Sempra Generation Signs Wind Power Contract With Southern California Edison

Sempra Generation, a subsidiary of Sempra Energy (NYSE: SRE), announced it has signed a 20-year agreement to provide Southern California Edison with up to 250 megawatts (MW) of wind energy generated at the La Rumorosa Wind farm facility under development in Baja California, Mexico.

“This wind power agreement represents an important milestone in the development of the La Rumorosa wind farm project,” said Michael W. Allman, president and chief executive officer of Sempra Generation.

"We are pleased to offer the new Sempra Generation renewable unit its first power-purchase agreement and we welcome them as an important new supplier of California renewable energy," said Stuart Hemphill, director of Southern California Edison’s renewable and alternative power procurement team.

Under the contract, Sempra Generation could start delivering renewable energy to Southern California Edison in 2010. The contract is subject to approval from the California Public Utilities Commission.

Sempra Generation announced it had agreed to acquire the development assets associated with the proposed 250 MW La Rumorosa Wind farm project under a co-development arrangement with San Diego-based Cannon Power Corp.

The La Rumorosa wind farm would generate power from as many as 125 wind turbines to be installed along the easterly ridge lines of the Sierra Juarez mountains in the Ejido Jacume near the town of La Rumorosa, about 70 miles east of San Diego and south across the U.S.-Mexico border.

Future expansion phases of the wind farm project are under consideration. Should Sempra Generation proceed with the development of La Rumorosa, the capital investment for the project is estimated at $400 million.