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SDG & E; Chooses Peak Providers

San Diego Gas & Electric Co. selected two companies out of 30 bids for “peaker” plants, which are used specifically during high electricity use, the company announced May 14.

Tokyo-based J-Power USA Development Co. Ltd. and Sacramento-based Wellhead Power Margarita LLC will supply 130 megawatts of quick-start generation through the peaker plants starting in 2008, according to SDGE spokeswoman Jennifer Briscoe. A need for additional plants was reported after the record-high electricity use last summer, according to a news release.

The contract for J-Power requires the construction of two simple-cycle, gas-fired peaking plants at SDG & E;’s substation in Pala.

The Wellhead contract includes the development of a simple-cycle, gas-fired turbine adjacent to an SDG & E; substation in southern Orange County.

SDG & E; signed power-purchase agreements with both companies and the California Public Utilities Commission is expected to approve the contracts by October. Financial terms of the contracts were undisclosed. At the end of the 25-year agreements, both companies will turn over the peaker plants to SDG & E.;

, Jaimy Lee

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