LADWP Moves to Accelerate Renewable
December 22, 2005 - RenewableEnergyAccess.com
Los Angeles, California - The Board of Water and
Power Commissioners for the Los Angeles Department
of Water and Power (LADWP) took the first step this
week toward increasing renewable energy sources to
20 percent of the City's power mix by 2010 -- seven
years ahead of the renewable portfolio standard (RPS)
goal that was adopted by the Board and the City Council
earlier this year.
Board President Mary E. Nichols asked LADWP management
to begin meeting with neighborhood councils, homeowners,
businesses and other stakeholders to discuss the accelerated
RPS goals. The accelerated renewable energy plan,
which was presented to the Board during a December
13 workshop, outlines how LADWP would further diversify
its retail energy mix to meet the goal of 20 percent
by 2010 by procuring renewable energy resources to
own and/or purchase. The renewable resources will
include a mix of wind, geothermal, biomass, landfill
gas, small hydroelectricity, and solar power.
"This Board believes we must plan for a greener
Los Angeles and that we can meet future energy needs
with cleaner resources while continuing high standards
of reliability and maintaining a competitive price,"
said Nichols. "We are all concerned about potential
requirements to cut emissions of carbon dioxide and
about the wild fluctuations in natural gas prices.
LADWP needs to be investing in renewable energy as
a form of self protection as well as to benefit the
environment by reducing greenhouse gas emissions."
"LADWP is prepared to move forward with an accelerated
RPS," said LADWP General Manager Ron Deaton. "We
realize it is in the best interests of the ratepayers
and the City to be proactive in terms of diversifying
our energy resources by increasing the level of wind,
geothermal, solar and other renewable energy sources."
To achieve the accelerated RPS goal by 2010, the
Board directed management to provide the following
during the first six months of the new year:
- Update the
10-year Integrated Resource Plan (IRP) to incorporate
a 20 percent by 2010 RPS, develop a timeline to
reduce emissions and increase efficiency of the
older in-basin power plants, increase efficiency
of customer energy use, and plan for expanding
transmission facilities to transport the renewable
energy to Los Angeles.
- Proceed with the negotiation and
contract development of renewable energy resources
as proposed and selected in the LADWP's 2004 request
for proposals (RFP), and the 2005 RFP issued by
the Southern California Public Power Association
- Prepare and submit for consideration
a renewable energy surcharge to support the cost
of accelerating the RPS and to maintain the financial
integrity of LADWP's Power System during times of
natural gas price volatility.
- Plan public meetings with stakeholders,
such as neighborhood councils, homeowners, and commercial
customers, to review and discuss the proposals beginning
early next year.
LADWP will need to procure an additional 3,500 gigawatt-hours
of renewable energy by 2010 to meet the accelerated
RPS goal as well as to sustain that level in the future.
Currently, about 5.5 percent of LADWP's energy mix
comes from renewable resources, including landfill
or digester gas, small hydro, solar, and short-term
renewable power purchases.
Among the projects already planned include a 120
MW wind farm that is expected to be operational by
2007. The Pine Tree Wind project will generate 340
gigawatt-hours and boost the level of renewable energy
by about 1.4 percent.
LADWP has a long-term contract for a biomass facility
to supply 333 gigawatt-hours, or 1.4 percent of the
RPS, through conversion of organic matter to energy.
In addition, LADWP's Solar Rooftop Program will generate
an additional 24 gigawatt-hours per year by 2010.
These will add about 697 gigawatt-hours when completed.
LADWP anticipates that it will gain another 6.9 percent
of renewable energy through proposals that were submitted
in 2004. LADWP is negotiating with companies to acquire
or develop approximately 1,694 gigawatt-hours (or
395 MW) of future renewable power.
LADWP expects to receive an additional 5.4 percent,
or 1,261 gigawatt-hours, by 2009 through the SCPPA
RFP issued in August. On a long-term basis, LADWP
also plans to develop geothermal power in the Imperial
Valley through a partnership with the Imperial Valley
Irrigation District. LADWP will build new transmission
lines to access and then invest in developing the
geothermal resources. Known as the Green Path Project,
the geothermal project is still under development,
and is expected provide a sustainable, long-term renewable
energy supply for Los Angeles.