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PG&E, Destec Enter Transmission Agreement

Fortnightly Magazine - January 15 1995

Pacific Gas and Electric Co. (PG&E) and Destec Energy Inc. have entered into the nation's first comprehensive transmission and services agreement between a utility and a power marketer. The deal will allow Destec's power marketing subsidiary, Destec Power Services Inc. (DPS), to pool electricity and wholesale it directly using PG&E's transmission lines. A request for plan approval was filed at the Federal Energy Regulatory Commission on December 6. The five-year agreement calls for DPS to purchase transmission from PG&E based on DPS's anticipated maximum wholesale demand, rather than on reservations for each point-to-point path. DPS will also purchase and/or supply services to help maintain system reliability.

Pursuant to a separate agreement, DPS will be able to approach qualifying facilities (QFs) and buy surplus power that exceeds firm capacity under contract by QFs to PG&E. During those times, PG&E will be relieved of its QF purchase obligations. (em LB

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