LADWP Puts a Hold on $2b in Power Plant Projects

The Los Angeles Department of Water and Power has put on hold all planned local repowering projects until a system-wide, in-depth, and independent study/analysis is conducted to analyze the necessity for repowering and identify "all viable alternatives."

The decision affects roughly $2 billion in potential investment. The study is expected to be completed in early 2018. LADWP is one of the largest municipal utilities in the U.S.

The study will analyze the reliability of local generation and transmission systems through 2030, evaluate greenhouse gas emission levels for each alternative, include an assumed high penetration of renewable generating resources based on LADWP's renewable portfolio targets, and recommend "the most practical mitigation solutions."

The study results will be used to assess potential impact on rates as well as determine "optimal solutions, technologies, and projects to maintain and improve the reliability of LADWP’s local electric system."

Possible outcomes of the study include repowering generation units at a reduced capacity, developing renewable energy resources with energy storage, making transmission line improvements only, and deploying distributed energy resources that could include energy efficiency, demand response, solar photovoltaics, electric vehicle charging, and energy storage.

LADWP was formed in 1902 and began delivering electricity in 1916. It serves around 1.4 million customers with electricity generated from 22 facilities with a total capacity of around 7,600 megawatts. As of 2014, around 40% of the electricity came from coal-fired power plants, 22% from natural gas, 20% from renewable energy sources, and 9% from nuclear.

In early June, the California Independent System Operator (ISO) said that LADWP will join the real-time western Energy Imbalance Market (EIM) beginning in April 2019.

Utilities currently participating in the EIM include Oregon-based PacifiCorp; NV Energy of Las Vegas; Puget Sound Energy of Washington state; and Arizona Public Service of Phoenix, Ariz. The market currently serves utility consumers in Arizona, California, Idaho, Nevada, Oregon, Utah, Washington, and Wyoming.

Other utilities that have agreed to join the EIM include Portland General Electric in October 2017, Powerex Corp. of Canada and Idaho Power in April, 2018, Seattle City Light and Balancing Authority of Northern California/Sacramento Municipal Utility District in April, 2019, and Phoenix-based Salt River Project in April, 2020.