Silicon Valley Power (SVP), the city of Santa Clara, California's municipal electric utility, is a step ahead of the game on renewable energy. With reductions in its large contract with the Western Area Power Administration (WAPA) last year and the expiration of its arrangement with the Bonneville Power Administration in September 2005, SVP will purchase wind energy from PPM Energy (Portland, Oregon) to bolster its already substantial renewable energy portfolio. Deliveries under the contract are expected to begin Jan. 1, 2006.

PPM Energy, which has a portfolio of more than 830 MW of wind power currently in operation in seven states, will deliver wind power at a fixed cost that is competitive with natural gas resources. As a member of the Modesto-Santa Clara-Redding Public Power Agency, Santa Clara's SVP will receive up to 75 MW for the next 20 years under this new contract. One megawatt is enough to serve 750 to 1000 homes.

“Santa Clara's commitment to renewable energy started three decades ago, and we are really excited about the addition of these wind resources to our current power mix of 24% renewable,” says Junona Jonas, Santa Clara Electric Utility director. “SVP's smart investment in renewable energy has really paid off for our customers, who currently realize a savings of 30% to 40% over surrounding communities with more than double the amount of renewable energy.”

This renewable power purchase is expected to offset nonrenewable purchases from other California market energy sources.