Public Power - November 2008 - (Page 34)

Getting to 20 by ’10 The Los Angeles Department of Water & Power is moving aggressively to meet 20 percent of its energy needs from renewables by 2010. BY ALICE CLAMP Two years from now,ofthe Los Angeles Department Water and Power expects to meet 20 percent of its energy needs from renewables. That’s an ambitious goal, set by the city’s board of water and power commissioners in 2005. Originally, the board had tied the 20 percent to a 2017 deadline. But rapidly rising natural gas prices—and the attendant concern about the impact on electricity rates— prompted the board to push more aggressively for a portfolio of renewable options. As the result of a 2007 request for proposals, the department short-listed 16 of 59 proposed renewable projects. Another RFP earlier this year has resulted in a short list of 10 projects. “We’re in a dynamic process, as we vet and winnow projects to see what survives,” said David Nahai, LADWP’s CEO and general manager. In August, the department was meeting 8 percent of energy needs from renewables—200 MW from generation owned by LADWP and 144 MW from power purchase agreements. In addition, renewable projects totaling 668 MW were under construction. The department’s portfolio of renewables will embrace solar, wind, geothermal and biomass. Of these, wind is clearly going to be a major contributor, said Nahai. At the beginning of this year, the city broke ground for the 120-MW Pine Tree Wind Project, which will be the largest municipally owned and operated 34 NOVEMBER-DECEMBER 2008 Saving Energy, Money and the Environment “Looking to the future, we have to pursue a combination of strategies—energy efficiency, demand-side management, green buildings and renewables—to address changing patterns of energy use,” said David Nahai, CEO and general manager of the Los Angeles Department of Water and Power. To this end, the utility offers a wide range of programs and rebates to its customers. Among them is the Consumer Rebate Program, which offers cash rebates to customers who buy qualifying appliances. There’s also a Refrigerator Recycling Program, which pays $35 to consumers who give up their old, inefficient refrigerators to be recycled in an environmentally friendly manner. LADWP customers can sign up for the utility’s Green Power Program, which adds .03 cents per kilowatt-hour to the bills of those who want to demonstrate their support for renewables. The additional cost is used to help the LADWP increase its portfolio of renewable energy. Utility customers can reduce their electricity bills by taking advantage of the LADWP’s give-away of 2.5 million compact fluorescent lightbulbs. Under the LADWP’s direct install program, small businesses can receive $2,500 in lighting upgrades. As the LADWP expands its renewable energy resources, it is mindful of customers less able to fend for themselves, said Nahai. The utility has expanded its low-income and lifeline discount programs. One, the Low Income Refrigerator Exchange Program, provides for the replacement of old, energy-wasting refrigerators to qualifying customers. The utility has already replaced more than 33,000 refrigerators under this program. To help Los Angeles become the greenest city in the country, the LADWP offers cash incentives of up to $250,000 to projects that meet or exceed the U.S. Green Buildings Leadership in Energy and Environmental Design (LEED) Silver Standard. wind farm in the country. When it begins operating in 2009, the wind farm will boost the share of renewables in LADWP’s energy portfolio to 13 percent. And the Pine Tree project is just the beginning. The city recently bought an additional 12,000 acres of land for a second phase—the Pine Canyon Wind Project. In addition, LADWP is negotiating the purchase of another 20,000 acres for even greater wind resources, said Nahai. The LADWP relies on power purchase agreements (PPAs) as a bridge to expanded wind resources. Under a 20-year contract negotiated by the Southern California Public Power Authority on behalf of Los Angeles, Burbank and Pasadena, for example, the LADWP will buy 185 MW from a 200-MW wind farm in Utah. Under the agreement, Los Angeles and the two other cities can acquire ownership of the wind farm after 10 years. The Southern California Public Power Authority negotiated another PPA earlier this year for the output from a wind farm in Oregon. The LADWP will buy 68.7 MW of the 99-MW facility. And in August, the LADWP’s board of commissioners approved a 15-year PPA for 72 MW of energy from an Oregon wind farm. Although solar is a key renewable, it has not been as prominent in LADWP’s portfolio as the utility would like, admits Nahai. But he expects that to change. The utility’s current solar photovoltaic (PV) rooftop program, which offers one of the largest incentive programs in the country, already generates PUBLIC POWER

Table of Contents Feed for the Digital Edition of Public Power - November 2008

Public Power - November 2008 Contents Perspective 10 Questions Capturing Knowledge Before It Retires Jackson’s GIS Search Keeping a Job Journal Japan Tackles the Kyoto Protocol Getting to 20 by 10 Damless Hydro Power Earthquake: The Hidden Disaster For Engineers Safety For Governing Boards DEED Hometown Connections Parting Shot

Public Power - November 2008

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