A renewable energy contract between Pacific Gas and Electric Company (PG&E) and Mt. Poso Cogeneration Company was approved by the California Public Utilities Commission (CPUC).
PG&E will purchase renewable energy from the Mt. Poso Cogeneration facility located in Bakersfield, California. At present, the Mt. Poso Cogeneration is generating power by utilizing petroleum coke, coal and tire-derived fuel. Under the 15-year renewable energy contract that is approved by CPUC, the plant will be converted to operate with agricultural and urban wood waste for fuel to generate electricity. The modified biomass power plant will have a generating capacity of 44 MW. The plant, which is scheduled for completion in 2012, will produce 325 GWh of energy per annum.
Michael R. Peevey, President of CPUC, said that California will benefit with this agreement since it will help the state to reduce its dependence on coal and increases the state’s usage of green renewable energy.
The Renewables Portfolio Standard (RPS) program adopted by California requires that community choice aggregators, energy service providers, and investor-owned utilities that are operating in the state to receive 20% of their retail sales from renewable energy sources by the year 2012.