Pasadena Water and Power
Bonanza Solar Facility Project
City Council
February 26, 2024
Item 22
Pasadena Water and Power
Introduction
• Checklist for Proposed Bonanza Project:
2018 IRP – Stipulates all new long-term energy shall be renewable/carbon-free IPP Divestment – Provides required replacement energy and capacity Resolution 9977 – Furthers the City’s goal to Carbon-Free by 2030 2023 IRP – Identified solar and battery as important sources of clean energy RPS Compliance – Advances mandated compliance with the State Renewable Portfolio Standards (RPS)
Resource Adequacy (RA) Compliance – Contributes toward meeting RA requirements by the California Independent System Operator (CAISO) to ensure reliability
2 Pasadena Water and Power
Background
• 2023 Power Integrated Resource Plan (IRP) was adopted and set one of the most advanced decarbonization goals in the country
> 100% Carbon-Free energy supply by the end of 2030 (Resolution 9977) > Requires a significant build-out of resources
• Increased resource needs to replace the energy and
capacity of the Intermountain Power Project (IPP) ending 2027 > Energy replacement
> Resource Adequacy (RA) for CAISO compliance
> Renewable Energy Credits (RECs) to meet state mandated RPS compliance
3 Pasadena Water and Power
Bonanza Project
• Bonanza Solar Facility Project
> Photovoltaic Solar: 300 MW
> Battery Energy Storage System (BESS): 195 MW of 4-hr storage > Location: Clark County, Nevada
> Includes Full Capacity Deliverability Status (“FCDS”) Ensures facility interconnection and the ability to deliver its full output to the CAISO grid
> Developer is EDF Renewables, Inc. (EDF) – one of the largest renewable energy developers
Contracting entity is Bonanza Solar, LLC – a subsidiary of EDF • PWP’s Share
> Photovoltaic Solar: 105 MW
> BESS: 55 MW
Azusa Light and Water will receive 20 MW of solar and 10 MW BESS 4 Pasadena Water and Power
Contract Terms
• Southern California Public Power Authority (SCPPA) Fixed Price Renewable PPA Term
> Term length: 20 year (1/1/2028 – 12/31/2047)
> COD: 12/31/2027
• Expected Energy (Annual): 303,534 MWh
> Highest Quality (PCC1) of RECs
• RA Capacity: 62.5 MW
• Price
> Solar: $47.76/MWh
> BESS: $16.84/kW-mo.
• Annual Cost: $25,611,400
• Lifetime Contract Cost: $512,228,000
5 Pasadena Water and Power
Market Data
6 Nationwide
Market-
Averaged
PPA Price
Index for
Solar in Q4
2023 is
$52.69
Pasadena Water and Power
RPS Position
7 0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Amount of RECs (MWh)
RPS Position with Bonanza
Total RECs from Current/Executed Resources Short-Term RFOs in Progress Bonanza Required RECS (SB 1020, 2023 IRP) Load Pasadena Water and Power
RA Position
8 0.00
50.00 100.00
150.00
200.00
250.00
300.00
350.00
400.00
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Amount of RA (MW)
Resource Adequacy Position with Bonanza
PWP's Total System RA (Only Executed Resources) Short-Term RFOs in Progress Bonanza Forecasted RA Requirement Pasadena Water and Power
Energy Position
9 -
200,000.00
400,000.00
600,000.00
800,000.00
1,000,000.00
1,200,000.00
1,400,000.00
1,600,000.00
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Amount of Electricity (MWh)
Net Energy Procured with Bonanza
Total Executed Portfolio Generation (MWh) Short-Term RFOs in Progress Bonanza System Load (MWh) - 2023 IRP Pasadena Water and Power
Estimated Electric System Average Rate Impact
Bonanza 2028
All-in Cost Estimate of Energy, RECs, and RA
105 MW of Solar +
55 MW of BESS
Price in $/MWh(solar) or $/kW-month(BESS)
$47.76/MWh (Solar) +
$16.84/kW-mo. (BESS)
Total Estimated Annual Cost $25,611,400
PWP Estimated Annual Sales (kWh) in first full year 1,147,591,770 $ Per kWh rate impact estimate $0.022
¢ per kWh rate impact estimate 2.2¢
Estimate impact to electric system average rate (23.72¢ per kWh base)* 9.4% Electric System Average Rate estimate includes PCA adjustments as of December 31, 2023 *Note: The estimated impact to the electric system average rate reflects the impact of the additional cost for the project. Other rate components, including expiring resources, have the potential to be highly variable and are not considered herein. Other components will be considered during the cost of service studies.
10 Pasadena Water and Power
0%
20%
40%
60%
80%
100%
120%
2023 2024 2025 2026 2027 2028
Forecasted Metrics - RPS, State Goal, % of Carbon Free of Total Portfolio Generation with Projects In-Progress RPS Percent - Executed, Projects In-Progress, Bonanza, Short-Term RFOs State Goal Percent - Executed, Projects In-Progress, Bonanza Total Percent of Total Generation Supplied with Clean Energy Forecasted Metrics with Bonanza and Projects In-Progress 11 2028
103% Clean Energy
State Goal of 100%
by 2045
2028
95% Renewable
Portfolio Standards (RPS)
State Goal of 60% by 2030
2028
95% Carbon Free
Generation of
Total Portfolio
Pasadena Water and Power
Forecasted Metrics at 2028 Waypoint Compared to IRP
Metrics IRP Forecast at 2028 Waypoint Trajectory for 2028 Waypoint as of February 26 (Today)
Difference between IRP
Forecast and Today’s
Trajectory
Clean Energy Position - State
Goal 100% by 2045 107% 103% -4%
Renewable Portfolio Standard -
State Goal 60% by 2030 97% 95% -2%
Percent of Carbon-Free
Generation over Total Portfolio 95% 95% 0%
GHG Emissions below 1990 levels
- State Goal 100% by 2045 87% 87% 0%
Hourly Carbon Free Position -
2023 IRP Goal 100% Carbon-Free
by 2030
55% 68% 13%
12 Pasadena Water and Power
Recommendation
• Authorize the City Manager, or his designee, to enter into a contract with SCPPA for the purchase of renewable energy and capacity from Bonanza Solar, LLC that includes daily delivery of a maximum of 105 megawatts of solar energy and up to four hours of dispatchable battery energy storage not to exceed 55 MW during a 20-year contract term beginning
December 31, 2027 for an amount not-to-exceed
$512,228,000.
13 Pasadena Water and Power
Backup Slides
Pasadena Water and Power
Forecasted Metrics at 2028 Waypoint
0%
20%
40%
60%
80%
100%
120%
Clean Energy Position - State Goal 100% by 2045 Renewable Portfolio Standard - State Goal 60% by 2030
Percent of Carbon-Free Generation Over Total
Portfolio
GHG Emissions below 1990 levels - State Goal
100% by 2045
Hourly Carbon Free Position - 2023 IRP Goal 100%
Carbon-Free by 2030
Forecasted Metrics for 2028 Waypoint
Executed Clean Resources Bonanza Clean Resources In Progress GHG Emission Reduction 103% Clean
Energy
95% RPS
Renewable Portfolio Standard
Percent of Carbon-Free Generation
95% of
Generation is
Clean
Reduction in Greenhouse Emissions
87% Reduction
from 1990
levels
Hourly Carbon-Free
68% Hourly
Carbon-Free
Clean Energy
15 Pasadena Water and Power
IPP Comparison
16 Component IPP Bonanza
RA (MW) 108 62.5
Energy 946,000 MWh (maximum
possible)
303,000 MWh
Renewable Energy
Credits (“RECs”)
No Yes
Annual Average Cost $60 million $25 million
Pasadena Water and Power
Methodologies of Metrics
Metric Description Formula
Percent Clean
Energy (State
Goal)
This percent shows how much of PWP’s
load is supplied with Clean Energy
Sum of All Qualifying Clean Electricity Supplied Annually (MWh)
Annual Load (MWh)
Percent RPS This percent shows how much of PWP’s
load is supplied with renewable energy
Sum of All Qualifying Renewable Electricity Supplied Annually (MWh)
Annual Load (MWh)
Percent of
Carbon-Free
Generation over
Total Portfolio
This percent shows how much of the
electricity PWP has contracted is
carbon-free
Sum of All Qualifying Clean Electricity Contracted(MWh)
Sum of All Contracted Electricity (MWh)
Percent
Reduction in
Greenhouse
Gases
This percent shows the reduction from
1990 levels of Greenhouse Gases which
was 918,622 metric tons. The
requirement is to reach 85% reduction
by 2045
Sum of Greenhouse Gases Emitted (Metric Tons)
918,622 Metric Tons
Percent Hourly
Carbon-Free
This percent shows how many hours in a
year are supplied with 100% carbon-
free electricity over the total number of
hours in a non-leap year (8760 hours)
Number of Hours Supplied with 100% Carbon-Free Electricity
8760 Hours
17 Pasadena Water and Power
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2023 2024 2025 2026 2027 2028
Forecasted Metrics - RPS, State Goal, % of Portfolio Generation without Projects In-Progress RPS Percent - Executed, Bonanza, Short-Term RFOs State Goal Percent - Executed, Bonanza Total % Carbon-Free Generation of Total Portfolio Generation Forecasted Metrics in Waypoint 2028 with Bonanza
18 Clean Energy %
2028
93% Carbon Free
Generation of
Total Portfolio
2028
79% Clean Energy
(State Goal 2045)
2028
71% Renewable
Portfolio Standards (RPS)
Pasadena Water and Power
Forecasted Reduction in GHG Emissions
69% 71% 73% 75%
82%
87%
-10%
10%
30%
50%
70%
90%
0 100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1990 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Reduction in GHG Emissions Compared to 1990 Levels
Actual Emissions Forecasted Emissions Statewide Reduction Target 2027
Exit of IPP Coal Project
82% Below 1990 Levels
2026 Waypoint
75% Below 1990 Levels
Statewide
Reduction
Target
2028 Waypoint and
Start of Bonanza
87% Below 1990
Levels
19 Pasadena Water and Power
Estimated Number of Homes Powered
• Bonanza will produce 303,534 MWh of electricity every year
• Typical Home uses ~500 kWh/month
> Conversion to MWh = 500 kWh/1000 = 0.5 MWh/month
> This is around 6 MWh every year
• Bonanza will provide Clean Energy to ~51,000 Homes
> 303,534 MWh/ 6 MWh = ~51,000
20 Pasadena Water and Power
Market Condition Updates
• Purchase Power Agreement (“PPA”) market has undergone significant changes with many factors shaping current trends:
> Tax credit financing and variations
> Import tariffs and trade policy uncertainty
> Inflation and rising interest rates
> Demand for renewable energy resources
> Supply shortages of renewable developments
> CAISO transmission queue requirements
> Land use assessments and environmental analyses
21 Pasadena Water and Power
Solar Proposals Prices Received
Bonanza’s Price Includes:
*FCDS (Provides RA) (Rare in
today’s market)
*In CAISO
*Reputable Developer (lowers
project risk)
*Provides Highest Quality of RECs
(PCC1s)
*Includes co-located Solar for
Storage
22 Pasadena Water and Power
Battery Proposal Prices Received
23 Bonanza’s Price Includes:
*FCDS (Provides RA) (Rare in
today’s market)
*In CAISO
*Reputable Developer (lowers
project risk)
*Provides Highest Quality of RECs
(PCC1s)
*Includes co-located Solar for
Storage
Pasadena Water and Power