PG&E To Buy Solar Power From 2 S California Solar Projects

   DOW JONES NEWSWIRES 
 

PG&E Corp. (PCG) agreed to acquire solar energy from two California projects, one by FPL Group Inc. (FPL), and PG&E looks to continue building its power sources.

Utilities are increasingly tapping alternative-energy sources of power as such efforts have become cheaper and as uncertainty continues about the potential of federal taxes on carbon use and carbon-dioxide emissions.

FPL's NextEra is the nation's largest producer of wind power and has contracted to sell 250 megawatts of power from a proposed project in southern California to Pacific Gas & Electric. The NextEra project is slated to become operational in two stages ,in 2013 and 2014, respectively, and deliver about 560-gigawatt hours of energy annually. That is the annual consumption of more than 80,000 homes.

PG&E also intends to obtain 250 megawatts of power from a proposed solar project by Spain's Abengoa SA (ABG.MC). That facility, intended to general more than 600 gigawatt-hours annually, is set to be fully operational by late 2013.

Both projects will use proven solar-thermal technology to generate renewable energy for PG&E's electric customers. Curved mirrors in the shape of troughs will focus solar energy onto fluid-filled tubes extending the length of each trough. The heated fluid will then be used to create steam for generating electricity.

PG&E has some 15 million customers in central and northern California. Its shares were recently up 14 cents at $41.83 while FPL's shares rose 14 cents to $52.77.

-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; [e-mail]