Southern California Edison Offers New Type of Special Offer

"Biomass Standard Contract," designed to help smaller biomass generators contribute to reaching California's aggressive renewable energy and environmental goals.

ROSEMEAD, Calif., May 14, 2007—Southern California Edison (SCE), the nation's leading purchaser of renewable energy, today issued a new power contracting option called a "Biomass Standard Contract," designed to help smaller biomass generators contribute to reaching California's aggressive renewable energy and environmental goals.

"Governor Schwarzenegger asked our industry to find ways to step up the use of the state's renewable biomass resources to generate electricity," said Pedro Pizarro, SCE's senior vice president of power procurement. "We believe this innovative approach will do just that, prompting many small biomass generators to join California's growing renewable energy industry."

Prior to SCE's new initiative, California biomass projects with generating capacities between 100 kilowatts and 1 megawatt (MW1) had limited opportunities to sell their energy. SCE's new Biomass Standard Contract opens the door for these projects, and provides a faster, simpler way for biomass projects under 20 MW to sell their power to utility customers.

SCE is offering three new biomass contract options for projects with less than 1 MW of generating capacity, 1 MW to 5 MW, and greater than 5 MW to 20 MW. Contract terms of 10, 15, or 20 years will be accepted. The utility plans to accept up to 250 MW of new biomass capacity through the new program. Final agreements are subject to review and approval by the California Public Utilities Commission.

"Meeting California's aggressive renewable energy and environmental goals will require bold, innovative ideas," said Stuart Hemphill, SCE director of renewable and alternative power. "Long before there was a California renewable portfolio standard or state legislation reducing greenhouse gas emissions, SCE committed itself to pursuing such innovations, beginning with the company's pledge in 1980, 'to devote our resources to the accelerated development of renewable power sources.'"

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Additional information is available at where biomass project developers can complete an online application by clicking on "Biomass Standard Contracts." The application will be reviewed by the utility and, if qualified, finalized. SCE's new contracts will be available until Dec. 31, 2007, and may be withdrawn after a total of 250 MW are enrolled.

1One MW is enough power to serve approximately 650 average homes at one point in time.

Background Facts
- The governor's executive order - S-06-06, issued in April 2006 - stated, "…abundant biomass resources from agriculture, forestry, and urban wastes can be tapped to provide transportation fuels and electricity to satisfy California's fuel and energy needs…biofuels offer greenhouse gas reduction benefits…." The order set a target of acquiring a sizeable part of the state's total renewable generation goal from biomass energy.

- Biomass projects eligible for SCE's new standard contracts include landfill gas, municipal solid waste, wood, fuel cell, digester gas, and sewer gas.

- According to the California Energy Commission's Biomass Resource Assessment draft report, issued in April 2005, the state has 4,700 MW of potential biofuel energy, enough power to serve 3 million average homes.

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