Southern California Gas, SDG&E target biogas production

(ADPnews) - Nov 25, 2010 - US utilities Southern California Gas Co and San Diego Gas & Electric (SDG&E) said on Tuesday that they have applied for approval to develop and operate biogas plants to produce clean gas from organic waste.

The companies, units of energy services holding company Sempra Energy (NYSE:SRE), have filed their application with the California Public Utilities Commission (CPUC).

They plan to set up bioenergy production and gas conditioning facilities to process organic waste from water treatment plants, farms and other operations.

The utilities said they would secure the capital needed to offer gas conditioning and bioenergy production services for a fee under a long-term agreement. If the two companies get permission for their proposal, they will share part of the proceeds with utility ratepayers.

The CPUC is expected to announce its decision next year.

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