Los Angeles Moves to Meet RPS Requirement

New contracts will allow Los Angeles to meet a large portion of their city-wide renewable energy requirements with landfill-gas-to-energy projects.

The Los Angeles Department of Water and Power (LADWP) Board of Commissioners approved two long-term purchase agreements to buy 81,843 MWh of renewable energy — enough to provide power for nearly 10,000 homes generated by facilities that use landfill gas-to-energy technology. The contracts will be effective upon approval by the City Council. The Board’s action approved a seven-year agreement to purchase renewable power from the Penrose Landfill Gas Conversion’s existing landfill gas plant at the Penrose Landfill in Los Angeles. The purchase agreement guarantees delivery of 45,421 MWh annually. The estimated cost of renewable energy purchases over the seven years is approximately $19.4 million up to $23.4 million, based on the maximum generation capability. The second contract is a 10-year renewable power purchase agreement with WM Solutions Inc., which owns and operates an existing power plant that will utilize gas-to-energy technology to sell renewable power to LADWP. Under the agreement, LADWP will purchase at least 36,422 MWhs annually of renewable energy from WM’s landfill gas plant, located at Bradley Landfill, at a cost of $19.7 million to approximately $29 million at the maximum generation capability. The agreements are the first of many contracts expected to be awarded through a request for proposals (RFP) to meet the city’s renewable energy goals, as set forth in the LADWP’s Renewable Portfolio Standard policy adopted in May 2005. “These are strong, economical purchase agreements that will boost the supply of renewable power for Los Angeles, making efficient use of existing transmission lines and landfill-to-gas technology located here in the city,” said LADWP General Manager Ronald F. Deaton. LADWP will continue to evaluate proposals submitted through the RFP, which included wind, geothermal, landfill gas, biomass, and small hydroelectric power resources. As described in the RFP, the department is seeking to substantially increase its share of renewable energy sales through development and ownership of projects, and through mid- to long-term power purchase agreements.
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