Portland General Electric (PGE) announced December 9 a 30-year agreement with PPM Energy to purchase 75 MW of wind to serve PGE customers, starting in December 2005, according to company releases. The Cities of Alameda and Palo Alto, in California, each approved a few days earlier a nearly 24-year contract, for 10 MW of electricity and 20 MW, respectively. The three purchases total over 100 MW in sales for PPM Energy, ScottishPowers (NYSE:SPI) competitive U.S. energy business.
"The wind power purchased by PGE will be the entire output of PPM Energys Klondike II Expansion Wind Project, located near Wasco, Ore. We are delighted to work with PGE to bring online this great wind resource that is well situated to serve PGEs requirements," said PPM CEO Terry Hudgens. "With no fuel costs, wind power provides a hedge against fuel price volatility as well as an environmentally responsible energy choice."
"We are pleased to be delivering more renewable energy to our customers at an affordable price and we trust PPM Energys record as a reliable and responsible power supplier," said Jim Lobdell, PGEs vice president of power operations and resource strategy. "Increasing supply diversity and adding more renewable energy to our supply portfolio were two of the goals of our Integrated Resource Plan, and this moves us closer to meeting these goals."
Lobdell added that the agreement is particularly attractive because PPM Energy included "firming, shaping and delivery" services for the renewable wind energy. These features will smooth out variations in wind power output and ensure that pre-determined blocks of power are provided to PGE.
The wind power for Alameda and Palo Alto will come from the High Winds Energy Center in Solano County. With a capacity of 162 MW, High Winds is the largest single wind generating facility in California.
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