LADWP Plans to Spent $97MM on Renewables

By Published On: September 22, 2006

Los Angeles Department of Water & Power commissioners activated a new surcharge that will be used for renewables development September 19. The muni plans to collect $97.5 million and use it for renewable energy and demand-side-management programs. While LADWP base rate changes have to be approved by the city council, this surcharge is on the cost of fuel for power plants and will be passed through directly beginning October 2. Over the next 12 months, the department plans to spend $9 million on renewable energy and $500,000 on demand-side management. Most of the money – $65 million – will go toward small hydro plants, including $28.4 million under a new agreement with PowerEx for electricity from small dams in British Columbia. The department said it will purchase $14.7 million worth of wind power from a PPM facility in Wyoming. It will spend $12.9 million to buy additional renewable energy on the open market, with the balance reserved for landfill gas projects. Expenditures on renewable energy and demand-side management will be a minuscule part of the overall 3 cents/kWh surcharge.

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