News | January 10, 2006

Memorandum Of Understanding Issued Over Interconnection Of Biogas Developments

Portsmouth, NH - Microgy, Inc. has signed a Memorandum of Understanding (the MOU) with Pacific Gas and Electric Company (PG&E) regarding the interconnection of renewable biogas projects located in the State of California.

Under the terms of the MOU, PG&E agrees to assist Microgy in identifying potential points of interconnection with PG&E's natural gas transmission network for new biogas projects. Microgy will be solely responsible for developing the biogas-producing facilities and ensuring that the biogas delivered to PG&E's pipeline system meets PG&E's technical specifications, including gas quality and delivery pressure. PG&E will work with Microgy to determine the best manner in which to interconnect Microgy's facilities to PG&E's pipeline network and the best locations for such interconnections.

Kam Tejwani, chief executive officer of Environmental Power Corporation, stated, "We are pleased that PG&E, one of the largest and most innovative natural gas utilities in the country, is receptive to the development of renewable gas facilities that can be interconnected with PG&E's system in California . There is value for energy consumers in the state and for California's dairy sector from the development of such resources. California is the largest dairy producer and the largest energy consumer in the US. If successful this initiative promises to help meet the challenges faced by both sectors."

Robert Howard, Vice President of PG&E's California Gas Transmission unit, stated that "PG&E is open to broadening its access to additional natural gas supplies for our customers." He added, "This initiative is promising because it offers new supplies that are renewable, cost effective and located within the state."

SOURCE: Environmental Power Corporation