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SDG&E; Signs Contracts to Buy Electricity

Times Staff Writer

San Diego Gas & Electric on Wednesday signed contracts with two out-of-state utilities that will add 175 megawatts of “low-cost” electricity to the SDG&E; system over the next 25 years.

The contracts are part of SDG&E;'s ongoing replacement of more than 600 megawatts of electricity now being purchased under contracts that will expire in 1988 and 1989.

SDG&E; will buy 75 megawatts of electricity from Portland General Electric Co. and 100 megawatts from the Public Service Co. of New Mexico.

“These are two of the higher quality arrangements that we felt could be consummated,” said Mike Niggli, SDG&E;'s manager of fuel and power contracts.

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The purchased electricity, officials said, will cut $40 million from consumer electric bills during the life of the contracts. That rate reduction is based on the cost of building new gas or oil-fired turbines to generate needed electricity.

Niggli said the remaining contracts due to expire in 1988 and 1989 will be replaced by similar purchase agreements and through the expanded use of power generated locally by generation facilities that are not owned by SDG&E.;

The utility, which now buys 80 megawatts of electricity from those facilities, will boost its purchases to more than 300 megawatts by 1989.


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