Statement by LADWP regarding council motions concerning Alton Coal Mine expansion and Clean Air Act standards

We agree with the spirit in which the motions before the City Council have been offered. The LADWP is 100% committed to eliminating coal, and complying with other environmental mandates that will result in the LADWP increasing its renewable energy level to 33% by 2020, further reducing CO2 emissions, eliminating the use of ocean water to cool our three coastal power plants, and increasing energy efficiency to between 10% and 15% by 2020.

Our Integrated Resource Plan is clear on these mandated goals and the complex implementation path necessary to meet them.

We have already achieved remarkable progress toward them.  LADWP’s C02 emissions are 23% below 1990 levels.  We accelerated our renewable energy program and achieved 20% renewables delivered to our customers by 2010, faster than any other California utility and we are on track to meet interim renewables targets.

We are currently spending $700 million to rebuild two generating units at our Haynes Power Plant in Long Beach to eliminate ocean cooling from those units, the first of nine units that will cost our customers an estimated $2.3 billion over the next 17 years, and we are committed to divesting our share of the Navajo Coal plant by 2015, four years ahead of the legally mandated deadline, in a manner that protects our customers rates and reliability.

As we transform 70% of our energy supply over the next decade, we will be in a period of transition.  We must be careful to ensure realistic compliance deadlines, understand the technical and operational risks, and not to do anything that will affect our ability to reliably provide power, or lead to unnecessarily high costs for our customers.

The LADWP supports the Clean Air Act standards, provided they are implemented according to a timeframe that is physically and technically achievable.  With respect to privately held Alton Mine in Southern Utah, there is a regulatory permitting process underway in Utah and at the federal level where all environmental factors will be considered and evaluated.