PSEG Signs 10-Year Contract to Supply Electricity to State
A California unit of Public Service Enterprise Group agreed to sell up to 430 megawatts of electricity to the state’s Department of Water Resources under a 10-year contract, the company said Monday.
GWF Energy said power deliveries are expected to begin in September when its 90-megawatt “peaker” plant goes online in Hanford in California’s Central Valley.
The company owns or operates seven small power units in the state and plans to build two more in the Central Valley. A peaker unit typically generates less than 300 megawatts of electricity--enough for about 300,000 homes--and runs during the hours of the highest demand for energy.
The value of the contract with the water agency was not disclosed.
Gov. Gray Davis ordered the agency to step in as California’s principal electricity buyer in January after PG&E; Corp.’s Pacific Gas & Electric unit and Edison International’s Southern California Edison subsidiary amassed about $14 billion in power purchase costs that they could not pass to customers under the state’s flawed deregulation law.
PSEG shares rose 29 cents to close at $51.34 on the New York Stock Exchange.
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