Contract Extension Will Save $72.3 Million Over Four Years and Provide Green Power for 116,000 L.A. Homes Annually
LOS ANGELES (JUNE 5, 2023) – The Los Angeles Department of Water and Power (LADWP) has taken a significant step toward achieving 100% clean energy for Los Angeles by extending the Power Sales Agreement with the Southern California Public Power Authority (SCPPA) for approximately 262 megawatts (MW) of renewable energy from a major wind farm in the Pacific Northwest. LADWP’s action will support upgrading the existing wind turbines to extend their lifespan at a reduced price that is expected to save about $72.3 million over four years.
Since 2010, the Windy Point Project, also known as Windy Flats, located in Goldendale, Washington, has been a part of LADWP’s renewable energy portfolio, which was estimated to be more than 40% of total retail power sales in 2022. Under the amended agreement, LADWP will receive about 700,000 megawatt-hours (MWh) per year of clean, efficient wind power for four more years—from 2030 through 2034—from the wind farm. That amount of green power will serve more than 116,000 Los Angeles homes and offset nearly 230,000 metric tons of CO2 emissions annually, equivalent to removing more than 52,300 gas-fueled cars from the road each year.
“This agreement is an important part of achieving our accelerated goal of 80% renewable energy by 2030 and to ultimately become 100% carbon free,” said Martin L. Adams, LADWP General Manager and Chief Engineer. “LA will continue receiving high-quality wind power at a significantly reduced price while optimizing a key transmission line connecting the Pacific Northwest to Los Angeles,” Adams said.
As the only recipient of energy from the Windy Point Project, LADWP will continue to administer and oversee the amended agreement, under which the utility will receive energy from Windy Point at a new price of $56.46 per MWh for the extended four-year term at a total cost savings estimated to at $72,324,000. The amended agreement was approved by the LADWP Board of Water and Power Commissioners in November 2022 and the SCPPA Board of Directors in March 2023.
SCPPA is a joint powers authority providing member utilities with joint planning, financing, construction, and operation of transmission and generation projects. SCPPA includes 11 municipal utilities, including LADWP, and one irrigation district.