The contracts represent a potential generating capacity of 1,351MW and bring the results of Southern California Edison’s (SCE) new generation initiative to a total of 2,556MW. Contracts executed are subject to California Public Utilities Commission (CPUC) approval.
The new contracts are the outcome of a plan recommended by SCE in response to state forecasts of inadequate new power plant construction. The utility proposed offering 10-year power purchase contracts to new generation developers with the benefits and costs of the new resources allocated to all customers within SCE’s service territory who would benefit from the enhanced reliability.
SCE subsequently launched an open, competitive solicitation that has produced a total of seven agreements with five different project developers who have agreed to construct new southern California generating resources.
Many of the projects will reportedly produce electricity more efficiently and with far fewer pollutants than older power plants. In addition, several of the projects will use new turbine technologies capable of adjusting more rapidly to changes in power supplies and demand.
Alan Fohrer, SCE chairman and CEO, said: We thank all who participated in this important process that will significantly increase the reliability of our region’s electricity system in coming years.
