Citing increased "operating efficiencies," Energy Factors, San Diego, reported record revenue and earnings for the first quarter ended March 31. Net income rose 17% to $1.2 million, while revenue increased 13% to nearly $7 million.
Meanwhile, Chairman Robert Morris told shareholders at the energy co-generation company's annual meeting that Energy Factors has purchased all or part of two plants that will eventually produce and sell steam and electricity.
One of the plants, near Yuba City, Calif., will cost more than $20 million. The company has a contract with Pacific Gas & Electric to sell the co-generated energy to the Northern California utility for the next 30 years.
Energy Factors owns 10% of the other plant, in Martell, about 75 miles southeast of Sacramento. That plant will eventually produce about 18 megawatts per year of electricity, Morris told shareholders. The company paid about $730,000 for its share of the facility, which is now under construction.
San Diego Gas & Electric, which owns 19% of Energy Factors' common stock, was well represented at Wednesday's annual meeting.
Attending were Richard Korpan, SDG&E senior vice president-finance and president of Pacific Diversified Capital, which is in charge of SDG&E's diversification efforts into non-utility ventures; David DeMotte, an SDG&E director who also serves on Energy Factors' board; Ron Burgess, local partner-in-charge of Deloitte, Haskins & Sells, the official auditors for SDG&E and Energy Factors, and Walter Zitlau, who preceded Morris as SDG&E president.
SDG&E sold its Applied Energy subsidiary, which eventually became Energy Factors, in 1983 because federal law prohibits utilities from owning more than 49.9% of a co-generation company.
Ironically, on a day when Energy Factors was touting the money it could save businesses that utilize co-generation, an industry publication reported that San Diego had the highest industrial electricity costs in the nation for the month of March. A hypothetical monthly bill for a manufacturer using 200,000 kilowatt-hours would have totaled $25,499 last month, more than twice as much as the nation's median monthly bill of $11,660.