For Immediate Release: July 9, 1998
Media Contact: Claudia Chandler -- 916 654-4989



Financial Incentives Auction a Success
for California Energy Technologies



Sacramento - The renewables energy industry is getting the help it needs to compete in the free market, according to the California Energy Commission.

After nearly a decade of virtually no growth in California's renewable power development, the Energy Commission's financial incentives auction allocated $162 million to 55 new wind, geothermal, landfill gas, biomass, digester gas and small hydroelectric projects.

According to Commissioner Michal (correct spelling) Moore, presiding member of the Energy Commission's Renewables Program Committee, the bid process operated smoothly and expeditiously. "We have proven that, with the right incentives, the Comission can move quickly to develop a new market for economic renewable resources in California's changing energy dynamics," he stated.

The auction received a total of 56 bids representing nearly 600 megawatts of "new" renewable energy resources. Facilities eligible for funding were required to use a renewable resource technology, be located in California, and be constructed on or after September 26, 1996. Companies whose bids were accepted will receive production incentive payments for electricity generated and sold (not self-generated electricity used on-site) during the first five applicable years of operation after the project is completed.

All the bids received amounted to a total of $182 million in incentive payments, $20 million more than the amount allocated in the renewable energy program for new generation. Bids were submitted in the form of a simple cents per kilowatt hour for electricity production, not to exceed 1.5 cents per kilowatt hour.

"The bids came in with requested incentives well below the level that critics predicted would fail to stimulate development of a new market," Moore explained. "This is exciting news for California's energy system and for renewable energy developers worldwide. These bidders believe that they can actually produce these renewable projects competitively based on today's prices."

The renewable resource technologies determined eligible to receive funding at an average incentive of 1.2 cents per kilowatt hour include: approximately 300 megawatts of wind; 157 megawatts of geothermal; 70 megawatts of landfill gas; 12 megawatts of biomass; 1 megawatt of digester gas; and 1 megawatt of small hydro.

"This is an important milestone in our state's electricity restructuring," declared Moore. "Development of renewable resources will continue in California and once again be a shining beacon for the rest of the nation."

Expected dates that the winning bidders will be producing electricity include three projects in 1998, 22 projects in 1999, 17 projects in 2000, and 13 projects in 2001.

The $162 million for "new" renewable energy projects is 30 percent of the overall $540 million fund established by the Legislature for the support of renewable electricity generation facilities in Assembly Bill 1890, the landmark electricity deregulation legislation passed in 1996. The funds are being collected from existing investor-owned utility ratepayers from 1998 to 2002 to support and build a sustainable renewable energy industry. Funding is also available for existing and emerging renewable electricity generation technologies.


A list of the 55 projects conditionally approved as auction winners are listed in the table below.


Name of Bidder No. of Bids Conditional Funding Award Over 5 Yrs. $
Agrilectric Power, Inc. 1 3,939,938
Browning-Ferris Gas Services, Inc. 3 6,289,669
California Energy General Corporation 1 28,239,438
Calpine Siskiyou Geothermal Partners, L.P. 1 20,792,000
CalWind Resources, Inc. 1 1,852,200
CE Turbo LLC 1 5,751,816
City and County of San Francisco 2 1,643,794
City of Sunnyvale Public Works Department 1 210,448
County of Santa Cruz, Department of Public Works 1 767,600
El Dorado County Environmental Management Dept. 1 450,049
Energy Developments, Inc. 3 4,491,830
Enron Wind Development Corp. 4 16,826,395
Mark Tech Corp./FORAS Energy, Inc. 1 5,470,000
MM Lopez Energy LLC 1 2,936,011
MM Miramar Energy LLC d/b/a MM San Diego LLC 1 977,616
MM Prima Deshecha Energy LLC 1 2,548,124
MM Tajiguas Energy LLC 1 911,708
MM Tulare Energy LLC 1 911,708
MM West Covina LLC 1 2,919,752
MM Woodville Energy LLC 1 287,908
MM Yolo Power LLC 1 1,031,928
Painted Hills Wind Developers 1 3,187,107
Riverside County Waste Resources Management District 6 3,983,846
Salton Sea Power L.L.C. 1 25,548,365
Venture Pacific, Inc. 15 8,515,111
Wheelabrator Shasta Energy Co, Inc. 1 2,154,600
Whitewater Energy Corporation 1 4,977,039
Windland, Inc. 1 4,384,000
Totals: 55 $162,000,000


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A detailed list of the winning projects including funding amount, contact information, energy source, capacity, online date and project location can be downloaded below.

The list document is available as a downloadable Adobe Acrobat Portable Document Format (PDF) file. In order to download, navigate and print the document you will need the free Acrobat Reader software install in and configured for your computer. The software is available from Adobe Systems Incorporated's Internet Site.





Additional information on the New Technologies Account Auction will be available on the California Energy Commission's Web Site at:

www.energy.ca.gov/renewables/new_renewables.html





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