CalEnergy, LLC and City of Riverside Execute One of the Largest Geothermal Power Purchase Agreements in North America
Powering More Homes and Businesses with Renewable Energy
For more information, contact:
Abby Bottenfield, Media Relations Representative, MidAmerican Renewables, at 515-281-2621
Stacey Hatcher, Senior Corporate Relations Advisor, TransAlta Corporation, at 855-255-9184
IMPERIAL VALLEY, Calif– (June 18, 2013) – Today, CalEnergy, LLC, a newly formed subsidiary of MidAmerican Energy Holdings Company and TransAlta Corporation (TSX: TA; NYSE: TAC), executed an agreement that will provide Riverside, Calif., residents and businesses with renewable geothermal energy from 2016 through 2039. The agreement is one of the largest single purchases of geothermal energy in North America (86 megawatts), which is more than 25 percent of the total generation CalEnergy, LLC has available for recontracting.
“We are delighted that this power purchase agreement with the city of Riverside, coupled with new capital improvement plans of more than $1 billion over time, will sustain these facilities for another 30 years,” said Bill Fehrman, president of MidAmerican Renewables, whose parent company is MidAmerican Energy Holdings Company. MidAmerican Renewables oversees MidAmerican Geothermal, which is based in Imperial Valley, Calif., and owns the 10 geothermal facilities with TransAlta.
“We are pleased to be able to expand on our existing business with the city of Riverside, providing them additional reliable, environmentally responsible power far into the future and to raise the bar regarding the quality of our product with our new portfolio contract structure for geothermal marketing,” said Paul Taylor, president of TransAlta USA.
Rather than contracting power from individual facilities, the facilities are marketed together as a group providing a more diversified supply and additional flexibility regarding volume and timing to meet customer’s renewable energy supply needs. Customers also have the ability to secure contracts in increments of as low as 5 megawatts.
“This significant contract with the city of Riverside, providing more than 20 percent of its total energy needs, speaks volumes to the advantages of base load geothermal generation,” said Steve Larsen, president of MidAmerican Geothermal. “In addition, the Salton Sea Known Geothermal Resource Area, where our power plants are located, has the proven capacity to provide clean renewable energy for homes and businesses for several communities in California for the next 30 years.”
CalEnergy, LLC was formed by TransAlta and MidAmerican Energy Holdings Company to lead the remarketing initiative required to extend the life of CE Generation, LLC’s 10 geothermal generating facilities in the Salton Sea Known Geothermal Resource Area.
TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta’s focus is to efficiently operate geothermal, wind, hydro, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and lives. TransAlta has been selected by Jantzi-Sustainalytics as one of Canada’s Top 50 Socially Responsible Companies since 2009 and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good. TransAlta is Canada’s largest investor-owned renewable energy provider. Information about TransAlta is available at www.transalta.com.
MidAmerican Energy Holdings Company
MidAmerican Energy Holdings Company, based in Des Moines, Iowa, is a global provider of energy services. Through its energy-related businesses, MidAmerican provides electric and natural gas service to more than 7 million customers worldwide. These businesses are Pacific Power, Rocky Mountain Power and PacifiCorp Energy, comprising PacifiCorp; MidAmerican Energy Company; Northern Powergrid Holdings Company; Northern Natural Gas Company; Kern River Gas Transmission Company; MidAmerican Renewables; MidAmerican Transmission; and CalEnergy Philippines. Information about MidAmerican is available at www.midamerican.com.
MidAmerican Renewables owns and operates solar, wind, geothermal and hydro projects in the unregulated renewables market. MidAmerican Geothermal, a subsidiary of MidAmerican Renewables, is an Imperial Valley, Calif.-based geothermal power producer. The company oversees 10 geothermal facilities in California’s Imperial Valley.