Creating a Path for

Greater Renewables Intermountain Power Project (IPP)

What is the Intermountain Power Project?

Located in Central Utah, near Delta

2 Units -- 1,800 MW coal plant

IPP Transmission Systems

NTS - Northern Transmission System

(UT & NV)

STS - Southern Transmission

System (CA)

Microwave Communications

Systems

Land and Water Rights

Owned by Intermountain Power

Agency (IPA) – entity in Utah

LADWP is Operating Agent

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UTAH MUNICIPAL PURCHASERS: UTAH COOPERATIVE

PURCHASERS:

CALIFORNIA

PURCHASERS:

Beaver Logan Bridger Valley REA Anaheim

Bountiful Meadow Dixie-Escalante REA Burbank

Enterprise Monroe Flowell Electric Assoc. Glendale

Ephraim Morgan Garkane Power Assoc. LADWP

Fairview Mt. Pleasant Moon Lake Elec. Assoc. Pasadena

Fillmore Murray Mt. Wheeler Power, Inc. Riverside

Heber Oak City

Holden Parowan

Hurricane Price

Hyrum Spring City

Kanosh

Kaysville

Lehi

Who are the IPP Participants?

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35 Total IPP Participants Not in Renewal Contracts

Vision: Transitioning to 100% Clean Energy

Reliably, Responsibly, Affordably

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2013 Board and Council Approval

IPP - Convert 1800 MW Coal to 1200 MW Gas

2015 IPP Repower Project

Board and Council Approved

36 IPP Participants Approved

Process complete in 2017

Repower Project

1200 MW Natural Gas

STS – 500 mile, 2400 MW tx (CA)

NTS – Two 50 mile, 345 kv (UT)

– One 150 mile, 230 kv (NV)

Begin construction no later than 1/1/2020

COD no later than 7/1/2025

One public comment

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LADWP CLEAN ENERGY GOALS AND ACHIEVEMENTS

Year 2006 2017 2025 2030 2036

California RPS (POUs) 0% 27% 45% 50%

LADWP’S RPS Target 6% 31% 50% 55% 65%

Renewable Generation 331 MW

2,500 3,900 MW 4,500 MW

5,700 MW

(Solar, Wind, Geothermal) MW (2035)

Distributed Energy Resources (DER)

Local Solar 10 MW 387 MW 853 MW 1,177 MW 1,501 MW

Energy Storage 0 MW 42.6 MW 404 MW 404 MW 404 MW

Energy Efficiency (EE) 265 GWH* 760 GWh 3,486 GWh 4,421 GWh 4,733 GWh

Demand Response (DR) 0 MW 25 MW 500 MW 500 MW 500 MW

GHG Reduction 6.7% 50.1% 71.0% 78.5% 79.0%

* Information as of 2010

However…

Generation Transmission

IPP: STS Transmission versus Generation

Overall Capacity (LADWP Share)

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Current Generation 1,800 MW

2015 Contract

Approval 1,200 MW

Proposed Alternative

Repowering 840 MW

1,800 MW (1202 MW) 600 MW

(226 MW)

1,200 MW (1,192 MW) 1,200 MW (777 MW)

840 MW

(544 MW) 1,560 MW (1,425 MW)

• Proposal reduces overall GHG by ~83%

• LADWP > 500% increase in transmission for renewables

Today’s Consideration

2015 Board and Council Approved IPP Contracts

All 36 Participants Approved – Binding Contract

Contract allows “Alternate Repowering” (AR)

AR is NOT a Contract Amendment

AR is NOT a new contract to “buy” a plant

Requires a 35 Participant Vote

Board approval required before LADWP staff can vote yes on AR reduction from

1200MW to 840MW.

Maintains

Transmission

Reliability

Additional 360 MW

of renewables

Reduces use of in

basin gas

83% GHG

reduction

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Reduction saves ~$400 million

Key Points

This is NOT a New Contract

LADWP is NOT buying a new gas plant

Proposing to Reduce the approved 1200 MW gas plant to AR of 840 MW

360 MW - more transmission for renewables

LADWP - Five fold increase in transmission for renewables

~$400 million project savings

Not approved—project remains at 1200 MW

What is our “Ask”?

Permission from the Board to vote at the IPP

Coordinating Committee to reduce the size of the

IPP repowering from 1,200 MW to 840 MW

A “No” vote results in ~$400 M higher costs and the

construction of 1,200 MW gas plant approved in

2015

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Looking Forward and Doing More

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