SAN FRANCISCO – Pacific Gas and Electric Company today announced it has issued two Requests for Offers (RFOs) to ensure sufficient, reliable power to meet the long-term electricity needs of its customers. One RFO is for long-term power contracts and the other is for utility-owned generation facilities. Through these RFOs, the company seeks approximately 2,200 megawatts of power between 2008 and 2010 – approximately 1,200 megawatts by 2008 and an additional 1,000 megawatts by 2010.

The RFOs are part of PG&E’s overall strategy, which is consistent with the priorities for energy resources established in the state’s multi-agency Energy Action Plan – expanding conservation and other demand side management programs and through additions to the renewable generation portfolio. PG&E expects to use the two RFOs to meet the remainder of its power needs.

In its long-term resource plan, filed with the California Public Utilities Commission (CPUC) in July 2004, PG&E proposed meeting long-term power needs through a balanced portfolio of 50 percent utility-owned generation facilities and 50 percent wholesale generator contracts.

“We believe a supply that balances utility-owned power plants and long-term contracts from power generators is the best way to meet our customers’ growing electricity needs at a reasonable cost,” said Fong Wan, Pacific Gas and Electric Company’s vice president of power contracts and electric resource development. “We recognize the importance of having a diverse resource mix. That is why our proposal includes more environmentally friendly, renewable resources and energy efficiency programs along with power from traditional sources.”

The RFO for utility-owned generation facilities seeks bids from power plant owners/developers to provide newly built, dispatchable “turnkey” generation facilities. PG&E will consider all generation fuel types and technologies that are 25 megawatts or larger. (See RFO for the complete list of criteria and eligibility requirements.)

The RFO for long-term contracts seeks bids from power plant owners/developers to enter into agreements to provide peaking or shaping power. The company will consider offers that are 25 megawatts or greater. PG&E will also consider offers from Qualifying Facilities that can produce 1 megawatt or more of power. (See RFO for the complete list of criteria and eligibility requirements.)

The expected schedule for both RFOs is:

• November 2, 2004 – Issue the RFOs
• January 14, 2005 – Initial offers due
• March 2005 – PG&E selects shortlist
• April 2005 – Final offers due from shortlist participants
• June 2005 – PG&E selects winning participants, executes contracts, and submits contracts for CPUC approval.

Currently, the company is going through a process to secure additional renewable resources through long-term contracts and power for the intermediate term (up to five-years). The CPUC is expected to issue a final decision on the long-term resource plan by the end of the year.

Along with PG&E’s renewable generation solicitation, these RFOs mark the company’s first solicitations for long-term power contracts and new power plants since emerging from Chapter 11. For more information on the RFOs for long-term resources, please visit www.pge.com/b2b/purchasing/.