SCE Issues First Contract in Its Effort to Attract New Generation to Southern California

November 16, 2006

November 16, 2006

ROSEMEAD, Calif., Nov. 16, 2006—Southern California Edison (SCE) yesterday submitted to the California Public Utilities Commission (CPUC) for review and approval the first long-term power contract signed in its effort to attract investment by independent power producers in new plants to serve Southern California. 

The initial winning bidder in SCE’s competitive solicitation targeting new generating projects that could come online by Aug. 1, 2007, is Long Beach Generation, LLC, a subsidiary of NRG Energy Inc. (NYSE: NRG).  Long Beach Generation received a 10-year power-purchase agreement to provide 260 megawatts of new generating capacity to serve all customers on SCE’s grid. 

SCE added a special summer 2007 track to its solicitation in response to a CPUC assigned commissioner ruling on near-term reliability needs.  NRG’s “repowered” gas-fired plant was bid into this special track.  The new facility is expected to be online at NRG’s Long Beach Generating Station by Aug. 1, 2007, in time to help support the summer ’07 peak.  Retired in January 2005, the Long Beach plant will be refitted with the latest emissions-control technology to enable it to return to service.

SCE’s new generation initiative, begun in 2005, is designed to address Southern California’s growing need for additional generating capacity.  The utility has issued three requests for offers (RFO) of new or repowered generating capacity.  One track was for projects that could be online by Aug. 1, 2007, another was for those that could be available Aug. 1, 2010, and a third for new facilities that could be operational by Aug. 1, 2013.

“We have been concerned for some time about demand outstripping the development of new generating resources in our region,” said Pedro Pizarro, SCE senior vice president of power procurement.  “With the CPUC’s support, we have offered long-term contracts to independent developers who would help meet this need.  We are pleased to reach this first agreement with NRG.”

The CPUC authorized SCE on July 20, 2006, to sign contracts that benefit all customers served on its power delivery system.  As with the NRG agreement, all contracts signed under SCE’s three RFOs will be submitted to the CPUC for review and approval under the commission’s cost-allocation provision. 

RFO documents are available at www.sce.com/EnergyProcurement.

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An Edison International (NYSE:EIX) company, Southern California Edison is one of the nation’s largest electric utilities, serving a population of more than 13 million via 4.7 million customer accounts in a 50,000-square-mile service area within central, coastal and Southern California.