BrightSource & Pacific Gas and Electric to Build Solar-Thermal Generating Stations in Mojave Desert

Pacific Gas and Electric out here in California announced that it reached an agreement with BrightSource Energy to build three new solar-powered electric generating stations in the Mojave Desert. The three could eventually generate up to 900 megawatts of electricity, or the same amount as a major coal-fired power plant, only at lower cost and without producing any greenhouse gases.

The first plant, producing 100 megawatts, and planned for Ivanpah, California could be online as early as 2011. According to the labor agreement signed by the building trades unions and utilities in 1997, the jobs to build and maintain the plants will be high-paying, clean energy union jobs.

“Solar thermal energy is an especially attractive renewable power source because it is available
when needed most in California – during the peak mid-day summer period,” said Fong Wan, vice
president of energy procurement at PG&E. “Through these agreements with BrightSource, we continue
to broaden our renewable energy portfolio and provide our customers with some of the cleanest energy
in the nation.”

BrightSource’s goal is to substantially lower the cost and increase the use of solar energy
throughout the Western United States. “PG&E is making this goal possible by committing to power
purchase agreements that will bring the benefit of carbon-free power to their customers,” noted John
Woolard, president and CEO of BrightSource in making this announcement. “PG&E is demonstrating
true leadership in bringing large scale solar power to California.”

The first of these solar power plants, sized at 100 MW in Ivanpah, California, could be
operating as early as 2011 and is expected to produce 246,000 megawatt hours of renewable electricity
per year. BrightSource will build and place in commercial operation each of its plants as quickly as
permitting and infrastructure allow.

The contracts filed today with the California Public Utilities Commission are part of PG&E’s
broader renewable energy portfolio. Since 2002, PG&E has entered into contracts for more than 2,000
MW of renewable power. California law requires each investor-owned utility to increase the share of
eligible renewable generating resources in its electric power portfolio to 20 percent by 2010. PG&E has
made contractual commitments to have over 20 percent of its future deliveries from renewables. For
2008, PG&E expects to have 14 percent of its energy delivered from renewable sources.

About BrightSource Energy, Inc.

BrightSource Energy designs and builds large-scale power plants capable of delivering solar energy to
industrial and utility customers at prices competitive with fossil fuels. BrightSource enables industrial
and utility customers to lessen their dependency on fossil fuels by providing a clean source of power.
Luz II, Ltd., a wholly owned subsidiary of BrightSource Energy, is located in Israel and is responsible
for solar technology development and the supply of solar fields to BrightSource plants.
Privately held, BrightSource Energy is headquartered in Oakland, California. Further information for
BrightSource and Luz II may be found at www.brightsourceenergy.com.

About Pacific Gas and Electric Co
.
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation, is one of the largest combined
natural gas and electric utilities in the United States. Based in San Francisco, with 20,000 employees,
the company delivers some of the nation’s cleanest energy to 15 million people in northern and central
California. For more information, visit www.pge.com/about/.