Pacific Gas and Electric Co. (PG&E) has auctioned the geothermal power plants that it owns and operates in the Geysers resource area of Northern California — PG&E owns plants in Lake County and Sonoma County. Under California's electricity restructuring law, proceeds from the power plant sales will be used to pay down the utility's stranded costs. Buyers of utility-owned plants must also contract with the utility to operate and maintain the facilities for two years after the sale.
On November 24, PG&E announced that FPL Energy, Inc. was the winning bidder for the geothermal plants — FPL Energy currently owns and operates 108 MW (net) of geothermal capacity in California and Nevada. However, under existing contracts with PG&E, the geothermal steam suppliers have the right of first refusal to match the winning bid. On December 1, Calpine Corporation announced that it had exercised its right to purchase the Lake County plants, totaling 150 MW, by matching the winning bid of $73.8 million. Calpine and another steam owner, Unocal Corporation, have 90 days to execute their right to purchase the Sonoma County plants as well.
News Release - Calpine Exercises Right of First Refusal to Acquire PG&E's Lake County Geothermal Power Plants
News Release - FPL Group Announces Acquisition of Geothermal Assets in California - No longer online at fpl.com
PG&E Contact: News Department, (415) 973-5930