Southern California Edison said it has reached an agreement with renewable energy generator Calpine to purchase 225 megawatt of geothermal energy. The deal is subject to approval by the California Public Utilities Commission.
If approved, the pact would replace an existing contract and could provide Edison customers with renewable energy for 10 additional years. The contract would also increase Calpine's current electricity delivery by 25 megawatts.
Edison, which said it's the leading U.S.-based producer of renewable energy, said the deal will provide enough electricity to power 130,000 homes. The power will come from Calpine's geyser facilities in California's Sonoma and Lake Counties.
Additionally, the deal also includes a provision for 714 megawatts of power from Calpine's Pastoria Energy Facility in the event of an unexpected surge in demand, the Rosemead-based utility company said in a statement.
Shares in Edison were down 18 cents to $51.11 in afternoon trading Friday on the New York Stock Exchange.
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