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Contracts Signed in Southern California Edison Solicitation Further Enable NRG Energy to Help Transform California's Energy Future

NRG

NRG Energy (NYSE:NRG) has been awarded multiple contracts with Southern California Edison to:

  • Repower the company’s Mandalay facility in Oxnard with 262 megawatts (MW) of newer, more flexible and efficient natural gas generation under a 20-year PPA with SCE
  • Install 178 MW of “Preferred Resources” that include both demand response and energy efficiency products to be deployed under long-term contracts at sites across Southern California
  • Develop a two megawatt-hour battery storage system

“This is a tremendous opportunity to advance the forward-thinking efforts of the State of California and Southern California Edison to make a significantly more sustainable and reliable electricity grid,” said John Chillemi, President of NRG Energy’s West Region. “I am proud that NRG can be an important part of this transformation and help meet California’s growing demand for cleaner power and Preferred Resources.”

The repowering of Mandalay is designed to ensure continued reliability and to help integrate renewables into the grid and will also involve the removal the two large steam units at the site, enhancing the coastal viewshed. The repowered Mandalay units are expected to come online in 2020.

The Mandalay repowering project complements NRG’s 600 MW Carlsbad Energy Center, in which NRG will remove the five steam units at its existing site in Carlsbad, California and replace them with smaller, flexible, fast start peaking units. The Carlsbad Energy Center is expected to help integrate renewables into the grid, eliminate once-through cooling, and result in a significantly reduced environmental and visual profile. The Carlsbad Energy Center is expected to come online in late 2017, and is awaiting CPUC approval of a 20 year PPA with SDG&E.

Ongoing Commitment to California

These contracts follow a string of successful projects that have helped bring more renewable power to California through solar and wind generation backed up by new flexible gas generation. NRG, individually or through its subsidiary NRG Yield, Inc. (NYSE: NYLD), owns the 720 MW Marsh Landing, 550 MW El Segundo and 500 MW Walnut Creek power plants that all have fast start capabilities, allowing them to come online quickly when renewable power decreases. In addition, NRG Yield owns the nation’s largest wind farm, located in California. Through both NRG and NRG Yield, the companies provide more than a thousand megawatts of solar to the state from numerous large and small solar arrays, including the world’s largest concentrated solar thermal project.

NRG has transformed Levi’s Stadium in Santa Clara into a solar generator that can power a season of NFL home games. The company also operates the eVgo network which has completed installation on more than 85 DC fast chargers to support California’s 100,000 electric vehicles and is retrofitting eVgo electric vehicle charging sites to be compatible with the new DC fast charger standard being used by the BMW i3, Chevrolet Spark and Volkswagen eGolf. DC fast chargers can charge most electric vehicles to 80% of full charge in 30 minutes or less.

“This is an important opportunity to help realize the aggressive environmental goals of California,” added Chillemi. “We look forward to working with the many stakeholders across the state to make this transformation a reality.”

About NRG

NRG is leading a customer-driven change in the U.S. energy industry by delivering cleaner and smarter energy choices, while building on the strength of the nation’s largest and most diverse competitive power portfolio. A Fortune 250 company, we create value through reliable and efficient conventional generation while driving innovation in solar and renewable power, electric vehicle ecosystems, carbon capture technology and customer-centric energy solutions. Our retail electricity providers serve nearly 3 million residential and commercial customers throughout the country. More information is available at www.nrg.com. Connect with NRG Energy on Facebook and follow us on Twitter @nrgenergy.

NRG Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions and include NRG’s expectations regarding the Mandalay repowering and “preferred resources.” Forward-looking statements typically can be identified by the use of words such as “will,” “expect,” “believe,” and similar terms. Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, general economic conditions, hazards customary in the power industry, competition in wholesale power markets, the volatility of energy and fuel prices, failure of customers to perform under contracts, changes in the wholesale power markets, changes in government regulation of markets and of environmental emissions, and our ability to achieve the expected benefits and timing of our renewable projects. NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect NRG’s future results included in NRG’s filings with the Securities and Exchange Commission at www.sec.gov.

For NRG Energy
Media:
Karen Cleeve, 609-524-4608
or
David Knox, 713-537-2130
or
Investors:
Chad Plotkin, 609-524-4526



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