PG&E Corp. last week made another stride to bring moreelectricity generating projects online in an attempt to provideCalifornia with an adequate power supply in the future. The companyentered into an agreement with Waste Management Inc. to replace 120diesel-fueled garbage collection trucks with natural gas-fueledversions in order to offset the emissions of a proposed 500 MWnatural gas-fired power plant to be located in San Diego County.

This project marks the first time in the nation that emissionreductions from mobile sources have been used to offset emissionsfrom a major new stationary source. The diesel-powered trucks willbe replaced with natural gas-fired Mack trucks, which will reduceemissions by more than 50%. PG&E National Energy Group (NEG)and Waste Management together will spend $33 million on the fleetconversion project.

The air emission credits earned through this project will beused by the PG&E National Energy Group to help offset emissionsfrom the proposed Otay Mesa generating project.

“As we have seen this summer, there is a critical need for newpower supplies in California, including the San Diego region. Newbase-load power plants, like Otay Mesa, are the long-term solutionto the immediate problem,” said Thomas B. King, president of thePG&E NEG’s West Region.

PG&E NEG will pay for the difference in cost betweenreplacing the existing 120 trucks with new diesel-fueled engines,and replacing them with the more expensive liquefied natural gas(LNG) fuel systems. The company will also construct an LNG fuelstation, which can be used by other fleets that convert as well.

The trucks will be replaced on an expedited schedule of 18months. The replacement of the trucks will account for one-third ofthe offset needed for the power plant to be built. The remainingtwo-thirds of emission reduction will come from the conversion tocleaner burning fuel of two of San Diego Harbor Excursions’vessels, and from other stationary sources in San Diego County.

The construction of Otay Mesa marks the first major power plantto be built in San Diego County in almost 30 years. Scheduled forcommercial service in the middle of 2003, the facility willgenerate enough power for a half million homes. Construction beginsearly next year.

Alex Steis

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