California utility Pacific Gas and Electric Company (PG&E), a subsidiary of PG&E Corporation (NYSE: PCG), announced that it has contracted with Iberdrola Renewables, Inc. (IBR.MC) to purchase and operate a 246-megawatts (MW) wind farm to be built in Southern California.
The total capital cost of the Manzana Wind Project is estimated at just over $900 million, which includes payments to Iberdrola Renewables to develop and build the facility, along with other costs that PG&E will incur. PG&E will make progress payments as significant milestones are met.
Manzana would be the first wind project owned by PG&E. It follows several agreements signed this year for up to 830 MW of solar power.
The Manzana project would be located on about 7,000 acres in the Tehachapi region of Eastern Kern County, a site with favorable wind resources. If approved by the California Public Utilities Commission, the project could begin producing power by December 2011.
With a projected annual output of up to 670 gigawatt-hours (GWh) per year, equal to the energy consumed by about 100,000 average homes, the Manzana project would contribute significantly to PG&E's requirements under California's Renewable Portfolio Standard.
Rates for customers who receive electric generation, transmission and distribution services from the utility would increase 1.1% in 2012 compared to 2009. The average residential customer, who consumes 550 kilowatt-hours per month, would pay $0.25 more per month--from $74.13 to $74.38.
Pacific Gas and Electric Company serves 15 million people in northern and central California.
