Pasadena Bucks State on Renewable Energy

As state leaders in Sacramento race to establish a 50 percent renewable portfolio standard in 2030, Pasadena is preparing to adopt a plan calling for its Department of Water & Power to stop at a 40 percent renewable power standard on cost concerns.

The utility is seeking to balance environmental stewardship with cost and system reliability concerns, said Leesa Nayudu, muni resource planning manager.

The muni—which serves 141,000 people—presented the blueprint for the periodic update of its integrated resource plan at a meeting May 13.

Environmentalists wondered why the plan did not incorporate Gov. Jerry Brown’s call for utilities to meet a 50 percent renewable portfolio standard and help double energy efficiency levels in existing buildings by 2030.

One environmental advocate predicted the muni’s plan will be “outdated by September” when the legislative session ends.

Pasadena’s plan comes as state legislation is rapidly advancing in Sacramento to make the Governor’s goals law.

Behind the muni’s cautiousness is its inability to guarantee an early phase-out of its coal power contract with the Intermountain Power Plant in Utah, said Nayudu.

The muni meets anywhere from 40 to 60 percent of its energy needs from the coal-fired plant in Utah.

Last year it got 46 percent of its power from the plant and 28 percent from renewable sources, Nayudu said.

Pasadena’s power supply contract with Intermountain ends in 2027. Under state law it cannot be renewed.

Today, coal power at about $30/MWh hour, according to Gurcharan Bawa, muni assistant general manager, has helped the muni achieve an average cost of power of $71.94/MWh.

An economic analysis of different future resource portfolios the muni weighed in preparing its plan shows that under the 40 percent renewable standard the cost of power would average $91.90/MWh over the next 20 years. Meeting a 50 percent renewable portfolio standard would raise that price to $98.57/MWh. More aggressive plans analyzed, including one to meet a 70 percent renewable standard, would raise the cost of power even more.

The average bill for power under the 40 percent renewable power scenario for customers using 500 kWh each month would be $96.31 over the period compared to $102.01 under the 50 percent plan. That’s about 5.9 percent more. Today, the average bill for 500 kWh of usage each month is $84.95.

Muni officials said they are worried that excessive prices for power could put Pasadena at an economic disadvantage compared to other cities in California. In addition, Nayadu said a survey of residents shows most people don’t want to pay more for renewable energy.

Cumulative carbon dioxide emissions over 20 years under the 40 percent renewable plan would stand at about 13 million tons compared to a little more than 9 million tons under the 50 percent renewable energy portfolio path, or about 43 percent more.

As part of the plan to reduce those emissions, the muni would establish a feed-in tariff for distributed solar systems beginning in 2016 and a community solar program. The details remain to be worked out.

Ultimately the muni sees power demand from its grid staying level or falling—in spite of expected population growth—due to increased use of distributed generation and higher levels of energy efficiency. The plan assumes a 1 percent/year increase in energy efficiency.

Before the blueprint is cast in cement, the city council must approve it.

Some environmentalists are hopeful that the city’s new mayor, Terry Tornek, who was endorsed by the Sierra Club when elected in April, will work to strengthen the plan.

The club has been fighting for a strong carbon reduction and renewable energy plan by the muni that includes an early phase-out of coal power. —William J. Kelly