CLIMATE LITERACY 201: Energy and Greenhouse Gas Emissions William Forsythe, Chief, Power Planning Branch SWP Power and Risk Office

Power vs. Energy POWER is the RATE at which work is performed - - energy is generated or consumed 1 MegaWatt = 1,000,000 Watts (MW) 1 MW can serve ~ 1,000 homes with electricity One Edmonston pump uses 60 MW

Power vs. Energy ENERGY = amount of power produced or consumed over a period of time 1 MW generated for one hour = 1 MWh

To get 100,000 MWh Annually, You Need: Typical Capacity Factor Size of Facility Resource(MW) Natural Gas Wind Solar Bio Mass Geothermal Technology Matters Capacity Factor

SWP PUMPING AND GENERATING SWP is the largest single power consumer in California  Pumping capacity  Pumping capacity = 2,600 MW  6 million to 9.6 million MWh consumed to move water  40% to 60% from our own hydro resources SWP Pumping

SWP GENERATION SWP is the third largest generator of clean hydropower in CA  Generation capacity = 1,700 MW  4 million to 7 million MWh generated  Produces about 14% of California’s hydropower

Comparison to CA Utilities 4% of CAISO Load Consumes 3% of all electricity used by CA electric utilities 6 th largest CA electrical consumption by utility Only about 9% size of PG&E SWP Comparison to CA Utilities

Benefits to the Grid SWP’s off-peak pumping = fewer plants are cycling up and down Less on-peak pumping reduces the stress on the grid Limitations:  Delta restrictions  Water deliveries drive power schedules Benefits to the Grid

2011 SWP Pump load 8,508 Million MWh

Energy Used to Deliver Water Energy Used to Deliver Water Inc. Transmission Losses Data from SWPAO for Allocating Off-Aqueduct Power Facility Costs 7/20/11 MWh per acre-foot (a) Pumping PlantsAtCumulative Plantfrom Delta Barker Slough. 223 Cordelia Benicia Cordelia Vallejo Cordelia Napa Harvey O. Banks (Delta). 296 South Bay Including Del Valle Dos Amigos Buena Vista Teerink Chrisman A.D. Edmonston Pearblossom Greenspot Crafton Hills Cherry Valley Oso Las Perillas Badger Hill Devils' Den Bluestone Polonio Pass

Greenhouse Gas Emissions

Transportation, 40.7% Ag & Forestry, 8.3% Industrial, 20.5% Electric Power, 21.6% SWP, 0.6% Others, 8.3% GHG Emissions in California Sources of CA’s 2004 GHG Emissions By End Use Sector

2007 – 2009: California Climate Action Registry. Verified 1 of only 5 state agencies to achieve this status 2010 : The Climate Registry. Completing verification Reported 2011 emissions. Starting on 2012 reporting Annual reporting of energy use to Air Resources Board GHG Emissions Reporting

THE CLIMATE REGISTRY Nonprofit collaboration sets consistent and transparent standards to calculate, verify and publicly report GHG emissions into a single registry

50% reduction below 1990 levels by 2020 which exceeds AB 32 goal 80% reduction below 1990 levels by 2050 DWR Emission Reduction Goals

LODI ENERGY CENTER 296 MW Combined Cycle Natural Gas Power Plant Highly efficient 13 Public Participants DWR share 99 MW 33% of facility $140 Million DWR investment Operational Nov 2012

Fast start technology Ramp up and down quickly Help provide firming power for renewable energy that is generating intermittently

Termination of Coal-Fired Resource Four units at the Reid Gardner Facility in Nevada SWP has 67.8% equity ownership of Unit 4 (a 275 MW unit) Expires July 25, 2013

Comparison to CA Utilities Feb 2013 executed 20-year power purchase agreement 45 MW solar project with delivery start in 2015/16 Oct 2012 executed a 4 year power purchase agreement 28.3 MW geothermal and 5.3 MW landfill gas Renewable Energy Contracts

The Future of the California Aqueduct ? 21

22 Usable 68 acres ±10 MW of solar Higher elevation Already secured area Env. Surveys completed Interconnection application to SCE Solar at Pearblossom Pumping Plant

Decreased power use – 40,000 MWh annually Energy savings equivalent to a 24-acre solar farm Edmonston Pump Replacement Project

Other “Green” Activities Wind and Solar RFPs Development of small hydro Testing of in-aqueduct hydrokinetic generation Governor’s Climate Action Team Other Greening Activities

Cap and Trade for Emission Allowances Final regulation adopted by CARB 10/20/11 Generator or importer will need to obtain and retire GHG credits equal to the amount of GHG produced beginning with 2013 emissions 1 allowance = 1 MT CO2e

Emission Allowances 90% allocated free to retail load serving utilities SWP specifically named in the regulation SWP will NOT receive any free emission allowances 10% retained by CARB Oct 2012 auction Floor price of $10/MTCO2e Containment reserve $50/MTCO2

Cost and Use of Allowances Allowances reduced by 2% per year thru 2020 SWP Direct and Indirect Costs estimated to be $23 M in 2013 Direct cost ~$ 8 M Indirect cost ~$ 15 M Use of allowances: o Still being developed o Renewables? o Energy efficiency? o Rebates?

 SWP has a GHG policy that will meet or exceed all AB-32 milestones  SWP provides strong public benefits to the California electrical grid the California electrical grid  DWR is pursuing a suite of tools to reduce GHG: Acquiring renewable energy resources Acquiring renewable energy resources Refurbishing pumps and generators Refurbishing pumps and generators to improve energy efficiency to improve energy efficiency Switching from coal to cleaner natural gas resources Switching from coal to cleaner natural gas resources Developing small hydro Developing small hydro Summary of Actions