PG&E; to Buy Cow Manure Gas

Pacific Gas & Electric Co. said Thursday that it would purchase natural gas derived from cow manure at California dairy farms to fuel power plants.

The utility, a subsidiary of PG&E; Corp., will buy the gas from Environmental Power Corp., a renewable energy developer based in Portsmouth, N.H.

The gas will be generated by Environmental Power subsidiary Microgy Inc. at four production plants processing the manure at dairy farms in the Central Valley, said Jeff Dasovich, senior vice president at Microgy.

Financial terms and the length of the deal were not disclosed.

Depending on the timing of regulatory approvals, the gas could be flowing to PG&E; by the end of 2007.

California regulators have directed the state’s investor-owned utilities to make renewable resources 20% of their power supplies by 2010.