Sempra plans wind power project in Baja California

SAN FRANCISCO, June 29 (Reuters) - Sempra Energy (SRE.N) said on Friday its Sempra Generation subsidiary plans its first move into renewable power generation, development of a wind power project in Baja California.

Sempra Generation agreed to acquire development assets in the proposed La Rumorosa Wind Power project under a co-development accord with closely held Cannon Power Corp. of San Diego.

The La Rumorosa area, about 70 miles (112 km) east of San Diego and south of the U.S.-Mexico border, has a potential generation capacity of 1,000 megawatts, Michael Allman, president and chief executive of Sempra Generation, said.

There is transmission in the area, including the Southwest line across the border in the U.S., and some more lines would be needed.

The 250-megawatt wind development is estimated at $400 million, and Allman said a final investment decision could come in 2008 with the project on line in 2010.

It would generate power from as many as 125 wind turbines to be installed in the Sierra Juarez mountains near the town of La Rumorosa.

Sempra Generation and Cannon Power will work together to explore more growth opportunities, Allman said.

The company also is considering other solar energy investments and renewable power projects in the Southwest.

For wind and solar energy, Sempra Generation will seek renewable power supply contracts with utilities in the U.S. Southwest and Mexico.

Sempra Generation operates power plants serving Western U.S. electricity markets.