Los Angeles Approves Two Renewable Energy Agreements

The city of Los Angeles took a step toward increasing its renewable energy power supply when the City Council approved two agreements that will each provide 25 megawatts (MW) of renewable power, enabling LADWP to meet an additional 2% of Mayor Antonio Villaraigosa’s goal to increase the City’s renewable power supply to 20% by 2010.

The power purchase agreements (PPAs) between LADWP and Powerex Corp., which bring LADWP’s renewable energy supply to 8% of its power generation portfolio, provide for the purchase of a firm 50 MW, or 438,000 megawatt-hours, of renewable energy annually. The PPAs go into effect April 1. “This is an excellent opportunity to immediately increase the amount of clean, renewable energy for the City of Los Angeles,” said H. David Nahai, president of the Board of Water and Power Commissioners. “LADWP is taking a multi-pronged approach to meeting its RPS commitment of 20% by 2010. The agency is utilizing power purchase agreements such as this as a bridge to increasing our supply of renewable energy in the short term, while pursuing plans to build renewable power generation for ownership over the long term,” he said. During the first year, LADWP will purchase renewable energy from several small hydroelectric generating facilities in the Pacific Northwest. Over subsequent years LADWP 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. Through the agreements, LADWP will pay a fixed price, based on a natural gas indexed formula, per megawatt-hour (MWh), for an annualized cost not to exceed $39 million in fiscal years 2006-07 through 2011-12. The energy will be delivered to LADWP at the Nevada-Oregon border and shipped to Los Angeles via the Pacific DC Intertie — a north-south transmission line with capacity owned by LADWP — so that no additional transmission infrastructure or transportation will need to be built.
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