LADWP Moves to Sell Coal Plant Stake; Emissions Cuts Equal to 1 Million Cars off the Road
Tentative Agreement with Salt River Project Would Meet State Climate Change Legislation Ahead of Schedule and Reduce Coal from LA’s Energy Mix
LOS ANGELES – The Los Angeles Department of Water and Power (LADWP) today took a major step toward reaching Mayor Garcetti’s goal of eliminating coal from its power mix by 2025 by approving an agreement to sell the LADWP’s 21% share in the coal-fired Navajo Generating Station outside of Page, Arizona. The sale would reduce LADWP’s greenhouse gas emissions by 5.39 million metric tons over the next 3 ½ years—equivalent to taking over one million cars off the road.
Today’s action by the Board of Water and Power Commissioners will also put LADWP on a path to end power deliveries from the plant by mid-2016, about 3 ½ years ahead of the date mandated by State climate change legislation.
“This is an important step toward cleaner air, addressing climate change, and creating a clean energy future for Los Angeles,” said Mayor Eric Garcetti. “The sale of the Navajo Generating Station is just the latest example of LA’s national leadership in carbon reduction and climate change action, taking us one step closer to my goal of getting LA off coal by 2025.”
“This is another important step on the road to increasing clean renewable energy and eliminating coal power from our City’s future,” said Energy and Environment Committee Chair and LA City Councilmember Felipe Fuentes. “I applaud LADWP and Salt River Project for reaching an agreement and look forward to reviewing this matter fully when it comes before the City Council.”
Under the agreement with Salt River Project (SRP), LADWP would stop receiving its 477 megawatt share of coal power from Navajo when the sale closes on July 1, 2016. The agreement with SRP requires an escrow period of approximately one year before the sale can be finalized.
Mel Levine, President of the Board of Water and Power Commissioners, said the Board had made a strategic decision to eliminate Navajo coal power earlier than required. Early elimination of coal power will ensure compliance with SB 1368 and the Global Warming Solutions Act of 2006 (AB 32), which created the state’s Cap and Trade Program to reduce greenhouse gas emissions.
Levine said, “Not only will LADWP achieve early compliance with state legislation, we will also save costs, gain valuable transmission assets and receive renewable geothermal power through this agreement.”
In addition, SRP has agreed to permanently shut down one unit at Navajo, which will significantly reduce emissions in that region. “We are very pleased that LADWP and Salt River Project have agreed to terms that best serve our customers and our strategic goals,” LADWP General Manager Marcie Edwards said. “It is important to us that the environmental benefits of the agreement extend beyond the city of Los Angeles to the area in which the plant is located.”
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