DWP 2010 Power Integrated Resource Plan - LA Differentiated

2010 POWER INTEGRATED RESOURCE PLAN
IN BRIEF
Planning L.A.’s Energy Future
The Los Angeles Department of Water and Power (LADWP) has
completed the final draft of its 2010 Power Integrated Resource
Plan (IRP). The IRP is a long-term strategic energy plan
designed to ensure that the city’s future energy needs are met,
regulatory requirements are satisfied, and environmental policy
goals are achieved.
OBJECTIVES
The 2010 IRP lays out alternative strategies for increasing
renewable energy and reducing greenhouse gas (GHG)
emissions, while maintaining power reliability, meeting state
and federal regulations, and minimizing the financial impact on
ratepayers. The plan is guided by the following objectives:
• Maintain a high level of electric service reliability
• Maintain competitive rates
• Exercise environmental stewardship
BACKGROUND
The IRP is used by electric utilities to analyze the costs,
benefits, and risks of all available energy resources. The goal
is to identify a portfolio of resources that meets future needs
at the lowest cost and risk consistent with the utility’s goals
and objectives. The IRP is an important planning process for
electric utilities, and many states and regulatory agencies
require development of an IRP prior to approval of procurement
programs or electric rate increases. LADWP has prepared
previous IRP reports in 2000 and 2007.
PUBLIC OUTREACH
A major goal of the IRP was ensuring that the public had ample
opportunity to provide comments on the 2010 Draft Power
Integrated Resource Plan. Toward this end, LADWP launched
an extensive public outreach campaign to gather feedback
on the draft IRP. Public input was received during a series of
regional meetings in August and September 2010 as well as
through an online survey posted on a dedicated website,
www.LAPowerPlan.org. LADWP also briefed key stakeholder
groups, including business customers, environmental groups,
and Neighborhood Councils, as well as elected officials and
members of their staffs.
PUBLIC INPUT
Several themes emerged from the comments and ideas LADWP
received through its public outreach program. They include:
• Maximizing energy efficiency and conservation
• Investing in grid reliability
• Eliminating coal from LADWP’s energy portfolio
• Expanding local solar generation
• Clarifying costs of IRP implementation and potential
impacts to ratepayers
• Reducing environmental impacts
• Strengthening proactive public information and
open communication
NOVEMBER 2010

RECOMMENDED ACTIONS
As a result of the public outreach, LADWP developed a series
of high-level recommendations that attempt to respond to
the public’s biggest concerns in the IRP goals and objectives.
Following are the high-level recommendations, along with some
of the specific actions that will be taken and outcomes that will
result.
• Invest in grid reliability to reduce the number and length
of power outages. This recommendation identifies such
performance metrics as replacing 92,000 power poles and
45,600 electric transformers over the next 20 years.
• Modernize power plants to improve reliability and
integration of renewable energy. Action items include
building six quick-start generating units at Haynes
Generating Station, developing ultra-efficient generating
units at Scattergood Generating Station, and replacing
ocean water cooling systems with dry cooling. This action
will reduce the use of ocean water by 82% – enough to fill an
Olympic-sized pool 2,400 times every day.
• Transition away from coal earlier than required to reduce
GHG emissions. Specifically, the IRP recommends divesting
ownership in Navajo Generating Station in Nevada by 2014,
which would reduce LADWP’s GHG emissions by 10.5 million
metric tons (MMT)—roughly the same as removing 350,000
cars from the road.
• Invest in Smart Grid technology such as two-way
automated meters, and automated distribution and
transmission lines. Through Smart Grid investments,
LADWP customers will be able to better manage their
energy use. Such investments also improve reliability,
provide instantaneous outage information and increase
efficiency.
POTENTIAL RATE IMPACTS
LADWP estimates that the recommended major initiatives
will cost approximately $23 billion over the next 10 years. The
total costs for these initiatives along with basic generation,
transmission and distribution system is expected to be about
$45 billion through 2020. Corresponding electric rates are
estimated to increase about 5% to 8% per year for the next
five years, and average 3% to 4% per year over 20 years.
NEXT STEPS
Recognizing that the IRP is an ongoing public process, LADWP
will update the document yearly and hold public outreach
meetings to produce a new version every two years.
The full IRP document is posted online at www.LAPowerPlan.org.
A summary of the public comments heard during the public
outreach process is also posted at www.LAPowerPlan.org.
• Increase renewable energy to 33% of LADWP retail power
sales by 2020, reducing LADWP’s GHG emissions by 19
percent.
• Expand local solar generation to 40% to 50% of the city’s
total solar output. Efforts include building solar on City
properties and establishing a feed-in tariff program. This
recommendation will produce 300 to 360 megawatts (MW)
of solar—enough to power 100,000 homes—boost the solar
industry and jobs in Los Angeles, improve reliability and
reduce grid congestion during hours of highest energy use.
GHG emissions will decline by at
least 38% over the next 20 years
as a result of all IRP actions.
• Reduce energy use by 10% through energy efficiency and
conservation programs, such as rebates for energy-saving
appliances and public education. LADWP expects to save
and additional 1,960 gigawatt-hours (GWH) of electricity
by 2020 through these efforts. That equates to removing
212,000 cars from the road or 327,000 homes from the
grid. It also means avoiding the need for 780 MW of new
generation, transmission, and distribution facilities.
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