation which will allow for the completion of a successful development project in Colusa County," as stated by Gary Lambert, President of Competitive Power Ventures.

PG&E has designed a comprehensive energy strategy to meet its customers’ future power needs in ways that are consistent with the company’s commitment to clean energy solutions and environmental leadership. The strategy relies first on an aggressive expansion of customer energy efficiency and demand-side management programs, then looks to secure additional renewable power resources, and seeks to meet the remainder of customers’ energy needs through traditional, but ever more efficient generation sources.

The Colusa project resulted from the utility’s 2004 Request for Offers for new long-term electric generation resources. Under the original agreement, E&L Westcoast agreed to develop the project on a turnkey basis and transfer ownership to the utility upon successful operation.

For more information about Pacific Gas and Electric Company, please visit the company’s web site at www.pge.com

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