DESERT HOT SPRINGS, Calif., July 28, 2011 /PRNewswire/ -- Competitive Power Ventures, Inc. (CPV), GE Energy Financial Services and Diamond Generating Corporation (DGC) announced today that they have broken ground on their co-owned, gas-fired 800-megawatt (MW) CPV Sentinel Energy Center in Riverside County, California.
The $900 million CPV Sentinel power plant is located near Desert Hot Springs, five miles northwest of Palm Springs. It is expected to create 300 construction jobs with a $40 million payroll, along with nearly 400 indirect jobs with a $15 million payroll. The project will provide an estimated $30 million in sales tax during construction and an estimated $6.4 million in annual property taxes once operational in the summer of 2013.
Joining the three companies for the groundbreaking was a bipartisan group headlined by Assemblymember V. Manuel Perez, the author of a California state law that was critical in the project's development. Also in attendance was the co-author of the law, Assemblymember Brian Nestande, Riverside County Supervisor (and former State Senator) John Benoit, as well as long-time local supporters, including Riverside County Supervisor Marion Ashley and Desert Hot Springs Mayor Yvonne Parks along with City Councilmember's from Desert Hot Springs and Palm Springs.
"We are incredibly proud of the jobs our project is creating at this pivotal time in the recovery of the economy," said Doug Egan, CEO of Competitive Power Ventures. "So many people and organizations contributed to making this project a success; it was truly an amazing effort between the public and private sector."
Gemma Power Systems California, Inc. is the general contractor overseeing construction of the project. CPV Sentinel will supply power to the Coachella Valley and Los Angeles Basin under a long-term power purchase agreement with Southern California Edison, an Edison International (NYSE: EIX) company. CPV will manage the project, while DGC will serve as the plant's operator.
"Today's groundbreaking marks a great milestone made possible by CPV's vision and persistence, GE's energy project development partnership capabilities and technology, the cooperation of governments and our neighbors, and now the workers who will build this project that will facilitate the growth of intermittent energy sources like wind and solar in southern California," said Alex Urquhart, president and CEO of GE Energy Financial Services.
Using eight of GE's efficient, quick-starting LMS100 gas turbines, the CPV Sentinel power plant will help prevent blackouts during extremely hot weather by providing peak power on demand. Given CPV Sentinel's close proximity to 600 MW of wind farms, the project also will support California in meeting its goal of generating 33 percent of its power from renewable sources by 2020 by facilitating the integration of wind and solar power into the electric grid. When it becomes operational, the project will be able to power approximately 640,000 homes.
"With our headquarters in downtown Los Angeles, and our Indigo Energy Facility only a mile or so down the road from Sentinel, we have been a part of the local economy in Southern California for more than 2 decades," noted DGC Senior Vice President Bo Buchynsky. "We especially appreciate having another project in our backyard, where we can continue to support the local economy and be part of Southern California's energy future."
CPV, the managing member and developer, owns 25 percent of the project, while DGC and GE own 50 percent and 25 percent, respectively.
Click here for photos of the project under construction.
About GE Energy Financial Services
GE Energy Financial Services' experts invest globally across the capital spectrum in essential, long-lived, and capital-intensive energy assets that meet the world's energy needs. In addition to capital, GE Energy Financial Services offers the best of GE.'s technical know-how, technology innovation, financial strength, and rigorous risk management. Based in Stamford, Connecticut, the GE business unit helps its customers and GE grow through new investments, strong partnerships, and optimization of its $21 billion in assets.
GE (NYSE: GE) is an advanced technology, services and finance company taking on the world's toughest challenges. Dedicated to innovation in energy, health, transportation and infrastructure, GE operates in more than 100 countries and employs about 300,000 people worldwide. GE also serves the energy sector by providing technology and service solutions that are based on a commitment to quality and innovation. The company continues to invest in new technology solutions and grow through strategic acquisitions to strengthen its local presence and better serve customers around the world. The businesses that comprise GE Energy www.ge.com/energy-GE Power & Water, GE Energy Services and GE Oil & Gas-work together with more than 90,000 global employees and 2010 revenues of $38 billion, to provide integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; as well as other alternative fuels and new grid modernization technologies to meet 21st century energy needs.
About Competitive Power Ventures
Competitive Power Ventures, LLC (CPV) is dedicated to increasing North America's sustainability; both economically and environmentally. Using domestically available energy sources, like wind and natural gas, and partnering with host communities to support their tax base and school districts, CPV works to stabilize and improve local and state economies. CPV's corporate mission is built around a belief that progressive companies can be powerful agents of change for a better world and a cleaner environment. To this end, we have focused our core activities around developing and operating energy facilities that can make a significant difference in improving the environments and economic circumstances of the regions in which they are located. Headquartered in Silver Spring, Md., with offices in Braintree, Mass., San Francisco, Calif., and Toronto, Ontario, the company currently has 5,965 MW of conventional generation projects in various stages of development. The company's Asset Management division has ramped up to more than 4,737 MW of natural gas generation under management and has expanding into wind generation facility management. CPV Renewable Energy Company (REC) is currently developing 4,452 MW of wind power projects across North America, with plans for more. CPV REC has recently expanded its development portfolio to include utility scale solar power generation.
About Diamond Generating Corporation
As a wholly owned subsidiary of Mitsubishi Corporation, one of the world's most diverse enterprises, with over 500 subsidiaries and affiliates worldwide, Diamond Generating Corporation has developed a reputation for financial strength and long-term stability. Our expertise in power development and generation, including greenfield development, acquisition, fuel procurement, financing, construction, operations management and asset management has resulted in a portfolio of efficient, state-of-the-art, environmentally sound generating facilities.
Headquartered in Los Angeles, DGC currently owns 10 operating power generating facilities around the U.S. totaling 6,226 MW, with about 2,000 MW of net equity. Of these projects, two are wind projects, the 125-MW Goshen II Wind Project in operation and the 80-MW Rockland Wind Project, which is under construction. The remainder of the portfolio is natural-gas fired. DGC currently operates two of its facilities in Southern California.
SOURCE Competitive Power Ventures, Inc.