Southern California Gas Offers Monetary Incentives For
Installation Of On-Site Power Generation


New Rebate Program Aimed At Helping to Keep the Lights On

Media Contact: Denise King
The Gas Company
(877) 866-2066
www.socalgas.com

LOS ANGELES, July 9, 2001 -- Customers of Southern California Gas Co. (The Gas Company) who install on-site power-generation systems to supply all or a portion of their own energy needs may now qualify for monetary incentives under a new $13.6 million-a-year rebate program launched today.

The new "self-generation" rebate program is aimed at businesses and large residential complexes.

Electricity-generation systems covered by the program include microturbines, small gas turbines, non-diesel internal combustion engines, solar power (photovoltaics), wind turbines and fuel cells, all of which must be interconnected with the utility grid to qualify for the program. Higher incentives are tied to the use of renewable or super-clean generation technologies, as follows:

  • Renewable Technologies. Systems between 30 kilowatts (kW) and 1 megawatt (MW) that include photovoltaics, wind turbines or fuel cells using renewable fuel can receive a $4.50 per watt incentive, up to a maximum of 50 percent of the project's cost.

  • Fuel Cells. Fuel-cell systems up to 1 MW in size using nonrenewable fuel and waste-heat recovery can receive a $2.50 per watt, up to a maximum of 40 percent of the project's costs.

  • Microturbines, Gas Turbines and Internal Combustion Engines. Systems up to 1 MW in size that use gas turbines, microturbines or internal combustion engines with waste heat recovery can receive $1.00 per watt, up to a maximum of 30 percent of project costs.

"These incentives are great news for our customers and the Southland," said Richard M. Morrow, vice president of customer services and marketing for Energy Transportation Services at The Gas Company. " Not only will this program help our customers become energy-sufficient and self-reliant, it will go a long way in promoting new, environmentally friendly and efficient solutions to tackle our state's energy crisis and filling a critical need for additional power supplies."

Applicants must apply for incentive funding, which is reserved for up to a year until the equipment is installed or the reservation is cancelled. Reservations will be granted on a first-come, first-served basis. Applicants who installed their systems prior to the program launch date may be eligible to apply for an incentive payment from the program retroactively.

California State Assembly Bill 970 directed the California Public Utilities Commission (CPUC) and the state's investor-owned utilities to develop the Self-Generation Incentive Program to reduce electric load from the grid by encouraging on-site power generation. The statewide $125 million per year program runs through December 31, 2004.

Gas Company customers may receive an application, program handbook and additional information by calling 1-800-GAS-2000, visiting The Gas Company's Web site at www.socalgas.com, or sending an e-mail to: selfgeneration@socalgas.com.

Southern California Gas Co. (The Gas Company) is the nation's largest natural gas distribution utility, serving 18 million consumers through 5 million meters. The company's service territory encompasses 23,000 square miles in most of central and Southern California. The Gas Company is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company based in San Diego.

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