May 10, 2007 / 5:32 PM / in 11 years

PG&E utility in deal to buy geothermal power

SAN FRANCISCO, May 10 (Reuters) - California utility Pacific Gas & Electric Co. said on Thursday it will purchase geothermal electricity from a Canadian company developing a power plant at The Geysers Geothermal Field in Northern California.

The utility, a unit of San Francisco-based PG&E Corp (PCG.N), said it contracted for 25.5 megawatts of electricity with a unit of Vancouver-based Western GeoPower Corp. Financial terms were not disclosed.

The plant will deliver electricity beginning in 2010 to supply about 18,000 homes.

PG&E said the electricity will go toward a California requirement that investor-owned utilities make renewable energy at least 20 percent of their supplies by 2010.

The utility currently supplies 13 percent of its energy from renewable sources, it said.

The purchase agreement is subject to approval by the California Public Utilities Commission.

    Independent power producer Calpine Corp. CPNLQ.PK is the principal operator of The Geysers, the world’s largest producer of geothermal electricity.

    The Geysers complex provides enough power to supply up to 60 percent of the electrical needs of all the homes and businesses on the Northern California coast.

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