For more information, contact:
Julie White, Director, Communications, at 515-281-2785
IMPERIAL VALLEY, Calif. – (Sept. 27, 2013) – CalEnergy has been operating in the Imperial Valley for more than 25 years and is making necessary preparations to extend that by another 25 years or more. The company recently executed two significant geothermal power purchase agreements with the city of Riverside, Calif., and with the Salt River Project in Arizona. The contracts will extend the life of CalEnergy’s existing facilities and contribute greatly to the local economy.
CalEnergy announced an 86-megawatt power purchase agreement with the city of Riverside on June 18. The agreement will provide Riverside 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, and reflects more than 25 percent of the total generation CalEnergy has available for recontracting.
“This significant contract with the city of Riverside, providing more than 20 percent of its total energy needs, speaks volumes about the advantages of base load geothermal generation,” said Steve Larsen, president of CalEnergy. “In addition, it reinforces the Salton Sea Known Geothermal Resource Area as a proven resource to provide renewable energy for homes and businesses well into the future. Our commitment and our efforts are an important step in meeting the ongoing renewable energy needs of California and neighboring states.”
Following the execution of the city of Riverside agreement, CalEnergy executed a 50-megawatt power purchase agreement with the Salt River Project in Arizona.
“It is exciting to welcome the Salt River Project to our list of growing customers,” said Larsen. “This contract builds on our efforts to bring the benefits associated with our geothermal portfolio to key customers for the next 25 or more years.”
When combined with the Riverside agreement, the power purchase agreements represent 40 percent of the total capacity of CalEnergy’s Imperial Valley geothermal facilities.
“The planned improvements and recontracting of CalEnergy’s geothermal plants’ output is great news for the Imperial Valley,” said James Hanks, director of Imperial Irrigation District. “The value of the geothermal industry to our region and economy is strengthened by the addition of CalEnergy’s contracts. Not only does it provide job security for many local residents; it will create additional jobs and additional tax revenue through planned capital improvements of more than $1 billion to the existing plants.”
CalEnergy has been a large contributor to the local tax base for Imperial County for more than 25 years. The new contracts and work to extend the life of its operations will benefit the local area for the next 25 or more years, supporting local schools and other Imperial County improvements.
“I am pleased to hear that CalEnergy will provide geothermal energy well into the future. Imperial County supports the company’s efforts in developing base load renewable energy for California and the nation,” said Ryan Kelley, Imperial County supervisor. “CalEnergy’s efforts are essential to further economic development in the Salton Sea Known Geothermal Resource Area.”
After more than 25 years of strong performance providing geothermal-generated electricity to customers and communities in the southwestern U.S., the new agreements represent a local commitment from CalEnergy and its nearly 240 Imperial Valley employees.
“CalEnergy represents the single-largest tax revenue provider in the county and the largest customer of Imperial Irrigation District,” said Hanks. “Geothermal generation and its development in the Imperial Valley are essential components of the future success of our community and safeguarding of the environment. We are thankful CalEnergy is doing its part to facilitate growth of the local economy.”
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. MidAmerican Geothermal, a subsidiary of MidAmerican Renewables, oversees the 10 geothermal facilities in California’s Imperial Valley.