SDG&E Completes First Power Purchase Agreements With Diverse Business Enterprise Supplier

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Aug 01, 2012, 12:36 ET

SAN DIEGO, Aug. 1, 2012 /PRNewswire/ -- San Diego Gas & Electric (SDG&E) today announced that it successfully completed three short-term power purchase agreements with a diverse business enterprise (DBE) supplier, Diversified Energy Supply. The wholesale power purchases represent approximately two percent of monthly electricity sales to SDG&E customers.

"These three power purchase agreements with Diversified Energy Supply represent a significant milestone for SDG&E, as they are the first electric procurement transactions SDG&E has completed with a minority-owned business," said Matt Burkhart, SDG&E's vice president of electric and fuel procurement.

SDG&E has been a national leader in providing opportunities for DBE natural gas businesses for more than 20 years. In 2011, SDG&E purchased more than $65.5 million, or 34 percent, of natural gas for electric generation supply from DBE suppliers.

Starting in 2011, SDG&E began planning for the California Public Utilities Commission Utility Supplier Diversity Program's new requirement to report on DBE spending in electric power procurement.

"Meeting the goal of adding DBE suppliers to electric procurement this year was challenging. We look forward to continuing to expand DBE participation in our procurement portfolio as we meet our retail customers' needs," Burkhart added.

Overall, in 2011 SDG&E reported that 38.13 percent of products and services were provided by DBEs. SDG&E spent a total of $546 million on purchases with women, minority, and service-disabled veteran-owned businesses in 2011 – a nearly 42 percent increase in spending over 2010.

SDG&E is a regulated public utility that provides safe and reliable energy service to 3.4 million consumers through 1.4 million electric meters and more than 850,000 natural gas meters in San Diego and southern Orange counties. The utility's area spans 4,100 square miles. SDG&E is committed to creating ways to help customers save energy and money every day. SDG&E is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company based in San Diego.

DES Wholesale, LLC dba Diversified Energy Supply is a privately held energy and services company. Diversified Energy Supply provides wholesale natural gas and electric power supply to customers nationwide. Additionally, the company has two subsidiaries: a fleet fuel and services subsidiary, Diversified Fuel Supply; and a retail natural gas and electric marketing company, DES Retail, LLC. Diversified Energy Supply and its subsidiaries hold numerous federal and state regulatory licenses and are also certified as a minority business enterprise by the National Minority Supplier Development Council. The company is led by its president, Fernando F. de Aguero.

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SOURCE San Diego Gas & Electric (SDG&E)