Pasadena City Council
October 28, 2024

Pasadena Water and PowerINFORMATIONAL UPDATE ON THE PASADENA WATER AND POWER’S OPTIMIZED STRATEGIC PLAN TO ESTABLISH A ROADMAP TO MEET THE GOALS SET FORTH BY CITY COUNCIL’SADOPTED RESOLUTION 9977City CouncilOctober 28, 2024Item 22 Pasadena Water and PowerCity Council Policy & DirectionCity Council Passes Resolution 9977 January 30, 2023
Declared a climate emergency
Set the goal to source 100% of Pasadena’s electricity from carbon-free sources by the end of 2030 City Council Approves PWP’s Integrated Resources Plan
December 11, 2023
Upon approval of the IRP, City Council issued guidance•Use a third-party with expertise in green energy•City Manager’s Office to assist with the oversight of the development of an Optimized Strategic Plan (OSP)2 Pasadena Water and Power
84%76%83%13%11%2%5%4%4%0%20%40%60%80%100%120%Pasadena's Progress Towards 100% Carbon-Free Electricity by 2030(Forecast as of October 22, 2024) Executed
Grace
In-Progress
Forecasted Progress – Key Metrics102%91%89%
3METRIC #1Senate Bill 100100% Renewable and Zero-carbon by 2045METRIC #2Carbon-Free GenerationCarbon-Free % of Total Annual Energy PortfolioMETRIC #324/7 Hourly MatchingAverage Hourly Carbon-Free*Note Forecasted metrics presented are subject to change at anytime due to updated information Update for City CouncilOctober 28, 2024Development of an Optimized Strategic Plan for Pasadena Water and PowerNick Schlag, PartnerMike Sontag, DirectorNathan Lee, Sr. Managing ConsultantMichaela Levine, Sr. Managing Consultant 5 About Energy & Environmental Economics, Inc. (E3)Technical and Strategic Consulting for the Clean Energy Transition250+projects per year focused on energy & climateenvironment 100+consultants across 4offices with expertise in economics, mathematics, policy, modeling San FranciscoNew YorkBostonCalgary

6 In January 2023, Pasadena City Council passed Resolution 9977, setting ambitious goals for the city amidst a climate emergencyGoal to source all electricity from carbon-free sources by 2030 far exceeds requirements of California state policy•Establishes City of Pasadena as a leader on climate change in a state with already aggressive policy goals•Requires a head-on confrontation with a series of technical challenges well-established in literature regarding the transition to a carbon-free electricity system Context for the Need for an Optimized Strategic PlanSection 3. The City Council hereby sets a policy goal to source 100% of Pasadena's electricity from carbon free sources by the end of 2030. Section 4. The City Council hereby directs the City Manager to utilize the 2023 IRP process to plan multiple approaches to transition to the goal described in Section 3 and to optimize affordability, rate equity, stability, and reliability of electricity while achieving this goal.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PASADENA, CALIFORNIA DECLARING A CLIMATE EMERGENCY AND SETTING A GOAL TO SOURCE 100% OF PASADENA'S ELECTRICITY FROM CARBON FREE SOURCES BY 2030 7 The Optimized Strategic Plan is……a roadmap that lays out the key steps and future decision points that will best position PWP to achieve its goal to source all electricity from carbon-free sources by the end of 2030 while maintaining reliability and limiting cost impacts to customersThe Optimized Strategic Plan will……consider how new generation resources, investments in T&D infrastructure, and customer programs can facilitate transition to Pasadena’s carbon-free goal Defining “Optimized Strategic Plan”
8 Balance of Carbon-Free Energy Resources based on Currently Executed Contracts Hourly Carbon-Free Electricity vs. Hourly Load200%175%150%125%100%75%50%25%0%2030 Carbon-Free Electricity Supply (Executed Contracts Only)Additions: Coso Geothermal (11 MW), Geysers Geothermal (25 MW), Sapphire Solar/BESS (50 MW/25 MW), Bonanza Solar/BESS (105 MW/55MW), Glenarm BESS (25 MW), Calwind (20 MW)2025 Carbon-Free Electricity SupplyJan 1 Day of Year Dec 3112am12pm12am12am12pm12amJan 1 Day of Year Dec 31Not an OSP result – based on data underlying metrics presented by PWP to MSC July 9Annual average (“Metric 3”): 25%Annual average (“Metric 3”): 83% 9 Phase 1Preparatory StudiesIdentify and characterize all potential resource optionsPhase 2Portfolio DevelopmentUse detailed power system modeling to construct multiple portfolios that meet clean energy goals and maintain reliabilityPhase 3Impact AssessmentCalculate cost metrics; identify feasibility concerns, dependencies, and risks of each portfolioResultOptimized Strategic PlanInformed by technical analysis, develop an action plan.Distributed Solar and StorageNew & Emerging TechDemand Response + Flex LoadsTransmission OptionsGlenarm Conversion/ ReplacementLong-Term Capacity ExpansionProduction Cost ModelingDistribution System AnalysisCost ImpactsOptimized Strategic Plan: Study WorkflowAction Plan/ Final ReportTechnical AnalysisSynthesis 10 Optimized Strategic Plan: Project TimelineJunMayAprMarFebJanDecNovOctSepAugJulJunMayDistributed Solar & StorageDR/Flex Loads PotentialEmerging TechnologyTx Expansion OptionsGlenarm Conv/ReplacementLT Capacity ExpansionProduction CostDistribution SystemCost ImpactsFinal ReportTechnical Advisory Panel MeetingsMunicipal Services Committee / Environmental Advisory Committee MeetingsPotential Community Meeting 11 Additional variations explored to provide PWP and City Council with robust analyses to inform the Optimized Strategic Plan:Accelerated Distributed Energy Resources (DER): What are the comparative impacts of portfolios that accelerate the deployment of DER while preserving Glenarm Power Plant as a backup for reliability?Timing: How does each strategy change if transition to carbon-free occurs less rapidly?•Opportunity to synchronize transition with transmission expansion•More plausible timelines for technology readiness for emerging technologiesMarkets: How does short-term market transaction flexibility impact these case studies, if PWP's owned and contracted generation is carbon-free? Three Core Case Studies to Achieve Resolution 9977 Goals Common methods & assumptions across all three case studies:•Natural gas combustion at Glenarm ceases by end of 2030 (either converted to H2or replaced)•No reliance on wholesale market purchases (“24x7 carbon free electricity”)•Quantities of each resource optimized in each case study to meet reliability needs and carbon-free objectives New Resource Options to Meet 2030 GoalsCase StudiesBattery StorageLoad FlexibilityGeother-malLand-Based WindSolar PV (Distributed & Utility)Mature Technologies OnlyGreen Hydrogen (H2) Conversion at GlenarmBattery StorageLoad FlexibilityGeother-malLand-Based WindSolar PV (Distributed & Utility)Mature Technologies + Green HydrogenLong-Duration Energy StorageBattery StorageLoad FlexibilityGeother-malLand-Based WindSolar PV (Distributed & Utility)Mature Technologies + Long-Duration Storage 12 OSP supporting studies focus on development and analysis of “case studies” which model unique combinations of resources to meet PWP future needsGoal of analysis is not to select a single case study as the Optimized Strategic Plan, but to synthesize learnings across all cases to inform creation of an OSPMultiple Case Studies Developed and AnalyzedVarying technology setsRole of Case Studies in Development of the Optimized Strategic Plan Results of Technical Analysis SynthesizedCommon themes across case studiesRelative cost impacts“Least regrets” actionsKey risks & uncertaintiesPath dependencies, tools to preserve optionalityOptimized Strategic Plan Created“ …a roadmap that lays out the key steps and future decision points that will best position PWP to achieve its goal to source all electricity from carbon-free sources by the end of 2030 while maintaining reliability and limiting cost impacts to customers” Thank YouNick Schlag, [email protected]