Plant Purchase Agreement

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Plant Purchase Agreement Powered By Docstoc
					                                                               



FOR IMMEDIATE RELEASE                                   CONTACT: Riley Jones
October 16, 2009                                                 559-583-2078


            GWF Announces Plans for Environmentally Beneficial
                    Conversion of Tracy Power Plant
             Modern combined cycle plant promises reliable, flexible,
                      efficient electricity for years to come

PITTSBURG, California — GWF Energy LLC announces today that as part of a
ten-year power purchase agreement with Pacific Gas and Electric Company
(PG&E) for about 300 megawatts (MW) of power, it will convert its existing Tracy
Peaker Plant — located near Tracy, California — into a more efficient and
environmentally responsible combined cycle plant.

       “Weʼre pleased that our ʻre-poweringʼ project will help California meet its
energy and environmental objectives for the next decade and beyond,” said
Duane Nelsen, President and Chief Executive Officer of GWF Energy. “Once
complete, the converted Tracy Combined Cycle Power Plant (TCCPP) will
provide environmentally clean, efficient, and flexible capacity that can help back
up Californiaʼs planned expansion of renewable resources, such as wind and
solar, which provide intermittent power. Itʼs a win-win-win.”

         The ten-year agreement provides PG&E with the entire output of the
facility. PG&E previously purchased the peaker plantʼs output indirectly through a
contract with the California Department of Water Resources. The repowering will
add an incremental 145 MW of output to the facility. The agreement is subject to
approval by the California Public Utilities Commission.

      “Electricity isnʼt the only benefit of upgrading our Tracy plant,” explains
Nelsen. “The TCCPP will also reduce greenhouse gas emission rates by 31%,

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reduce water use by over 95% through use of dry cooling technology, create
more than 400 union jobs and contribute $3.5 million to the local economy during
construction. When operational, the project will create about 20 full-time jobs and
provide approximately $4 million in annual property tax revenue.”

        In addition to the air quality benefits that are associated with the state of
the art emissions control systems that will be utilized, GWF and the San Joaquin
Valley Air Pollution Control District have entered into an Air Quality Mitigation
Agreement that will specifically benefit the greater Tracy community.

      The new TCCPP facility is currently undergoing review by the California
Energy Commission with completion expected by March 2010. The conversion
process is expected to begin in August of 2010, with commercial operations
beginning mid-year 2012.

       As an enhancement to the TCCPP agreement, and upon approval by the
CPUC, GWF also agreed to shut down the Tracy Peaker Plant one year earlier
than planned and replace its output with GWF units in Hanford and Lemoore,
which are 13% more efficient and have a 13% lower CO2 emission rate. These
units also provide PG&E greater services and flexibility than the Tracy Peaker
Plant — at the same price PG&E and its customers would have paid for Tracy —
allowing PG&E to respond quickly to changes in customer demand.

       Since 1989, GWF and its affiliates have constructed, owned and/or
operated nine power plants/cogeneration facilities in California with a combined
generation capacity of approximately 500 megawatts (including the Tracy Peaker
Plant, which was originally approved and licensed by the CEC in 2002) to help
meet Californiaʼs energy needs for the past 20 years.

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