Renewable Energy Policy
Overview
Aimed at improving air quality and reducing dependence on fossil fuels, a Renewable Portfolio Standard (RPS) represents a goal to generate a certain percentage of the energy delivered to customers from renewable resources by a certain date. Renewable energy resources include solar, wind, geothermal, biomass, hydro, and other types of energy that is naturally occurring and sustainable.
The City of Los Angeles has recognized the benefits and importance of providing more of its energy needs from renewable resources.
In June 2005, the City Council approved the LADWP’s Renewable Portfolio Standard (RPS) policy that called for providing 20% of its energy sales to retail customers from renewable energy resources by 2017, with an interim goal of 13% by 2010. The policy provides a long-term framework to achieve the 20% goal without compromising power reliability or the financial stability of the Department and its customers.
In December 2005, the recently appointed Board of Water and Power Commissioners recommended that LADWP accelerate the RPS goal to obtain 20% of eligible renewable resources by 2010. The Board’s recommendation is consistent with the State’s Energy Action Plan and the California Energy Commission’s Integrated Energy Policy Report to accelerate the State’s RPS to 20% by 2010.
The State had implemented an RPS program for the State’s investor owned utilities (IOUs) after passage of Senate Bill 1078 in 2002. The goals of the State’s RPS are to increase total annual retail power sales from eligible renewable resources by at least 1% per year, and attaining 20% of aggregate annual retail sales by 2017.
Although LADWP, as a municipally owned utility, is exempt from SB 1078, the legislation required municipal utilities to develop their own renewables program consistent with the intent of SP 1078.
The RPS will be formalized as part of the LADWP Power System’s 2006 Integrated Resource Plan (IRP). A draft of the 2006 IRP is available for review and expected to be adopted early this fall by the Board of Water and Power Commissioners. The 2006 IRP, which will supersede the previously approved 2000 IRP, provides a blueprint for meeting future energy load growth, improving system reliability, maintaining the lowest possible rates, and demonstrating environmental leadership.
For more information about the proposed RPS, please contact Renewables@ladwp.com.
More about the LADWP Power System’s 2006 Integrated Resources Plan.
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