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PG&E Buys Geothermal Power From Calpine Geysers Facility



SAN FRANCISCO -(Dow Jones)- PG&E Corp.'s (PCG) utility unit said Friday it signed a contract with Calpine Corp. (CPN) to buy 425 megawatts of geothermal power from Calpine's Geysers facility in northern California.

The new contract, subject to approval by state regulators, will replace two existing contracts between Pacific Gas & Electric Co. and Calpine for 375 megawatts of geothermal power from the facility that expire in 2012 and 2014.

PG&E and other California utilities are required to use renewable sources for a third of the power they sell by 2020 under rules being developed as part of California's 2006 plan to combat climate change. Existing rules require the state's utilities to use renewables for a fifth of their retail power by the end next year.

-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468; cassandra.sweet@ dowjones.com

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  (END) Dow Jones Newswires
  10-30-091216ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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