ANAHEIM, CA (February 28, 2007) - Anaheim Public Utilities moved another step closer toward reaching its goal of boosting the city’s renewable energy resource use following the City Council’s approval Tuesday night of a pair of agreements for electricity generated from landfill gas.

The council approved a short-term purchase agreement with Brea Power Partners, LP, for 5 megawatts of landfill gas and a long-term purchase agreement with Brea Power II, LLC, for 25 megawatts of landfill gas. The short-term agreement is from an existing generating facility, while the second agreement will provide 25 megawatts of capacity from a new unit that will be constructed over the next two years. This is enough electricity to serve about 23,500 Anaheim residences.

The latest agreements are part of a comprehensive citywide strategy to protect our environment and allow a market for these options to flourish without putting taxpayers and ratepayers at risk. Anaheim Public Utilities is promoting that strategy through the launch of its Green Connection Program, which includes several rebate and incentive offers that address key environmental concerns and take action to implement environmental protection.

The agreements also reaffirm the Anaheim City Council’s commitment to clean and affordable renewable power sources as Mayor Curt Pringle emphasized in his State of the City address last month.

“Our utility is continuing to pursue alternate, renewable means of producing power,” Pringle said, “while still keeping our rates far below those of neighboring cities.”

“With these landfill agreements, the share of renewable resources in our department’s power portfolio will increase to approximately 14 percent by 2010,” said Marcie Edwards, general manager of Anaheim Public Utilities. “Additionally, because electricity generated from landfill gas reduces, rather than increases, greenhouse gas emissions, Anaheim will be in a position to receive credits for its emissions as a result of the agreements. The value of these credits to Anaheim could potentially be as much as $1 million annually.”

California State Senate Bill (1078) requires retail sellers of electricity to increase the share of renewable resource generation in their power portfolios. To comply with this legislation, Anaheim Public Utilities developed a Renewable Portfolio Standard (RPS), which was approved by the City Council in August 2006 under the Green Connection Resolution. Currently, the utility has increased its target renewable resource share in its power portfolio to 20 percent by the end of 2015.

Renewable resources are defined as non-fossil fueled resources. In addition to landfill gas, they include geothermal, hydropower, solar, biomass and municipal solid waste.

“We owe it to future generations to protect the environment,” Edwards said. “At the same time, we are committed to providing our customers with a reliable power supply at the lowest possible rate. These agreements afford us the opportunity to do both. What’s more, greater reliance on renewable energy helps to protect us against volatile fossil fuel prices, and we anticipate no adverse impact on customer rates from these agreements.”