L.A. S Clean Energy Future

Transcription

1 L.A. S Clean Energy Future Eliminating Coal from L.A. s Power Supply March

2 L.A. s Power supply was built over the last 100 years. 2

3 Over the next 15 years, LADWP will replace over 70% of it. 3

4 And replace & modernize much of the grid infrastructure used to reliably deliver power to our customers. 4

5 No other utility in the country is undertaking such a significant transformation. 5

6 L.A. s Clean Energy Future. A future with more efficient use of energy, more renewable energy, and zero coal, is being built right now through a complete transformation of LADWP s power supply. 6

7 Our Objective: To create a reliable, long term and sustainable clean energy future for L.A., while complying with State mandates in a cost effective manner. 7

8 The Result: Creating a Clean Energy Future for L.A. LADWP s CO2 emissions are already 21% below 1990 level, and expected to be 59% below 1990 level in In 2025, we will have reduced CO2 emissions by 10.6 million metric tons, compared to the 1990 baseline level, equivalent to removing 2 million cars from 8 the highway.

9 LADWP is making unprecedented investments in: Energy Efficiency Renewable Energy Rebuilding Local Power Plants Power Reliability All are essential parts of eliminating and replacing coal power and creating a clean energy future for L.A. 9

10 Our future power supply is coal free Present Future 10% 10

11 Our Goal: Completely eliminate LADWP s use of coal power as quickly and cost effectively as possible in a way that ensures continued reliability of our power supply. 11

12 L.A. s coal power comes from two power plants: Navajo Generating Station Location: Page, AZ Capacity: 2,250 megawatts Owners: U.S. Bureau of Reclamation 24% Salt River Project 22% LADWP 21% (477 MW) Arizona Public Service 14% Nevada Energy 11% Tucson Electric 8% Intermountain Power Project Location: Delta, UT Capacity: 1,800 megawatts Customers: 6 SoCal and 30 Utah power purchasers LADWP s share: 48% 66% of output, 875 1,200 MW Owners: 23 Utah municipal utilities Transmission: 500 miles of lines connecting to SoCal 12

13 Right now Coal is 39% of our base load (24/7) power supply. How will we replace it? Integrated Resource Strategy: Increased Energy Efficiency and Renewable Energy. Clean and efficient natural gas is used to maintain reliability. Navajo: 477 MW IPP: MW 13

14 Each element plays a vital role in maintaining a reliable future energy supply for LA. 14

15 Wind output varies every day, throughout the day. Cleaner burning natural gas is critical as a bridge fuel to ensure reliability. 15

16 Solar output also varies, making base load power critical to maintain reliability. 16

17 Eliminating COAL power from Navajo Generating Station. LADWP must stop receiving coal power from Navajo by LADWP made strategic decision to divest of its share by Early exit avoids financial risk; ensures customers receive maximum value. Currently we are in negotiations for LADWP to sell its 21% share of Navajo to Salt River Project (SRP), which would end LA receiving coal power from Navajo by December 31,

18 IPP is different. Exiting IPP before contract expiration requires a collaborative effort. LADWP does not own any part of the plant. We are customers along with 5 other So Cal municipal utilities and 30 Utah power purchasers. LADWP cannot act unilaterally any change to the Power Sales Contract requires approval of all SoCal and Utah participants. All 6 SoCal cities depend on IPP for base load coal power and are contractually obligated to buy it through

19 Unable to renew current contracts with IPP beyond 2027, LADWP and local cities faced a choice... Stay with IPP through 2027 and site, permit and build a costly new plant and transmission lines elsewhere OR modernize and rebuild IPP into a new plant that meets CA emissions standards. Working with all IPP partners, we have achieved consensus on a win win solution that s good for Utah and good for SoCal municipalities: Stay at IPP and build a small, clean natural gas power plant and free up transmission capacity to develop more renewable energy. 19

20 Why build at IPP? Return on investment: LADWP customers invested billions in transmission and the plant itself. 490 miles of transmission (STS) Carries 400 MW in renewable energy from Utah to SoCal 2,400 megawatt transmission capacity $11.5 billion in today s dollars IPP Cost effective resource sharing with local Utah utilities Uses existing transmission lines rather than building new and frees up room to develop and bring more renewables to SoCal. Reduces emissions by over 66% 20

21 Key steps to eliminating coal from IPP. Amend UT law to allow non coal production at IPP Amend IPA organizational agreement Amend existing power sales contract Completed Completed Underway Receive renewal power sales contracts Anticipated June 2013 Complete new power sales contracts Anticipated by end of 2013 Calif. Energy Commission approval 2020 Timeframe 21

22 IPP Contract Amendment Provides Fuel will change from Coal to Natural Gas at least by July 1, 2025; timing for earlier conversion determined by participants Plant size will reduce by at least 1/3; allowing room for new renewable sources to be delivered Allows size of replacement to be reduced further or altered as long as it complies with CEC regulations Provides funds for decommissioning coal units Provides a future renewal contract that gives access to the site and transmission until

23 A Clean Energy & Coal Free LADWP Navajo Generating Station: LADWP will end Coal power from Navajo GS by Dec Intermountain Power Plant Transition will begin by 2020 and be completed no later than

24 Questions? 24