Major New Solar Energy Project Announced by Southern California Edison and Stirling Energy Systems, Inc.

The 20-year power purchase agreement signed today, which issubject to California Public Utilities Commission approval, calls fordevelopment of a 500-megawatt (MW) solar project 70 miles northeast ofLos Angeles using innovative Stirling dish technology. The agreementincludes an option to expand the project to 850 MW. Initially,Stirling would build a one-MW test facility using 40 of the company's37-foot-diameter dish assemblies. Subsequently, a 20,000-dish arraywould be constructed near Victorville, Calif., during a four-yearperiod.

"At a time of rising fossil-fuel costs and increased concern aboutgreenhouse-gas emissions, the Stirling project would provide enoughclean power to serve 278,000 homes for an entire year," said SCEChairman John Bryson. "Edison is committed to facilitating developmentof new, environmentally sensitive, renewable energy technologies tomeet the growing demand for electricity here and throughout the U.S."

Although Stirling dish technology has been successfully tested for20 years, the SCE-Stirling project represents its first majorapplication in the commercial electricity generation field.Experimental models of the Stirling dish technology have undergonemore than 26,000 hours of successful solar operation. A six-dish modelStirling power project is currently operating at the Sandia NationalLaboratories in Albuquerque, New Mexico.

"We are especially pleased about the financial benefits of thisagreement for our customers and the state," said Alan Fohrer, SCEchief executive officer. "The contract requires no state subsidy andprovides favorable pricing for ratepayers because tests have shown theStirling dish technology can produce electricity at significantlylower costs than other solar technologies."

How It Works

The Stirling dish technology converts thermal energy toelectricity by using a mirror array to focus the sun's rays on thereceiver end of a Stirling engine. The internal side of the receiverthen heats hydrogen gas which expands. The pressure created by theexpanding gas drives a piston, crank shaft, and drive shaft assemblymuch like those found in internal combustion engines but withoutigniting the gas. The drive shaft turns a small electricity generator.The entire energy conversion process takes place within a canister thesize of an oil barrel. The process requires no water and the engine isemission-free.

Comparison to Other Solar Technologies

Tests conducted by SCE and the Sandia National Laboratories haveshown that the Stirling dish technology is almost twice as efficientas other solar technologies. These include parabolic troughs which usethe sun's heat to create steam that drives turbines similar to thosefound in conventional power plants, and photovoltaic cells whichconvert sunlight directly into electricity by means of semiconductingmaterials like those found in computer chips.

Related Facts

-- SCE procured more than 13,000 gigawatt-hours(a) of renewable
energy in 2004, more than any U.S. utility and enough to power
almost two million homes for an entire year.

-- In 2004, more than 18% of the power SCE delivered to the 13
million Californians it serves came from renewable energy
sources.

-- SCE's current renewable portfolio can deliver 2,588 MW of
electricity, including

-- 1,021 MW from wind
-- 892 MW from geothermal
-- 354 MW from solar
-- 226 MW from biomass
-- 95 MW from small hydro.

-- Within the next several weeks, SCE will launch its ninth
request for offers by independent power producers in the past
three years and the third exclusively for proposals by
renewable energy providers. These open, competitive
solicitations have resulted in 12 new renewable contracts with
a maximum potential capacity of 1,630 MW.

(a) A gigawatt equals one billion watts.

Visuals available at www.edisonnews.com

Under "Press Kits", "Edison, America's Leading Purchaser ofRenewable Energy"

-- Two 300 dpi photos of Stirling dish

-- Two artists renderings, one of the inside of a Stirling engine, the other of a large installation of Stirling dishes

-- An animated clip of how the Stirling engine generates electricity

-- Time-lapse photography of a Stirling dish tracking the sun from dawn to dusk

An Edison International (NYSE:EIX) company, Southern CaliforniaEdison is one of the nation's largest electric utilities, serving apopulation of more than 13 million via 4.6 million customer accountsin a 50,000-square-mile service area within central, coastal andSouthern California.