Department of Water and Power City of Los Angeles

Planning to Meet the Challenge

“Greening LA” February 2007

2

LADWP Generation Resources

HAYNES

HARBOR

CASTAIC

SCATTERGOOD

VALLEY

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2007 POWER CONTENT LABEL

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First Quarter         

 2007 POWER CONTENT LABEL  LADWP LADWP 2005 CA

 ENERGY Power* Green Power** POWER MIX*** RESOURCES (projected) (projected) (for comparison)

    Eligible Renewable**** 8% 100% 5%     -- Biomass & waste 1% - <1%     -- Geothermal <1% - 4%     -- Small hydroelectric 6% 25% 1%     -- Solar <1% - <1%     -- Wind 1% 75% <1%    Coal 47% - 38%    Large Hydroelectric 7% - 24%    Natural Gas 29% - 33%    Nuclear 9% - 0%    Other <1% - 0%

    TOTAL 100% 100% 100%*   88% of LADWP Power is specifically purchased      from individual suppliers.**  100% of LADWP Green Power is specifically purchased     from individual suppliers.***  Percentages are estimated annually by the California    Energy Commission based on electricity sold to     California consumers during the previous year. **** In accordance with Los Angeles City Council's action on 10-5-04 for File No. 03-2688 (RPS).

For specific information about this electricity product, contactLADWP at 1-800-DIAL-DWP.  For general information about the Power Content

Label, contact the California Energy Commission at 1-800-555-7794or www.energy.ca.gov/consumer.

•Renewable Energy2007 Projections,

•Eligible Renewable Energy

in 2002 ~3%

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LADWP RPS Master Plan

On December 13, 2005 LADWP management presented to the Board on how LADWP plan to meet the RPS goal of 20% by 2010

Eight general areas that make up the Master Plan

– Existing resources – Consisting of Aqueduct, Hyperion digestion, Lopez microturbines, solar rooftops, landfill gas contracts, Wyoming Wind project, and purchases

– Planned resources – Consisting of Pine Tree Wind Project, Powerex Small Hydro, and the ongoing solar rooftops program

– 2004 LADWP RFP – Resource acquisition consisting of originally seven projects

– 2005 SCPPA RFP – Resource acquisition consisting of seven projects

– 2006 SCPPA RFP – Resource acquisition consisting of twenty-eight projects.

– LADWP 2007 RFP – Resource development on LADWP owned properties or near LADWP transmission system issued RFP on January 30, 2007.

– Transmission Developments – Consisting of the Pine Tree Transmission Line, new Tehachapi Transmission System, Green Path Project, and Southern Transmission System upgrade

DSM Assumptions – Use the Maximum Achievable Level

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2010

Transmission Line Technology PPA/Own COD MW GWh %DWP Sales Source

SP15

Small Hydro Small Hydro Ow n In service 166 462 1.9% Existing

Hyperion Digester Gas Biomass Digester Ow n In service 22 143 0.6% Existing

Lopez Microturbine Biomass Landfill Gas Ow n In service 2 5 0.0% Existing

California System Purch Various Types PPA In service 0 100 0.4% Existing

WM Bradley Biomass Landfill Gas PPA In service 6 36 0.2% Existing

SCS Penrose Biomass Landfill Gas PPA In service 6 45 0.2% Existing

Short-term Market Purchases Various Types PPA In service 0 266 1.1% Existing

Solar Rooftop Program Solar Photovoltaics Ow n In service 12 18 0.1% Existing

Solar Rooftop Program Solar Photovoltaics Ow n 7/1/10 9 12 0.0% DWP Rebate

Solar Rooftop SB1 additions - TBD Solar Photovoltaics Ow n 12/31/17 259 390 1.6% DWP Rebate- REC?

Water System Hydro Small Hydro Ow n 12/1/10 5 30 0.1% DWP Projects

Terminal Island Fuel Cell Biomass Digester Gas Ow n 12/1/07 1 8 0.0% DWP/City of LA

TI Renew able Energy Biomass Digester Gas Ow n 7/1/12 4 25 0.1% DWP/City of LA

Renew LA-1 Waste to Energy Ow n 7/1/10 25 200 0.8% City of LA

Renew LA-2 Waste to Energy Ow n 7/1/11 25 200 0.8% City of LA

Renew LA-3 Waste to Energy Ow n 7/1/12 25 200 0.8% City of LA

Renew LA-4 Waste to Energy Ow n 7/1/13 25 200 0.8% City of LA

Small Hydro Small Hydro PPA In service 18 94 0.4% 2006 SCPPA RFP

Total SP15 610 2,435 10.1%

McCullough-Victorville

SCPPA6 Solar Trough PPA 6/1/10 81 240 1.0% 2005 SCPPA RFP

LADWP5 terminated Wind PPA/Ow n 12/1/09 0 0 0.0% 2004 DWP RFP

Concentrated Solar Solar Ow n 12/1/10 50 130 0.5% 2006 JDG RFI

Wind Proposals Wind Ow n Unknow n 200 688 2.8% 2006 SCPPA RFP

Total McCullough-Victorville 331 1,058 4.4%

LADWP RPS Master Project List

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Inyo-Rinaldi

Pine Tree Wind Wind Own 7/1/09 120 340 1.4% 2001 DWP RFP

LADWP3 Wind PPA/Own 7/1/09 150 500 2.1% 2004 DWP RFP

Concentrated Solar Solar Own Unknown 83 200 0.8% 2006 SCPPA RFP

Concentrated Solar Solar Own Unknown 250 660 2.7% 2006 DWP RFP

Total Inyo-Rinaldi 603 1,700 7.0%

STS

SCPPA3 Wind PPA/Own 12/1/08 185 460 1.9% 2005 SCPPA RFP

PPM SW Wyoming Wind PPA In service 82 230 0.9% 2005 SCPPA RFP

Wind Proposals Wind Own Unknown 100 250 1.0% 2006 SCPPA RFP

Total STS 367 940 3.9%

COB/NOB

Powerex - BC Hydro Small Hydro PPA 1/1/07 50 430 1.8% 2004 DWP RFP

Wind Proposals Wind Own Unknown 100 271 1.1% 2006 SCPPA RFP

Total COB/NOB 150 701 2.9%

Green Path

SCPPA4 Wind PPA/Own 12/1/10 65 220 0.9% 2005 SCPPA RFP

Biomass sold to others Biomass PPA 7/1/07 0 0 0.0% 2006SCPPA RFP

Wind Wind PPA/Own 12/31/09 65 152 0.6% 2006SCPPA RFP

Concentrated Solar Solar Own 12/31/09 30 72 0.3% 2006 SCPPA RFP

Geothermal Geothermal Own 10/1/12 215 1,700 7.0% 2006SCPPA RFP

Salton Sea Geothermal Geothermal Own 12/31/10 100 800 3.3% 2006 DWP RFP

Total Green Path 475 2,944 12.2%

Grand Total 2,536 9,778 40.4%

Already providing renewable resource

High likelihood of providing the specified amount of renewable resources

Marginal likelihood of providing the specified amount of renewable resources

Projects from 2006 SCPPA RFP meeting initial screen, accounts for 14% in the total of 39%

RFPs for these projects have not been issued, accounts for 5% in the total of 39%

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DWP Renewable Energy Projection 2010+ by Type

RPS by Energy (GWh)

10%

12%

38%13%

21%

6%Small Hydro

Biomass/MSW

Wind

Solar

Geothermal

purchases

See LADWP RPS Master Project List for details

Projection is for about 40% of 2010 DWP Sales; provides large margin of safety to meet 20% by 2010 Renewable target.

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Location of Proposed Renewable Energy Projects and LADWP Transmission

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Wind

Biomass

Solar

Geothermal

Small Hydro

INYO

-RIN

ALD

I

STS

COB / NOB

SP-15

McCULLOUGH-

VICTORVILLE

GREEN PATH

•SCPPA6 / Solar•LADWP5 / Wind•Potential Solar and Wind

•SCPPA4 / Wind•Potential Solar•Potential Geothermal•Solar Rooftops

•BoS Waste Conversion•Small Hydro

•Potential Solar•LADWP3•Pine Tree

•Powerex•Potential Wind

•Potential Wind•PPM SW WY

•SCPPA3 / Wind

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Planned and Developed Renewable Resources

Pine Tree Wind Project (120 MW)

– RFP issued for Balance of Plant work.

– RFP issued for design build of the 230 kV transmission line .

– Barren Ridge switching station under construction.

Waste to Energy Conversion – Proposed four 25 MW (total of 100 MW) Municipal Solid Waste to energy conversion technology developments with Los Angeles Bureau of Sanitation. The projects will be located in Los Angeles and the in-service dates are projects to be 2010 through 2013.

Concentrated Solar Power – Proposing one 125 MW CSPs for development by LADWP on owned lands with transmission access and tentative in-service dates of 2010 and another 85 MW’s in a joint project.

Geothermal – 100+ MW of geothermal development in the Salton Sea area on owned land with tentative in-service date of late 2010.

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10

2006 SCPPA RFP Projects,after initial screening

ResourceType

TotalTotal

Capacity

% of

Total

Biomass 3 856 6.1%

Geothermal 1 215 15.6%

Solar Trough 2 113 8.2%

Hydro 1 18 1.3%

Wind 8 950 68.8%

Total 15 1,381

Inside CA Outside CA

825 55659.7% 40.3%

SCPPA Renewable Energy Committee members are further analyzing proposals for individual City requirements.

Term sheets being negotiated for several projects noted above

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Inyo - Rinaldi Line Upgrade Project

OWENS GORGE

COTTONWOOD

BARREN RIDGE

RINALDI

9 miles

81 miles

68 miles

76 miles

234 miles

INYO

SCE

CASTAIC

SYLMAR

NORTHRIDGE

71.6 miles

1. Reconductor Barren Ridge to Rinaldi w/ 1113 ACSS.

2. New line from Barren Ridge to Castaic w/ 1113ACSS.

OLIVE

500MW WTG

Pine Tree120 MW2007 COD

Wind 3100+ MW2009 COD

Wind 2150+ MW2008 COD

Barren Ridge

Pine Tree

Wind # 3 Substation

To Cottonwood/Inyo

To Rinaldi

To Castaic

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Southern Transmission System (STS)

13

13

(2)

(7)

(4)

GREEN PATH

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Potential Impediments

•Uncertainty in PTC’s and ITC’s

•CEQA completion prior to Governing Authority approval of PPA

•Manufacturing constraints – Wind Turbines & Solar tubes and glass

•Intermittent nature of wind & solar requires cautious integration into grid, more costly regulation

•California environmental process for new projects is lengthy, 12 to 24 months and appears to promote development out of state

•Renewables aren’t perfect – impacts to Birds, bats, visual blight, aviation - FAA & military aircraft, noise, tourism & recreation, etc.

•Lack of trained labor pool to operate and maintain renewable facilities

•Environmental Justice issues and NIMBY lawsuits in urban settings – MSW, landfill, biomass, etc.