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

POWER CONTENT LABEL 3 First Quarter 2007 POWER CONTENT LABEL LADWP 2005 CA ENERGYPower* Green Power** POWER MIX*** RESOURCES (projected) (for comparison) Eligible Renewable****8%100%5% -- Biomass & waste1%-<1% -- Geothermal<1%-4% -- Small hydroelectric6%25%1% -- Solar<1%- -- Wind1%75%<1% Coal47%-38% Large Hydroelectric7%-24% Natural Gas29%-33% Nuclear9%-0% Other<1%-0% TOTAL100% * 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 for File No (RPS). For specific information about this electricity product, contact LADWP at DIAL-DWP. For general information about the Power Content Label, contact the California Energy Commission at or Renewable Energy 2007 Projections, Eligible Renewable Energy in 2002 ~3%

4 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, – 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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77 DWP Renewable Energy Projection by Type 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.

88 Location of Proposed Renewable Energy Projects and LADWP Transmission 8 Wind Biomass Solar Geothermal Small Hydro INYO-RINALDI 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 PPM SW WY SCPPA3 / Wind

9 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  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.

SCPPA RFP Projects, after initial screening Resource Type Total Capacity % of Total Biomass % Geothermal % Solar Trough % Hydro % Wind % Total151,381 Inside CAOutside CA %40.3%  SCPPA Renewable Energy Committee members are further analyzing proposals for individual City requirements.  Term sheets being negotiated for several projects noted above

11 Inyo - Rinaldi Line Upgrade Project Pine Tree 120 MW 2007 COD Wind MW 2009 COD Wind MW 2008 COD Barren Ridge Pine Tree Wind # 3 Substation To Cottonwood/Inyo To Rinaldi To Castaic

12 Southern Transmission System (STS)

13 (2) (7) (4) GREEN PATH

14 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.