DOW JONES NEWSWIRES
PG&E Corp. (PCG) agreed to acquire solar energy from two
California projects, one by FPL Group Inc. (FPL), and PG&E
looks to continue building its power sources.
Utilities are increasingly tapping alternative-energy sources of
power as such efforts have become cheaper and as uncertainty
continues about the potential of federal taxes on carbon use and
carbon-dioxide emissions.
FPL's NextEra is the nation's largest producer of wind power and
has contracted to sell 250 megawatts of power from a proposed
project in southern California to Pacific Gas & Electric. The
NextEra project is slated to become operational in two stages ,in
2013 and 2014, respectively, and deliver about 560-gigawatt hours
of energy annually. That is the annual consumption of more than
80,000 homes.
PG&E also intends to obtain 250 megawatts of power from a
proposed solar project by Spain's Abengoa SA (ABG.MC). That
facility, intended to general more than 600 gigawatt-hours
annually, is set to be fully operational by late 2013.
Both projects will use proven solar-thermal technology to
generate renewable energy for PG&E's electric customers. Curved
mirrors in the shape of troughs will focus solar energy onto
fluid-filled tubes extending the length of each trough. The heated
fluid will then be used to create steam for generating
electricity.
PG&E has some 15 million customers in central and northern
California. Its shares were recently up 14 cents at $41.83 while
FPL's shares rose 14 cents to $52.77.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com