LADWP Diversifies Its Renewable Energy to Add 50 MW

As part of its commitment to supply 20 percent of its retail energy from renewable energy sources by 2010, the Los Angeles Department of Water and Power (LA Water & Power) Board of Water and Power Commissioners has approved an agreement to purchase 50 megawatts (MW) of renewable energy annually for a five-year period.

This power purchase agreement (PPA) will enable Mayor Antonio Villaraigosa to meet an additional 2% of his annual Renewable Portfolio Standard (RPS) acquisition goal. The agreement between LA Water & Power and Powerex Corp. provides for the purchase of 438,000 megawatt-hours (MWh) of renewable energy annually. During the first year, LA Water & Power will purchase renewable energy from several small hydroelectric generating facilities in the Pacific Northwest. Over subsequent years, LA Water & Power may receive other types of renewable energy — including small hydro, biomass, landfill gas and wind — through the agreement from generating facilities located in the Pacific Northwest. The PPA, which requires approval by the Los Angeles City Council, indicates that LA Water & Power expects to pay approximately $75 per MWh, for an annualized cost not to exceed $39 million in fiscal years 2006-07 through 2011-12. A PPA between LA Water & Power and PPM Energy, Inc., providing for the purchase of 82 MW — or 234,000 MWh — of wind power annually, received approval from the City Council on August 15. Under that agreement, which went into effect September 1, LA Water & Power will purchase the wind power from the Pleasant Valley Wind Energy Center (Uinta County, Wyoming). LA Water & Power officials said the Powerex and PPM agreements increase the agency’s renewable energy to more than 8% of its energy supply portfolio. Other renewable energy projects already in the works are the 120-MW Pine Tree Wind Project located in the Tehachapi area, and the Green Path transmission system, a system of transmission projects designed to gain access to geothermal and solar resources located in the Salton Sea area, northeast of San Diego. In addition, LA Water & Power is purchasing close to 82,200 MWh of renewable power from Penrose and Bradley landfills under PPAs approved last year.
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