PG&E Corp.'s (PCG) utility told California regulators Wednesday that it has terminated a geothermal-power contract with Arclight Capital Partners LLC unit Terra-Gen Power.
Under the 25-year contract, signed in 2010, renewable-energy developer Terra-Gen agreed to build a 53-megawatt geothermal power plant near Reno, Nevada, and sell the power to PG&E starting in 2013, when the plant was expected to be completed. PG&E had agreed to pay more than 11.25 cents a kilowatt-hour for the electricity, according to documents filed with the California Public Utilities Commission.
In a letter to the commission Wednesday, PG&E said the contract had been terminated and the utility was withdrawing its previous request for approval of the contract.
