Municipal Services Committee Approves 10-Year Geothermal Deal Worth $188 Million

Calpine Geysers geothermal power plants are located in Sonoma, Calif. Its operations comprise a geothermal power plant and associated steam fields. Calpine’s plants at The Geysers make it North America’s largest producer of clean, reliable renewable geothermal power, the operator reports, with the capacity to produce 725 megawatts of electricity around the clock. [Photo courtesy Calpine]

The Municipal Services Committee on Tuesday unanimously approved a 10-year contract with Southern California Public Power Authority (SCPPA) for the purchase of geothermal energy and capacity from Calpine Geysers, LLC for $188 million.

The proposed expansion of Pasadena Water and Power’s (PWP) renewable resources portfolio is set to meet California’s aggressive renewable portfolio standard and greenhouse gas emission reduction goals.

Cities are required to transition to 100 percent carbon free delivered energy by 2045.

Through the contract, Pasadena will receive up to 10 megawatts of the capacity generated by Calpine Geysers beginning January 1, 2025.

This will increase to 35 megawatts beginning January 1, 2027.

In addition to augmenting PWP’s renewable energy portfolio, the Calpine Geysers will also support reliability by providing approximately 8.9 megawatts of Resource Adequacy in years 2025 and 2026, increasing to 31.2 megawatts from 2027 through 2034.

That will only partially offset the 109 megawatts capacity that will be eliminated with the termination of Pasadena’s interest in the Intermountain Power Project in June 2027.

As of today, there are no rate adjustments recommended as part of the action.

But according to PWP’s report, staff will evaluate overall costs, including those representing replacement of expiring energy contracts and will return to City Council if necessary, with the proposed rate adjustments to address revenue requirements not covered by current rates.

“This is part of Pasadena PWP’s ongoing effort to replace the portfolio and to build into it a green energy for the expiring power plant long term contract with Intermountain power plant,” PWP’s interim general manager Jeffrey Kightlinger said.

Members of the public who joined the meeting expressed their support for the 10-year contract.

They also encouraged the City Council to agendize and support Pasadena 100’s draft resolution directing PWP to transition to 100 % carbon free energy by 2030 as quickly as possible.

“Many California cities have already achieved this target and have implemented a plan to do so by 2030 or 2035. We will be so proud to see our city join these cities. We believe that this goal is achievable and affordable and that our city can prosper as a result,” said Cynthia Cannady.

“I appreciate your support for this geothermal project. That really means a lot to us to hear that from the public,” Vice Mayor Felicia Williams said in response to public commenters.

City Manager Miguel Márquez said the resolution of Pasadena 100 will be discussed by Municipal Services Committee during its meeting on January 24.