SCPPA Meeting the Carbon Challenge. Southern California Public Power Authority Manny Robledo September 25, 2007

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1 SCPPA Meeting the Carbon Challenge Southern California Public Power Authority Manny Robledo September 25,

2 Who is SCPPA? Member Utilities (12): Los Angeles Anaheim Azusa Banning Burbank Cerritos Colton Glendale Pasadena Riverside Vernon Imperial Currently Serving: - 2 Million Residential and Commercial Customers Million People - 9,000 Megawatts of Electricity (15% of California) 2

3 SCPPA Functions Traditional Projects Generation: Nuclear, Hydro, Coal, & Gas Transmission: Utah, Arizona, & Nevada Planning: Resource Adequacy & Strategic Risk Management Carbon Related Projects Energy Efficiency: Joint Programs Renewables: Joint Procurement Natural Gas: Reserves & Prepayment Compliance: GHG, EE, RPS, CSI Member Benefits Low Cost: Tax Exempt Financing & Operating Expense Shared Risks & Rewards: Development & Ownership Resource Diversity: Smaller Shares of More Projects 3

4 SCPPA Projects 4

5 AB 32 Carbon Challenge SCPPA Fuel Mix 1,300lb CO2/MWh 46% Coal; 33% Gas; 14% Hydro/Nuke; 8% Renew 1990 Level (equivalent for 2020 per CEC) 519lb CO2/MWh (60% reduction) 10% Coal; 43% Gas; 14% Hydro/Nuke; 33% Renew 33% Reduction 872lb CO2/MWh 30% Coal; 33% Gas; 14% Hydro/Nuke; 20% Renew 5

6 Energy Efficiency First AB Set & Monitor Targets SB Loading Order & Reporting Joint Program Development Refrigerator Recycling (EPA and CFL Procurement & Services RFP Small Business Direct Install RFP A/C Check Me & Tune-up Program Ice Bear Thermal Energy Storage Gridpoint Battery Demand Response 6

7 Renewable Portfolio Standards 20% Renewable Portfolio Standards (RPS) by 2017 for most SCPPA Utilities LA 20% by 2010 and 35% by 2020 Banning, Burbank, and Riverside 33% by 2020 Implementation of RPS Utility Level (Contract or Ownership) Joint Action through SCPPA 7

8 Why Renewables? Benefits Clean (No NOx, SOx) Climate (Net Zero GHG) Sustainable (No Depletion) Secure (Domestic Resource) Jobs (Capture, R&D) Price Stability (No Volatility) Challenges Limited Supply Near Load Transmission Siting (NIMBY) Reliability (Weather Dependent) Technology Risk (Capital Intensive) Environmental (Habitat, Aesthetics, Large Land Usage) Permitting (parochial interests of permitting agencies) 8

9 High Winds Energy Center 30 MW of Firmed Wind SCPPA Participants - Anaheim, Azusa, Colton, Glendale, and Pasadena 20 year Contract - PPM Energy Firmed Wind Product RECs Received as Produced 10 MW Firm Energy Received 7x24 Annual True-up of RECs and Energy Online September

10 Chiquita Landfill Gas to Energy Project 8 MW Baseload Energy in Southern CA Option for Additional 8 MW SCPPA Participants Burbank & Pasadena 20 yr Contract with Ameresco Signed Mar 04 Expected Online Oct 08 10

11 Ormat Geothermal Energy Project 10 MW Baseload Energy in Imperial Valley, California Import into CAISO at Mirage SCPPA Participants Anaheim, Banning, Glendale, Pasadena 20 yr Contract with Ormat Technologies Online Jan 06 11

12 Wyoming Wind Energy Center 98 MW of Intermittent Wind Energy SCPPA Participants Los Angeles, Burbank, & Glendale 16 year Contract with PPM Energy Energy Received in Mona, Utah and Delivered to California via the Southern Transmission System Online July

13 West Covina and Tulare Landfill Gas to Energy Projects 8 MW Baseload from West Covina, CA 1.5 MW Baseload Energy from Tulare, CA SCPPA Participant Pasadena 10 yr PPA with Minnesota Methane Online Jan 07 13

14 Current Renewable Activities 200 MW Utah Wind (Prepay w/ebo) 100 MW Oregon Wind (PPA) 50 MW Imperial Geothermal (Owned) 47 MW Small Hydro (PPA) 30 MW California Biomass (Wood Waste) Architectural Wind Urban Biomass to Energy New RFP to be Issued in Oct 08 14

15 Transmission Leadership Green Path Transmission 1,200 MW from Imperial Valley to LA Built Primarily to Import Geothermal Energy Southern Transmission System Upgrade 480 MW Upgrade of Line from Utah to LA Built Primarily to Import Wind Energy SCPPA and it s Member Utilities Take a Proactive Approach to Transmission for Renewable Energy 15

16 Natural Gas Fuel = Less GHG Clean & Efficient Natural Gas Energy 2,100 MW Combined Cycle Re-powering Fully Controlled Emissions Lowest Fossil Fueled Carbon Footprint Natural Gas Reserve Acquisitions Stabilize Energy Prices Gas Reserve and Prepay Projects Gas Prepayment to Reduce Fuel Costs 16

17 CO2 Sequestration Study SCPPA RFP Issued 6/12/07 Intermountain Power Project (1,900 MW) Investigate Methods to Capture or Reduce CO2 Emissions from Coal Fired Units 1 and 2 The report will include the expected reduction in CO2 and a detailed description of the technology proposed 17

18 Conclusions The AB 32 Carbon Challenge can be Achieved by Coalburning SCPPA Utilities through a 33% Reduction in Coal Usage, Increasing Renewable Energy to 20%, Maintaining Nuclear and Hydro Levels, and Supplying the Difference from Natural Gas. 872 lb CO2/MWh, a 33% Reduction from 1,300 lb CO2/MWh, should be Achieved with the Following Fuel Mix: 30% Coal; 33% Gas; 14% Hydro/Nuke; 20% Renewables. Energy Efficiency will Reduce Greenhouse Gas Emissions. SCPPA Utilities are Successfully Implementing 20% Renewable Portfolio Standards, but certain SCPPA members have set goals of 20% by 2010 or 33% by Joint Action Model Works Well for Renewable Energy Procurement. SCPPA Providing Leadership in Transmission SCPPA is Exploring CO2 Sequestration at Intermountain Power Project. 18