LADWP is about ready to work more closely with the California Independent System Operator under a deal in which it would sell and, perhaps, sometimes buy power from the grid operator. A Los Angeles City Council committee approved the agreement Aug. 2 and sent it to the full council, which is due to take it up Aug. 9. If approved, the muni would gain the ability to \u201ctransact\u201d directly with the grid operator, explained LADWP spokesperson Joe Ramallo. Since the state energy crisis in 2000-01, LADWP has used what Ramallo called \u201cthird party marketing entities or Southern California Edison to assist with CAISO transactions.\u201d Ramallo said there\u2019s no \u201cfirm quantity or dollar amount\u201d associated with the planned direct transactions in the future. A staff report indicates LADWP plans to extend up to $2.2 million of credit to CASIO for power purchases. The deal would revive a direct relationship between the muni and grid operator that LADWP broke off after the energy crisis. At that time, the muni was a major supplier of power to the grid operator, which ran up a tab of $100 million. Now that the bill is squared away, LADWP wants to resume power sales. The grid operator controls transmission primarily for investor-owned utilities, but also for many other entities participating in its wholesale market. Two significant munis have not been recent participants--LADWP and the Sacramento Municipal Utility District. Those entities supply their own grid operations in their districts. The falling out was tense enough to create what CAISO spokesperson Stephanie McCorkle termed \u201ccommunications issues\u201d between the grid operator and LADWP. Since then, she added that the muni\u2019s been participating in \u201csummer preparedness drills.\u201d Sales and economical purchases with CAISO would boost the muni\u2019s economic situation, according to the staff report, and help it \u201cintegrate renewable energy generation.\u201d Potential electricity sales come as the muni is undertaking expensive new initiatives to achieve state environmental goals. For instance, the muni announced Aug. 2 that it\u2019s resuming its solar rooftop incentive program for its customers, which ran out of money earlier this year. The state\u2019s \u201cMillion Solar Roofs\u201d legislation, SB 1, set a 280 MW solar goal for LADWP at an estimated cost of $313 million worth of incentives through the end of 2016. \u201cWe are committed to spending the full $313 million for customer incentives and achieving as much solar as possible with that level of funding,\u201d stated muni general manager Ron Nichols announcing resumption of the incentives. LADWP increased the budget for the incentive payments to $60 million in the current fiscal year and said it anticipates requesting an additional $60 million per year in each of the next two fiscal years.