Municipal Service Committee Approves Renewable Energy Contract

The City Council’s Municipal Services Committee approved a contract with the Southern California Public Power Authority to purchase renewable energy from Coso Geothermal Power Holdings.

“The contract will supply about 8% of PWP’s annual needs during the first 10 years and 16%,” according to a city staff report. “It will partially fill the gap for energy when the existing power agreement with the Intermountain Power Project terminates in June 2027.”

In 1987, the IPP, a coal-fired facility, began providing power to PWP, along with Anaheim, Burbank, Glendale, Los Angeles, Riverside, and a number of cities and co-ops in the state of Utah. 

State law requires the city’s utility to buy renewable energy. The current renewable portfolio standard goals called for 33% of retail sales by 2020 and an increase to 44% in the next four years, and an increase to 60% by 2030.

Under the California Energy Commission’s Enforcement procedures, all local publicly owned utilities must account for an increasing annual renewable energy procurement to demonstrate reasonable progress toward reaching the mandated thresholds by 2020 and, with the enactment of Senate Bill 350, 50% by 2030.

PWP must procure a minimum quantity of electricity products from eligible renewable energy resources. SB 350, or the Clean Energy and Pollution Reduction Act, established clean energy, clean air, and greenhouse gas (GHG) reduction goals.

Besides establishing thresholds, SB 350 also requires the state to achieve double energy efficiency savings in electricity and natural gas by 2030. 

In order to reach these goals and continue cutting back on greenhouse gas emissions, utilities must submit plans detailing how they will satisfy customers, reduce GHG emissions, and increase the use of clean energy resources.

“Since the inception of the state mandatory requirements, PWP has been consistently exceeding the state goals for both renewables and carbon reduction,” according to a city staff report.

Renewable energy resources and zero-carbon reduction must make up all retail sales of electricity in the state by 2045.

Under the recommended 20-year contract, PWP will meet the current compliance targets. The project will supply about 8% of PWP’s annual energy needs during the first 10 years, and 16% thereafter.