Contract

by Pacific Gas and Electric Company
May 3rd, 2006
Exhibit 99.3

 


Pacific Gas and Electric Company - Agreements Executed Pursuant to Request for Offers (RFO) for Long Term Generation Resources (1)
 





 
Counterparty/Facility
 
Size (MW)
 
Contract Type (2)(3)(4)
 
Operational Date
 
Plant Type
 
Term
                       
Long-Term Need:
                   
 
Calpine Hayward
 
601
 
PPA
 
2010
 
Combined cycle
 
10
 
EIF Firebaugh
 
399
 
PPA
 
2009
 
Combustion turbine
 
20
 
EIF Fresno
 
196
 
PPA
 
2009
 
Combustion turbine
 
20
 
Starwood Firebaugh
 
118
 
PPA
 
2009
 
Combustion turbine
 
15
 
Tierra Energy Hayward
 
116
 
PPA
 
2009
 
Reciprocating engine
 
20
 
E&L Westcoast Colusa
 
657
 
Utility-owned (PSA)
 
2010
 
Combined cycle
 
life of asset
Total Long-Term Need
 
2,087
               
                       
Humboldt:
                   
 
Wartsila Humboldt
 
163
 
Utility-owned (EPC)
 
2009
 
Reciprocating engine
 
life of asset
                       
Total
 
2,250
               


 
(1)
 
On April 11, 2006, Pacific Gas and Electric Company filed an application with the CPUC seeking approval of these agreements. Other than requirements to use their best efforts to obtain CPUC approval, the parties’ material obligations under these agreements are conditioned upon CPUC approval of the agreements and applicable ratemaking mechanisms. As described in note 2 below, additional conditions must be satisfied for the Calpine Hayward project to proceed.
 
(2)
 
Under a power purchase agreement (PPA) the Utility is responsible for arranging for gas transportation and supplying gas to the generation facility, and is entitled to receive all capacity, energy, and other products generated by the facility. Under a PPA, development, construction, and operation are all performed by a third party. The agreement related to the Calpine Hayward project is a letter of intent to execute a PPA. The execution of the PPA is subject to certain financial conditions, including that the associated Calpine entity emerge from bankruptcy or transfer the project site to a bankruptcy remote entity. If these conditions are not satisfied by October 2006, the letter of intent will terminate.
 
(3)
 
A purchase and sale agreement (PSA) provides for a turnkey acquisition by the Utility of a fully operational, fully permitted generation facility that has been developed, constructed, commissioned, and successfully tested by the seller. Under a PSA, development and construction are performed by a third party. The Utility would own and operate the facility upon closing.
 
(4)
 
A turnkey engineering, procurement, and construction (EPC) agreement permits the Utility either to acquire fully or partially developed projects with rights to permits and site control, or to perform the development activities itself and then engage a contractor to complete the engineering and construction of the facility. The Utility currently owns the site on which the facility will be located and will fund all costs related to the development and construction of the facility.