LA’s Municipality Approves 82 MW Wind Power Purchase

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 (LADWP) Board of Water and Power Commissioners approved a long-term power purchase agreement (PPA) to buy 82 megawatts (MW) of wind power annually over the next 16 years.

That amount will add approximately 1 percent to the City’s renewable energy supply, increasing the generation portfolio to approximately 6.5 percent renewable energy. The agreement between the LADWP and PPM Energy, Inc. provides for the purchase of 234,000 megawatt-hours (MWh) of wind power annually, enough power to serve approximately 39,000 homes each year. LADWP will purchase the wind power from the Pleasant Valley Wind Energy Center, located in Uinta County, Wyo., starting July 1 pending approval by the City Council. LADWP has agreed to pay a fixed amount of $63/MWh for the term of the agreement. Over the 16-year period, LADWP estimates that the energy delivered will cost between $236 million and $280 million. “Commendations to the Board of Water and Power Commissioners for moving forward aggressively in meeting our renewable energy goal of 20 percent by 2010,” said Mayor Antonio R. Villaraigosa. The Mayor added, “Ultimately, our goal for DWP is to own renewable generation, but this agreement is a jump start on the path to a future in which the City of Los Angeles is the cleanest and greenest big city in the country.” Ron Deaton, LADWP General Manager, said he expects to bring two additional renewable wind energy agreements with PPM Energy for Board and City Council approval in the near future. The second two projects will increase the City’s renewable energy portfolio by another 1.2 percent. “We are steadily building the foundation of a very strong renewable energy portfolio that is diversified by location and technology,” Deaton said. “Our renewable energy portfolio will help reduce the need for traditional fossil fuel energy but do so in a way that maintains reliability for the citizens of Los Angeles.” All three agreements stem from renewable energy proposals that were competitively bid with the Southern California Public Power Authority (SCPPA). SCPPA participants consist of other local public power utilities including the cities of Anaheim, Azusa, Banning, Burbank, Cerritos, Colton, Glendale, and Pasadena.
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