IMPERIAL VALLEY, Calif. â€“Tuesday, September 17, CalEnergy, LLC, a subsidiary of MidAmerican Energy Holdings Company and TransAlta Corporation (TSX: TA; NYSE: TAC), executed an agreement with Salt River Project that will provide Arizona residents and businesses with additional renewable geothermal energy until 2039. Salt River Projectâ€™s 50 megawatt purchase builds upon an agreement with another purchaser announced earlier this year for 86 megawatts. When combined, the power purchase agreements represent 40 percent of the total capacity of CalEnergyâ€™s Imperial Valley geothermal facilities.
â€œIt is exciting to welcome Salt River Project to our list of growing customers and to send renewable baseload power to Arizona,â€ said Steve Larsen, president of CalEnergy, LLC, which is located near Calipatria, Calif., and within the Imperial Valley and the Salton Sea Known Geothermal Resource Area. â€œThis contract builds on our earlier agreement with the city of Riverside and will bring the benefits associated with our geothermal portfolio to key customers for the next 30 years.â€
Earlier this year, the company announced its new portfolio contract structure for geothermal marketing. Rather than contracting power from individual facilities, the facilities are marketed together as a group providing a more diversified supply and additional flexibility regarding volume and timing to meet customersâ€™ renewable energy supply needs. Customers have the ability to secure contracts in increments as low as 5 megawatts.
CalEnergy will be investing more than $1 billion in capital improvements to its existing facilities to sustain its Salton Sea facilities for another 30 years.
â€œWe remain committed to the importance of economic development in the Imperial Valley area, where our power plants are located,â€ said Larsen. â€œIt is important to the future of our community and environment, and we will continue doing our part to facilitate growth of the renewable energy economy.â€