L.A.’S Clean Energy Fu

Eliminating Coal from

L.A.’s Power Supply

March 2013
L.A.’s Power supply was built ove

last 100 years.
Over the next 15 years, LADWP w

replace over 70% of it.
And replace & modernize much o

grid infrastructure used to reliab

deliver power to our customers.
No other utility in the country is

undertaking such a significant

transformation.
L.A.’s Clean Energy Future.

A future with more efficient use of

energy, more renewable energy, ancoal, is being built right now throug

complete transformation of LADWP

power supply.
Our Objective:

To create a reliable, long‐term and

sustainable clean energy future fo

while complying with State mandaa cost effective manner.
The Result: Creating a Clean Energ

Future for L.A.

LADWP’s CO2 emissions are already 21% below 1990 le

expected to be 59% below 1990 level in 2025.

In 2025, we will have reduced CO2 emissions by 10.6 million metric compared to the 1990 baseline level, equivalent to removing 2 milliothe highway. 
LADWP is making unprecedented

investments in:

Energy Efficiency

Renewable Energy

Rebuilding Local Power Plants

Power Reliability

All are essential parts of eliminating and

replacing coal power and creating a clea

future for L.A.
Our future power supply is coa

Present Future

10% 
Our Goal:

Completely eliminate LADWP’s use of c

power as quickly and cost effectively apossible in a way that ensures continue

reliability of our power supply.
L.A.’s coal power comes from tw

power plants:

Navajo Generating StationLocation: Page, AZ

Capacity: 2,250 megawatts

Owners:

U.S. Bureau of Reclamation – 24%Salt River Project – 22%LADWP – 21% (477 MW)

Arizona Public Service – 14%

Nevada Energy – 11%

Tucson Electric ‐ 8%

Intermountain Power ProjectLocation: Delta, UTCapacity: 1,800 megawatts

Customers: 6 SoCal and 30 Utah power purchasers

LADWP’s share: 48%‐66% of output, 875 – 1,200 MW

Owners: 23 Utah municipal utilitiesTransmission: 500 miles of lines connecting to SoCal 
Right now Coal is 39% of our base load (24

power supply. How will we replace it?

Integrated Resource Strategy: Increased Energy EfficiencRenewable Energy. Clean and efficient natural gas is used 

maintain reliability.

Navajo: 477 MW

IPP: 875-1200 MW
Each element plays a vital role in mai

a reliable future energy supply for LA
Wind output varies every day, throughout the 

Cleaner burning natural gas is critical as a brid

to ensure reliability.
Solar output also varies, making bas

power critical to maintain reliability
Eliminating COAL power from Navajo

Generating Station.

LADWP must stop receiving

coal power from Navajo by 2019.

LADWP made strategic decision to

divest of its share by 2015.

Early exit avoids financial risk; ensures

customers receive maximum value.

Currently we are in negotiations for

LADWP to sell its 21% share of Navajo

to Salt River Project (SRP), which would

end LA receiving coal power from

Navajo by December 31, 2015
IPP is different. Exiting IPP before co

expiration requires a collaborative ef

LADWP does not own any part of theplant. We are customers along with 5other So Cal municipal utilities and 30

Utah power purchasers.LADWP cannot act unilaterally – anychange to the Power Sales Contractrequires approval of all SoCal and Utah

participants.

All 6 SoCal cities depend on IPP for

base load coal power and arecontractually obligated to buy itthrough 2027.
Unable to renew current contracts w

IPP beyond 2027, LADWP and local cfaced a choice...

Stay with IPP through 2027 and site, permit and build 

new plant and transmission lines elsewhere

OR modernize and rebuild IPP into a new plant

that meets CA emissions standards.Working with all IPP partners, we have achieved conse

a win‐win solution that’s good for Utah and good for S

municipalities:

Stay at IPP and build a small, clean natural gas 

plant and free up transmission capacity to dev

more renewable energy. 
Why build at IPP?

Return on investment: LADWP customersinvested billions in transmission and the

plant itself.

‐ 490 miles of transmission (STS)

‐ Carries 400 MW in renewable energy

from Utah to SoCal

‐ 2,400 megawatt transmission

capacity

‐ $11.5 billion in today’s dollars

Cost‐effective resource sharing with local

Utah utilities

Uses existing transmission lines rather

than building new and frees up room to

develop and bring more renewables to

SoCal.Reduces emissions by over 66%

IPP
Amend UT law to

allow non‐coal

production at IPP

Amend IPA

organizational

agreement

Amend ex

power sa

contrac

Receive renewal

power sales contracts

Complete new

power sales

contracts

Calif. EneCommiss

approv

Key steps to eliminating coal from 

Completed Completed Underway

Anticipated June 2013 Anticipated by 2020 Timefra

end of 2013
IPP Contract Amendment Pro

Fuel will change from Coal to Natural Gas at least by Ju

2025; timing for earlier conversion determined by part

Plant size will reduce by at least 1/3; allowing room for 

renewable sources to be delivered

Allows size of replacement to be reduced further or alt

long as it complies with CEC regulations

Provides funds for decommissioning coal units

Provides a future renewal contract that gives access to 

and transmission until 2077
A Clean Energy & Coal Free LADW

Navajo Generating Station:LADWP will end Coal power from Navajo 

Dec 2015.

Intermountain Power PlantTransition will begin by 2020 and becompleted no later than 2025.
Questions?