Los Angeles takes steps to transition out of coal-fired power earlier than required by state law
20 March 2013
The Los Angeles Department of Water and Power (LADWP) has taken steps to transition out of the use of coal-fired electricity earlier than mandated by California state law. Representatives of LADWP and Salt River Project have reached sufficient progress on the principle terms to sell LADWP’s stake in Navajo Generating Station for the two utilities to move forward to negotiate a definitive agreement that would end LA’s use of coal-fired power from the plant by the end of 2015.
If a final agreement can be reached and approved by each party’s governing bodies, this will end LA’s role in NGS more than four years earlier than mandated by California state law.
LADWP’s Board of Water and Power Commissioners also approved a contract that will enable LADWP to completely transition out of coal power from the Intermountain Power Plant in Delta, Utah by 2025 at the latest, with efforts to begin that transition no later than 2020.
LADWP currently owns a 21% interest in the 2250 megawatt (MW) Navajo Generating Station, receiving 477 MW of coal-fired power from the plant. Today, the Board directed staff to develop the final transaction agreement, which is expected to be approved by both parties later this summer, with consideration by the Los Angeles City Council thereafter.
Eliminating coal power from Intermountain Power Plant (IPP) was more complex than negotiating the terms of sale of Navajo because LADWP does not own any part of IPP. LADWP is one of six Southern California municipal utilities that purchase coal power from the 1,800-megawatt (MW) Intermountain Power Project located in Delta Utah under a long-term power purchase agreement that expires in 2027. IPP is owned by 23 municipal utilities in Utah and supplies power to 30 utilities in Utah and six utilities in Southern California, including LADWP. Under California law, SB 1368, electric utilities will not be allowed to import power into the state that exceeds a fossil fuel emissions cap after their current contracts expire. The emissions cap is set at the level of an efficient, combined cycle natural gas power plant.
The Board’s action approves LADWP’s portion of the amendment to the long-term power sales agreement to stop taking coal power from IPP earlier than 2027 and build a smaller natural gas plant that complies with California emission standards.
LADWP and other Southern California municipal utilities will continue to receive renewable energy from Southern Utah from the Milford Wind project; power is delivered over the same transmission line that presently also delivers power from the Intermountain Power Project. The contract provides for beginning LADWP’s transition out of coal power from IPP with the commencement of engineering, design and construction of the smaller natural gas-fired generating plant by 2020 and completely eliminating coal power from IPP no later than 2025.
The smaller plant, estimated at between 600 – 1200 megawatts, will allow LADWP and the other local municipal customers to develop more renewables and bring it to Southern California along existing transmission lines.
Working with IPP and its other customers, we have developed a win-win-win solution that is good for Southern California and good for Utah. Siting and building a new power plant and the transmission lines to deliver replacement power to Los Angeles would have cost at least twice that of rebuilding at IPP. By using an existing power plant site and existing DC Southern Transmission System for delivery of power from the future project and transforming it we will save money, time, reduce emissions by over 2/3 that of the existing plant, be able to build more renewables and bring that power home to Los Angeles.
—Aram Benyamin, LADWP Senior Assistant General Manager – Power
The amendment is subject to approval by the Los Angeles City Council, will be considered by the other municipal purchasers and is currently being ratified by the 23 Utah owners.
Eliminating coal is one leg of our transformation, but we can’t stand on that leg alone – we have to replace that power supply. That is why for several years now and for several more to come, LADWP has been taking steps to replace coal power with a combination of greatly increased commitment to energy efficiency, expanded renewable energy, and balancing that with a necessary amount of low-carbon natural gas power. All of these elements will come together to ensure a reliable, cost effective power supply transformation.
—Ronald O. Nichols, LADWP General Manager
Replacing coal fired power plants with low (25% lower) carbon 'neutral????' NG power.
Is there such thing as a carbon neutral NG power plant or clean coal power plants?
Posted by: HarveyD | 20 March 2013 at 09:10 AM
What do you want to bet that the terms of the California law also discriminate against nuclear power?
Posted by: Engineer-Poet | 20 March 2013 at 09:40 AM
Sophistry. Pure sophistry. Once LADWP does'nt own any of the powerplant they can go on buying imported power as all of California does to supply 30% of its daily needs. But now they need not look at where or how that power is produced, anymore than they do for their other imported and required 30%.
In every case it is from "surplus" or "spare" capacity from the States of Oregon, Washington, Nevada, Utah Arizona and Mexico. Invariably this power is produced by the oldest, most inefficient, and most dirty, polluting, power plants. The power is generated and sold to California at a high premium price; and the local PUCs allow this to increase profits for the local electrical utilities and to reduce the need to raise lcal rates.
Meanwhile stupid California Greenies think since California isn't generating dirty power, all is right with the world. I'm willing to bet that the LADWP will continue to get power from those Nevada generators for decades to come, but will pay a premium for it, but it will mollify and silence the the green zealots, as if it were some kind of difference.
Posted by: D | 20 March 2013 at 05:48 PM