LOS ANGELES, March 4, 2003 - Proving that energy efficiency can result in significant savings, Southern California Gas Co. (The Gas Companyr) will present a $630,000 incentive check later this week to Techni-Cast Corp. for its installation of a $2.1 million high-efficiency cogeneration system, which produces both electricity and usable heat.
Techni-Cast Corp., founders and machinists of ferrous and non-ferrous centrifugal castings, qualified for the award by participating in the Self Generation Incentive Program, a state-sponsored energy efficiency program that provides financial incentives to businesses for generating their own electricity on-site.
"The Self-Generation Incentive Program made the difference in our investment decision," said Bryn Van Hiel, president of Techni-Cast, which is based in South Gate. "We'll benefit from an environmentally friendly technology, a reliable source of electricity, and an annual reduction of about $400,000-$600,000 in our total energy costs."
Techni-Cast installed a natural-gas-fired GE Jenbacher unit, which has an engine generator efficiency rating of 35 percent. After recovering the waste heat, however, the unit's efficiency increases to 56 percent.
The unit's 1,063 kilowatts of electricity satisfies about 85 percent of the company's electric load for its furnaces. The system captures the waste heat for pre-heating metal and also for hot and cold water, which is used for an air conditioning system.
The California Public Utilities Commission (CPUC) launched the Self-Generation Incentive Program in 2001 in response to California's electricity crisis. The program provides qualifying businesses with incentives of up to 50 percent of the costs of buying and installing electric generation systems.
"The Gas Company expects to award up to $54 million in incentives during the four-year life of the program," said Richard M. Morrow, vice president of customer service for major markets at Sempra Energy Utilities (The Gas Company and San Diego Gas & Electric). "This program helps us maintain a competitive regional economy by making the purchase and installation of eligible technologies more affordable than ever."
As part of its commitment to exceptional customer service, The Gas Company supports this program through marketing, customer assistance and other administration activities throughout its service territory, which covers almost all of Southern California, Morrow added.
The Self-Generation Incentive Program offers the following incentives for generation projects of up to 1.5 MW:
- $4.50 per watt (not to exceed half of the total project cost) for using photovoltaic, wind turbines and fuel cells operating on renewable fuel;
$2.50 per watt (not to exceed 40 percent of the total project cost) for fuel cells operating on non-renewable fuels;
$1.50 per watt (not to exceed 40 percent of the total project cost) for micro-turbines, internal combustion engines and small gas turbines operating on renewable fuel; and
$1.00 per watt (not to exceed 30 percent of the total project cost) for microturbines, internal combustion engines and small turbines with combined heat and power.
The Gas Company expects participating customers to develop a total of 50 to 60 megawatts of base load generation power - enough electricity to meet the needs of 50,000 to 60,000 homes.
For more information on the Self-Generation Incentive Program, customers can visit The Gas Company's Web site at www.socalgas.com/business/selfgen.
The Gas Company is the nation's largest natural gas distribution utility, providing safe and reliable energy to 18 million consumers through 5.1 million meters. The company's service territory encompasses 23,000 square miles in most of central and Southern California. The Gas Company strives to provide exceptional customer service to enhance the quality of life in the community. The Gas Company is part of Sempra Energy Utilities, the umbrella for Sempra Energy's regulated California utilities. Sempra Energy (NYSE: SRE), based in San Diego, is a Fortune 500 energy services holding company.