BIG UTILITY IN BIG WIND BUY

Scale.

The amount of energy the world consumes on a daily basis is really mind-boggling.

Example: California Governor Arnold Schwartzenegger’s unprecedentedly ambitious “million solar roofs” initiative was widely hailed as game changing. It is likely to produce about the same number of megawatts as 5 wind installations the size of the one announced August 18 by SCE or 5 solar power plant projects the size of the one announced August 14 by PG&E. (See BIG CALIF SOLAR POWER PLANT DEAL – IF)

It is about one-fourth of one ten-thousandth of the energy consumed daily by the world.

Every megawatt of power that does not come from New Energy comes from fossil fuels that generate greenhouse gas emissions that will stay in the atmosphere for the next 1 to 3 thousand years or from nuclear power that creates waste that will remain a radioactive threat for the next half million years.

The point is NOT: The world is doomed!

The point is: Build New Energy!

The point is that every government policy or personal sentiment or utility’s gesture in favor of New Energy is vital.

Case in point: With this contract, SCE now has contracts in place to meet the California Renewable Electricity Standard (RES) requirement that it obtain 20% of its power from New Energy sources by 2010.

Stuart Hemphill, vice president of Renewable and Alternative Power, SCE: “This contract is a crown jewel in our renewable energy portfolio…The project is attractive to SCE because of its size, near-term delivery and its competitive price.”

If the U.S. had a national Renewable Electricity Standard (RES), EVERY utility executive would be thinking about such jewels.

Waylaying the worst impacts of global climate change will require countless treasure chests of such jewels.

Fortunately, the world is amply blessed to a scale almost beyond numbers with the endlessly renewable riches of wind and waves and sun.

1 terawatt (TW)=1000 gigawatts (GW). 1 GW=1000 megawatts. This installation=900 megawatts. Do the math. (click to enlarge)

SCE to buy 909 MW of wind power from Oregon
Scott DiSavino (w/Walter Bagley), August 18, 2008 (Reuters)
and
Southern California Edison Signs Contract for More Than 900 Megawatts of Wind Energy
August 18, 2008 (Southern California Edison)

WHO
Edison International's Southern California Edison (SCE); DCE-affiliate Caithness Energy

WHAT
SCE signed a power purchase agreement with DCE for up to 2 billion kilowatt-hours per year (900 megawatts) of wind-generated electricity from the Caithness Shepherd's Flat installation.

SCE was the 3rd biggest utility-owner of wind in 2007. (click to enlarge)

WHEN
- The Caithness Shepherd's Flat installation is expected to come on line between 2011 and 2012.
- 2007: SCE got 16% of its power from New Energy sources.

WHERE
- The Caithness Shepherd's Flat installation will be in Gilliam and Morrow counties of north-central Oregon.
- The power purchase will provide New Energy megawatts for SCE’s service area of southern California.
- California utilities are required by the state’s Renewable Electricity Standard (RES) to obtain 20% of its power supply from New Energy by 2010.
- The new deal bring’s SCE New Energy-sourced power total to over 18% of its total supply.
- Edison Internatinal/SCE is based in Rosemead, California.

WHY
- The Caithness Shepherd's Flat installation will be 303 turbines across a 30-square-mile area and a capacity of 909 megawatts.
- The installation will require no new transmission.
- SCE obtains more of its power from New Energy sources than any other U.S. utility.

SCE was named the number 1 utility-owner of solar. (click to enlarge)

QUOTES
Les Gelber, president/chief operating officer, Caithness Energy: “Caithness has been successfully partnering with Southern California Edison since the 1980s to bring renewable energy to the region…The Shepherd’s Flat project is particularly exciting and will bring a significant new renewable energy supply to the western United States.”