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LOS ANGELES, California, US, January 11, 2006
(Refocus Weekly)
The municipal power utility in Los Angeles has
taken the first step to increase its supply from renewable energy
sources to 20% of the city's power mix by 2010, seven years ahead of
the renewable portfolio standard goal adopted by city council last
year.
Mary Nichols, president of commissioners for the Department of
Water & Power (LADWP), asked management to start meeting with local
groups, homeowners, companies and other stakeholders to discuss the
accelerated RPS goals. The accelerated plan, which was presented to
the board on December 13, outlines how LADWP would diversify its
retail energy mix to meet the 20% goal by procuring green power
resources to own or to purchase.
The renewable energy resources will include a mix of wind,
geothermal, biomass, landfill gas, small hydro 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,” says Nichols. “We are all concerned about
potential requirements to cut emissions of CO2 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.”
To achieve the accelerated RPS goal, utility management has six
months to update the ten-year Integrated Resource Plan to
incorporate a 20% by 2010 RPS, develop a timeline to reduce GHG
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. It must also proceed with negotiation and contract
development of green power resources as proposed and selected in the
LADWP's 2004 request for proposals and the 2005 RFP issued by the
Southern California Public Power Association.
Staff were also directed to prepare and submit 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, and to plan public meetings
with stakeholders to review and discuss the proposals.
“LADWP is prepared to move forward with an accelerated RPS,” says
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.”
LADWP must procure an additional 3,500 GWh of renewable energy by
2010 to meet the accelerated RPS goal, as well as to sustain that
level in the future. Currently, 5.5% of LADWP's energy comes from
renewables, including landfill or digester gas, small hydro, solar,
and short-term renewable power purchases.
Among the projects already planned are a 120 MW windfarm that will
be operational by next year. The Pine Tree facility will generate
340 GWh and boost the level of renewable energy by 1.4%.
The utility has a long-term contract for a biomass facility to
supply 333 GWh, or 1.4% of the RPS, through conversion of organic
matter to energy. Its Solar Rooftop Program will generate an
additional 24 GWh per year by 2010, which will add 697 GWh when
completed.
LADWP anticipates that it will gain another 6.9% of green power
through proposals that were submitted in 2004. It is negotiating
with companies to acquire or develop 1,694 GWh (395 MW of capacity)
of future green power.
LADWP expects to receive an additional 5.4%, or 1,261 GWh, by 2009
through a RFP issued in August. On a long-term basis, it plans to
develop geothermal power in the Imperial Valley through a
partnership with the irrigation district, in which LADWP will build
new transmission lines to access geothermal resources. Known as the
Green Path Project, the geothermal project is under development, and
is expected provide a long-term renewable energy supply for Los
Angeles.
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