SAN FRANCISCO, Sept. 11, 2000 à‚– PG&E Corp. said its National Energy Group has executed contracts to secure 50 turbines representing a development portfolio of approximately 16,000 MW of electric power.
The contracts include 4 7FA and 19 7FB turbines from General Electric Co. unit GE Power Systems, as well as 21 Mitsubishi MHI 501G turbines, and 6 Siemens Westinghouse SW 501G turbines. Experts estimate the value of the machines, excluding any steam turbines, at about $1.5 billion.
The contracts mark PG&E National Energy Group’s largest turbine commitment to date and diversifies its turbine portfolio. Delivery of the turbines is scheduled through 2004.
Utility companies are evaluating their deregulation strategies and “PG&E is clearly going to be a power producer,” says Max Meyer, a researcher with Frost & Sullivan, a consulting firm based in San Jose, Calif.
The company said the units will be deployed in the US to support new electric generating development projects. Most of the turbines will be funded through a creative off-balance sheet financing arranged by Societe Generale, PG&E said, under which the turbine purchases and related project costs will not require any near-term cash outlays.
PG&E National Energy Group Pres. Thomas G. Boren president said with a substantial turbine procurement program under way, the company is well on its way to satisfying regional energy needs and meeting its development goals.
Through its National Energy Group, PG&E has ownership and management interests in 30 operating electric power generating plants in 10 states, providing it with a generation portfolio of more than 7,000 MW. It has more than 10,000 MW in new power plant development and construction currently under way.