L.A.’SCleanEnergyFutureEliminatingCoalfromL.A.’sPowerSupplyMarch20131L.A.’sPowersupplywasbuiltoverthelast100years.2Overthenext15years,LADWPwillreplaceover70%ofit.3Andreplace&modernizemuchofthegridinfrastructureusedtoreliablydeliverpowertoourcustomers.4Nootherutilityinthecountryisundertakingsuchasignificanttransformation.5L.A.’sCleanEnergyFuture.Afuturewithmoreefficientuseofenergy,morerenewableenergy,andzerocoal,isbeingbuiltrightnowthroughacompletetransformationofLADWP’spowersupply.6OurObjective:Tocreateareliable,long‐termandsustainablecleanenergyfutureforL.A.,whilecomplyingwithStatemandatesinacosteffectivemanner.7TheResult:CreatingaCleanEnergyFutureforL.A.LADWP’sCO2emissionsarealready21%below1990level,andexpectedtobe59%below1990levelin2025.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 fromthe highway.8LADWPismakingunprecedentedinvestmentsin:EnergyEfficiencyRenewableEnergyRebuildingLocalPowerPlantsPowerReliabilityAllareessentialpartsofeliminatingandreplacingcoalpowerandcreatingacleanenergyfutureforL.A.9OurfuturepowersupplyiscoalfreePresentFuture10%10OurGoal:CompletelyeliminateLADWP’suseofcoalpowerasquicklyandcosteffectivelyaspossibleinawaythatensurescontinuedreliabilityofourpowersupply.11L.A.’scoalpowercomesfromtwopowerplants:NavajoGeneratingStationLocation:Page,AZCapacity:2,250megawattsOwners:U.S.BureauofReclamation– 24%SaltRiverProject– 22%LADWP– 21%(477MW)ArizonaPublicService– 14%NevadaEnergy– 11%TucsonElectric‐8%IntermountainPowerProjectLocation:Delta,UTCapacity:1,800megawattsCustomers:6SoCaland30UtahpowerpurchasersLADWP’sshare:48%‐66%ofoutput,875– 1,200MWOwners:23UtahmunicipalutilitiesTransmission:500milesoflinesconnectingtoSoCal12RightnowCoalis39%ofourbaseload(24/7)powersupply.Howwillwereplaceit?IntegratedResourceStrategy:IncreasedEnergyEfficiencyandRenewableEnergy.Cleanandefficientnaturalgasisusedtomaintainreliability.Navajo: 477 MWIPP: 875-1200 MW13EachelementplaysavitalroleinmaintainingareliablefutureenergysupplyforLA.14Windoutputvarieseveryday,throughouttheday.Cleanerburningnaturalgasiscriticalasabridgefueltoensurereliability.15Solaroutputalsovaries,makingbaseloadpowercriticaltomaintainreliability.16EliminatingCOALpowerfromNavajoGeneratingStation.LADWPmuststopreceivingcoalpowerfromNavajoby2019.LADWPmadestrategicdecisiontodivestofitsshareby2015.Earlyexitavoidsfinancialrisk;ensurescustomersreceivemaximumvalue.CurrentlyweareinnegotiationsforLADWPtosellits21%shareofNavajotoSaltRiverProject(SRP),whichwouldendLAreceivingcoalpowerfromNavajobyDecember31,201517IPPisdifferent.ExitingIPPbeforecontractexpirationrequiresacollaborativeeffort.LADWPdoesnotownanypartoftheplant.Wearecustomersalongwith5otherSoCalmunicipalutilitiesand30Utahpowerpurchasers.LADWPcannotactunilaterally– anychangetothePowerSalesContractrequiresapprovalofallSoCalandUtahparticipants.All6SoCalcitiesdependonIPPforbaseloadcoalpowerandarecontractuallyobligatedtobuyitthrough2027.18UnabletorenewcurrentcontractswithIPPbeyond2027,LADWPandlocalcitiesfacedachoice...StaywithIPPthrough2027andsite,permitandbuildacostlynewplantandtransmissionlineselsewhereOR modernizeandrebuildIPPintoanewplantthatmeetsCAemissionsstandards.WorkingwithallIPPpartners,wehaveachievedconsensusonawin‐winsolutionthat’sgoodforUtahandgoodforSoCalmunicipalities:StayatIPPandbuildasmall,cleannaturalgaspowerplantandfreeuptransmissioncapacitytodevelopmorerenewableenergy.19WhybuildatIPP?Returnoninvestment:LADWPcustomersinvestedbillionsintransmissionandtheplantitself.‐490milesoftransmission(STS)‐Carries400MWinrenewableenergyfromUtahtoSoCal‐2,400megawatttransmissioncapacity‐$11.5billionintoday’sdollarsCost‐effectiveresourcesharingwithlocalUtahutilitiesUsesexistingtransmissionlinesratherthanbuildingnewandfreesuproomtodevelopandbringmorerenewablestoSoCal.Reducesemissionsbyover66%IPP20AmendUTlawtoallownon‐coalproductionatIPPAmendIPAorganizationalagreementAmendexistingpowersalescontractReceiverenewalpowersalescontractsCompletenewpowersalescontractsCalif.EnergyCommissionapprovalKeystepstoeliminatingcoalfromIPP.CompletedCompletedUnderwayAnticipatedJune 20132020 TimeframeAnticipated byend of 201321IPPContractAmendmentProvidesFuelwillchangefromCoaltoNaturalGasatleastbyJuly1,2025;timingforearlierconversiondeterminedbyparticipantsPlantsizewillreducebyatleast1/3;allowingroomfornewrenewablesourcestobedeliveredAllowssizeofreplacementtobereducedfurtheroralteredaslongasitcomplieswithCECregulationsProvidesfundsfordecommissioningcoalunitsProvidesafuturerenewalcontractthatgivesaccesstothesiteandtransmissionuntil207722ACleanEnergy&CoalFreeLADWPNavajoGeneratingStation:LADWPwillendCoalpowerfromNavajoGSbyDec2015.IntermountainPowerPlantTransitionwillbeginby2020andbecompletednolaterthan2025.23Questions?24