Southern California Munis Enter Wind Power Deal

By Published On: November 30, 2007

A group of Southern California municipal utilities entered into an agreement for 99 MW of wind power from a project PPM Energy is building in Oregon. The Los Angeles Department of Water & Power expects to receive the lion’s share of its power, 69 MW, by 2009. Munis in neighboring Burbank and Glendale will get the other 20 MW and 10 MW, respectively. LADWP board of commissioners’ president Nick Patsaouras said that deal announced November 26 “marks another significant step” in reaching a departmental goal of 20 percent renewable energy by 2010 and 35 percent by 2020. The wind project is expected to meet 0.8 percent of the department’s power needs, enough to serve 32,100 homes, added Robert Rozanski, LADWP acting general manager. “Another bonus is that we will be able to utilize existing transmission, making this a very economical and attractive project,” he said. Under the 18-year deal worked out through the Southern California Public Power Authority, LADWP plans to pay $59.30/MWh for power, subject to upward adjustment under an agreed upon cost escalation factor. The authority is to pay for transmission charges levied by the Western Electric Coordinating Council and Bonneville Power Administration at the rate of $17.27/MWh. Over the life of the agreement, PPM expects to receive $306.6 million. PPM, a subsidiary of Scottish Power, is building the project, known as Pebble Springs Wind, in Gilliam County, Oregon. LADWP expects the project to operate at a capacity factor of 32 percent. Its power will go to the Northern Oregon border hub of the Pacific High Voltage Direct Current Transmission Line, which feeds into LADWP’s Sylmar station. At the end of the agreement, the authority will have a chance to purchase the project.

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