Pasadena Water and Power to Ask Council Committee to OK 10-Year Geothermal Deal Worth $188 Million

Pasadena Water and Power is seeking authority from the City Council to enter into a contract with the Southern California Public Power Authority to purchase geothermal energy and capacity from Calpine Geysers, a geothermal facility in Sonoma, Calif., beginning in January 2025 so the City could comply with state requirements for using renewable energy sources.

The recommendation will be discussed by the City Council’s Municipal Services Committee on Tuesday, Jan. 17, during a special meeting which begins at 4 p.m.

Under Senate Bill 100 of 2018, the City is required to derive 60 percent of retail electricity sales from renewable energy sources by 2030, with the goal of transitioning to 100 percent carbon-free energy by 2045.

PWP, in an Agenda Report for the City Council, said it has consistently exceeded carbon-reduction targets, focusing on resources best suited to meet Pasadena’s energy needs.

In the report, PWP said it intends to purchase up to 10 megawatts of geothermal energy from Calpine Geysers for the first two years beginning in January 2025, and 35 megawatts for the remaining eight years for a contract amount of $188 million. 

PWP said the annual costs of the proposed contract will be incorporated into future PWP budgets as part of the utility’s overall annual electricity resource costs. During the annual budget development process, PWP will adjust for multiple changing cost and revenue factors and present a balanced budget for the City Council’s consideration.

No rate adjustments are being recommended as of the moment, but PWP will evaluate overall costs and may return to the City Council with any proposed rate adjustments if necessary.

The Southern California Public Power Authority (SCCPA) is a Joint Powers Authority created in 1980 for the purpose of providing joint planning, financing, construction, and operation of transmission and generation projects. Comprised of eleven municipal utilities and one irrigation district, SCPPA’s member utilities, which includes Pasadena Water and Power, serve more than five million Californians across a service area of 7,000 square miles. SCPPA’s members supply 16 percent of California’s power.

Calpine Geysers LLC was one of several renewable energy providers that responded to SCCPA’s Request for Proposals in January 2022. PWP said it offered the most competitive price and was ultimately determined to be the most responsive because it qualifies for renewable energy compliance and will help PWP meet requirements set by the California Independent System Operator.

Pasadena stakeholders and customers may attend the public in-person meeting at the City Council Chamber, Room S249 at City Hall.

The meeting is also accessible online through http://pasadena.granicus.com/MediaPlayer.php?publish_id=9 and www.pasadenamedia.org.