INTERMOUNTAIN
POWER PROJECT
UPDATE
City Council
November 15, 2022
WATER AND
POWER
ISSUES TO DISCUSS
• Background on IPP contract(s) and SB 100
• Update on coal supply
• Update on IPP renewal contract
• Update on IPP renewal costs
• Discuss green hydrogen
• Next steps
IPP POWER SALES CONTRACT
Item Details of Coal Plant Details on Renewal Project
Resource Type Coal Natural gas & green hydrogen
Location Delta, Utah Delta, Utah
Megawatt (MW)
Capacity of generation
1800 MW 840 MW
Commercial Operation
Date
June 1986 (Unit 1) and
May 1987 (Unit 2)
June 2025-2045 (for natural gas)
Post 2045, must be SB 100* compliant
Termination date June 15, 2027 2077
*SB 100 requires 60% RPS by 2030 and 100% zero emissions by 2045
IPP POWER SALES CONTRACT
Item Existing Contract
(1987 – 2027)
Renewal Contract
(2027 – 2077)
Southern Transmission
System (STS) capacity
2400 MW 2400 MW
BWP % share of generation 4.17% 3.33%
BWP % share of STS 4.49% 4.2%
BWP generation share
(MW)
89.28 MW coal (until
June 2025), 35.028 MW
natural gas (July 2025
to June 2027)
28 MW, starting June 16, 2027
(after termination of original
Power Sales contract for IPP
coal)
BWP STS share (MW) 107.95 MW 101.4 MW
IPP POWER SALES CONTRACT
Item Details of Coal Plant Details on Renewal
Project
Owner Intermountain Power Agency
(IPA)
IPA
Operating
Agent
Los Angeles Department of
Water and Power (LADWP)
LADWP
SCPPA*
Participants
Anaheim, Burbank, Glendale,
LADWP,Pasadena and Riverside
Burbank, Glendale and
LADWP
*SCPPA: Southern California Public Power Authority
SB 100
• SB 100 was signed into law on September 10, 2018
SB 100 Policy Details
Renewable Portfolio Standard
(RPS)
60% RPS by 2030
Zero-carbon portfolio
requirements
Zero-carbon resources supply 100%
of electric retails sales by 2045
UPDATE ON IPP COAL SUPPLY
• IPP to run at minimum levels until June 2023
• Due to shortage of coal
• Increases our need to buy power
• IPA and LADWP will start new study for decommissioning • Expected in 2024/2025
• Costs for IPP renewal are increasing
IPP RENEWAL UPDATE
• Reduced BWP
share of
generation to 28
MW
• Reduced BWP
share of the STS to
101 MW
Updated BWP IPP
renewal MW share
JULY 2019
• Kern River
selected as vendor
• Kern River is
working on the
permits for the gas
pipeline
IPA secured natural
gas transportation
vendor
NOVEMBER 2019 • Mitsubishi unit
selected for OEM*
IPA & LADWP
secured OEM
contract
FEBRUARY 2020
• Advanced Clean
Energy Storage
(ACES) selected
for green
hydrogen storage
IPA & LADWP
secured storage
vendor
APRIL 2021 • RFPs** public for
EPC*** contract
and fuel supply
manager
ONGOING
*OEM: Original Equipment Manufacturer
**RFP: Request for Proposals
***EPC: Engineering, Procurement and Construction
WHY BWP IS IN IPP RENEWAL
• IPP Renewal was only way to retain rights on STS
• STS provides additional access to renewable resources • Otherwise, there would be NO access to STS
• Innovative technology access
• Green hydrogen
• Energy storage
MAP OF IPP
• Located in a remote, rural area
• Ideal for green hydrogen
storage and processing
(salt domes on site)
• Access to renewable resources
(solar, wind, geothermal)
IPP RENEWAL COST UPDATE
August
2019 July 2020 July
2021
July
2022 Change
Total
(Billions) $2.25 $2.4 $2.9 $3.6 $1.35
BWP
Share
(Millions)
$86.5 $94.4 $110 $141 $54.5
IPP COST SAVINGS
• BWP/GWP have option to opt in/opt out of green
hydrogen and storage
• Allows BWP to analyze costs and benefits of green
hydrogen before committing
• BWP is not liable for generation costs for green hydrogen until we opt in
WHAT IS GREEN HYDROGEN
• Hydrogen produced with renewable energy resources exclusively • Process of production generates zero carbon
• Only technology available that can meet zero-carbon requirement utilizing electrolyzers
IPP GREEN HYDROGEN
ECONOMICS
HYDROGEN
CONVERSION
3 MW OF
RENEWABLE
ENERGY IN
1 MW OF GREEN
HYDROGEN OUT
BWP, IPA AND LADWP
RELATIONSHIP
• IPP Executive Committee
• IPP Coordinating Committee
• IPP Finance Committee
• IPP Renewal Contract Coordinating Committee
• …and various subcommittees
Questions?
Mandip Samra
Assistant General Manager – Power Supply
[email protected]
818-238-3550