Southern California Public Power Authority’s (SCPPA) Long Term Renewable Strategy

Jim CaldwellLADWP

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Who is SCPPA?

Member Utilities (12):

Los Angeles Anaheim Azusa

Banning Burbank Cerritos

Colton Glendale Pasadena

Riverside Vernon Imperial

Member Utilities (12):

Los Angeles Anaheim Azusa

Banning Burbank Cerritos

Colton Glendale Pasadena

Riverside Vernon Imperial

• Currently Serving:Currently Serving:

- 2 Million Residential and Commercial Customers- 2 Million Residential and Commercial Customers

- 4.6 Million People- 4.6 Million People

- 9,000 Megawatts of Electricity (15% of California- 9,000 Megawatts of Electricity (15% of California))

• Currently Serving:Currently Serving:

- 2 Million Residential and Commercial Customers- 2 Million Residential and Commercial Customers

- 4.6 Million People- 4.6 Million People

- 9,000 Megawatts of Electricity (15% of California- 9,000 Megawatts of Electricity (15% of California))

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Who is SCPPA?

Not-for-profit (public agency)

Governed by Board of Governors (one from each utility)

Provides diversity of power supplies

Optimizes energy resources through pooling

Provides aggressive demand management programs

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SCPPA Renewable Portfolio Standard

20% Renewable Portfolio Standards (RPS) Adopted by SCPPA Utilities in 2003

Currently 5% to 15% by Utility

Implementation of RPS Projects– Utility Level (Contract or Ownership)– Joint Action (SCPPA)

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Member’s Renewable Development via SCPPA

Benefits

Share Financial Risk

Diversify Resources

Interconnect to SCPPA Transmission Projects

Do not Compete for the same Projects

Cost Reduction with Shared Development Costs and Larger Projects

Allows Smaller Utilities to Cost-Effectively Participate in these Large Projects

Challenges

Requires more Coordination and Collaboration

Different Approval Timelines and Requirements

Many Utilities are CAISO Participants, While Others Are Not.

Los Angeles Department of Water and Power’s Long Term Renewable Strategy

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LADWP System

• Largest municipal utility in U.S.

• 465 sq. mile service territory: LA & Owens Valley.

• 3.9 million residents.

• 7400 MW maximum generation capacity: hydro, coal, natural gas, nuclear, and renewables.

• System Peak of 6165 MW on July 24, 2006.

• 25,000 GWH annual production.

• Extensive transmission & distribution assets.

• Largest municipal utility in U.S.

• 465 sq. mile service territory: LA & Owens Valley.

• 3.9 million residents.

• 7400 MW maximum generation capacity: hydro, coal, natural gas, nuclear, and renewables.

• System Peak of 6165 MW on July 24, 2006.

• 25,000 GWH annual production.

• Extensive transmission & distribution assets.

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Meeting LADWP’s Resource Requirements

 To meet native load requirements, LADWP: • Uses LADWP-owned generation or long-term firm energy contracts; • Enters into short-term economy purchases/sales;

• Owns or has contractual transmission rights to secure deliverability of energy;

• Provides a conservative reserve margin beyond peak demand * ; and

• Does not rely on capacity purchases or capacity contracts.

* reserve margin meets WECC requirements, and is expected to meet or exceed the CPUC resource adequacy requirements.

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LADWP’s Long-Term Planning

LADWP plans to continue to meet load growth (and new resource requirements such as renewable power) in a self-sufficient manner by:

Demand-Side Management – Aggressive Energy Efficiency and Water Conservation Programs, Green Building Program

Achieving a 20% renewable portfolio standard by 2010 – Currently 8% of Power Content. Adopted a goal of 35% renewables by 2020 -- the implementation plan for this goal is in place.

LADWP compliance = electricity delivered versus CPUC compliance of contracts in place.

Building New Renewable Generation – Pine Tree Wind Farm (under construction), Imperial Geothermal (preliminary engineering/permitting), Local Small Renew LA Projects (RFP under evaluation with Bureau of Sanitation)

Repowering old generation units with newer, cleaner, and more efficient units. Repowering of Haynes Generating Station has been authorized by Board and is in preliminary engineering.

Building Transmission – Owens Valley Renewable Corridor Upgrade, Green Path North

Purchase Agreements for Renewable Power with ownership options – Several Recent Renewable RFP’s

Significantly expanding it’s customer driven solar program beyond the minimum requirements of SB 1.

As a result, the Department will meet the Kyoto Protocol targets ahead of the international schedule and will reduce its carbon emissions significantly below 1990 levels prior to AB 32 2020 target date.

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Resource Acquisition Status for 2010

Existing RPS projects = 8% of sales (up from 3% in 2005)

Pine Tree Wind Project, Northwest Small Hydro, and solar rooftops

2004 LADWP RFP – potential acquisition of multiple projects

2005 SCPPA RFP – potential acquisition of multiple projects

2006 SCPPA RFP – potential acquisition of multiple projects

LADWP 2007 RFP – development on LADWP properties or near LADWP transmission system

MW* GWh %DWP 2010 Sales

Total New+Existing 3,122 10,647 44.0% **

*nameplate

** exceeds 20% to account for contract failure, scheduling delays, and achievement of 2020 target of 35% renewables

No transmission expansion is necessary to achieve 2010 targets, however expansion of Owens Valley corridor and Green Path North are critical for meeting 2020 goals.

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LADWP Forecast Generation Resource Mix

LADWP Capacity Mix, 2010

Eligible Renew ables

6%Coal18%

Large Hydroelectric

23%

Nuclear5%

EE & DSM3%

Natural Gas45%

4% 5%

21%

24% 46%

LADWP Capacity Mix, 2007 LADWP Energy Mix, 2007

8 %

47%

7%

Source: 2007 Power Content Label

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Energy Efficiency Program

Key Program Changes to Increase Program Participation

Increase incentive levels for the most efficient equipment and appliances.– For many items, LADWP will cover up to 100% of incremental cost of the most efficient equipment

and work directly with equipment manufacturers and vendors to promote program to their customers.

Expand list of qualifying technologies and implement programs to reach new market segments.– Includes both proven and innovative technologies and specialized programs for small business and

other hard to reach markets.

New Program Areas– CFL Distribution, Low-Income Refrigerator Exchange, City Facility Assessments

New Rebate Offers– New Construction / LEED Incentives, Custom Performance Program, Refrigeration, Small Business

Direct Install

Future Programs– Point of Sale Program, District Cooling Facility

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Customer-Driven Investments

Distributed generation

The benefits for customer installed DG include waste heat recovery, backup power and power quality.

The benefits for utility installed DG include generation, transmission and distribution infrastructure deferral, and reduction of delivery losses.

Though a large amount of future DG installations are expected to be customer initiated, LADWP will also continue to self install a variety of distributed energy resources over the planning period totaling approximately 13 MW.

In Basin Solar

Plan to meet or exceed SB 1 target of 280 MW by 2017

“Minimum requirements” of law will not allow achievement of this goal. Recently announced “comprehensive plan” to:

- Expand current customer rebates under “CSI” program and remove barriers similar to proposed legislation– Offer “Standard Offer Power Purchase Agreements” to leverage private capital– Initiate self-build program for own facilities and other City buildings– Redistribute program benefits to low income customer base– Integrate solar with energy efficiency and Green Building practices for new construction

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Planned Transmission Projects

Owens Valley Renewable Corridor (along Eastern Sierras)

– 2009: 450+ MW for wind/solar under construction, (real time monitoring to optimize loading of existing line);

– 2013: Construction of new 230 kv line plus substation upgrades to allow ~1200 MW new capacity

Green Path North Project (access to the Imperial Valley area)

– 2013-2015: 1200 to 1600 MW for wind/solar/geothermal

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AB32 Program: RPS as a Component

Actively engaged with CEC, CPUC and CARB on developing AB32 Implementation Measures

Need to realize the highest level of emission reductions in a way that preserves system reliability, and protects customers from rate shock.

Ensure that implementation strategy is consistent with the intent of AB32:– Makes environment and direct emissions reductions the focus and priority– Minimizes costs and maximizes benefits for CA’s economy.– Improves and modernizes CA’s energy infrastructure.– Maintains electric system reliability.– Maximizes additional environmental and economic co-benefits for CA.– Complements the State’s efforts to improve air quality.

Prefer direct investment in renewable energy, energy efficiency and other direct GHG reduction measures over the proposed complex market structure in the CPUC’s recent Proposed Decision .

Prevent a market based scheme that picks financial winners and losers rather than invests in emissions reductions.

All utilities should have a goal of 35% renewable by 2020 and to increase and hone investments in energy efficiency until ALL cost-effective energy efficiency and net zero energy new construction targets are reached.

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LADWP’s Participation in SCPPA

Palo Verde Nuclear Power Plant – (1981, project share 5.91%, LA’s share 67%)

Mead – Phoenix Transmission Project – (1992, project share 18.31%, LA’s share 24.8%)

Mead – Adelanto Transmission Project – (1992, project share 67.92%, LA’s share 35.7%)

Southern Transmission System – (1983, project share 100%, LA’s share 59.5%)

Anschutz Pinedale Gas Field – (2005, project share 42.5%, LA’s share 74%)

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LADWP Participation in SCPPA Cont.

Pleasant Valley Wind Energy Center, Wyoming – (2006, project share 67.5%, LA’s share 57.45.%)

Milford Wind Farm Project, Utah – (2007, project share 100%, LA’s share 92.5%)

Pebble Springs Wind Farm Project – (2007, project share 100%, LA’s share 69.6%)

Geothermal Development Project – (2007, project share 100%, LA’s share 50.0%)

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LADWP Participation in SCPPA Cont.

Demand-Side Management

– Refrigerator Replacement– Compact Fluorescent Bulbs– Small Business Lighting Program

Natural Gas Pre-pay

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Joint LADWP-SCPPA Renewable Projects to Date

RFPs Issued in 2002, 2005, 2006, and 2007

98 MW of WY Wind – Jul’06

200 MW of Utah Wind – Dec’ 2007

98.7 MW of Oregon Wind – Dec’ 2007

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LADWP Renewable Achievements to Date

RFPs Issued in 2002, 2004, 2005, and 2006

2 MW Lopez Canyon Landfill - 2002

6 MW WM Bradley, Biomass Landfill Gas - 2006

6 MW SCS Penrose, Biomass Landfill Gas -2006

13 MW Solar Photovoltaic – 2000 ~ ongoing

50 MW Powerex - Small Hydro - 2007

120 MW Pine Tree Wind Farm – June 2009

150 MW Pine Canyon Wind Farm – April 2013

The Renewable Portfolio Standard and AB 32

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The Renewable Portfolio Standard and AB32

A strong RPS (33% or 35%) complements AB32.

The City of Los Angeles is already implementing the Mayor’s Green LA Plan which establishes the following Goals:

– LADWP to reach 20% Renewables by 2010;– LADWP to reach 35% Renewables by 2020.– City-wide GHG emissions must be 35% below 1990 levels by 2030.

Any form of AB32 implementation needs to allow municipal utilities to retain the resources to continue to make these investments in direct emission reductions.