Renewable Energy Development

GWP has a long history of supporting renewable energy. In 1937 Glendale became one of the first California cities to contract with the Federal Government to purchase hydropower from Hoover Dam, and we've been generating electricity using landfill gas from Scholl Canyon since 1994. More recently, GWP has made long term investments in wind and geothermal generation resources, and we are in the process of building a 261 KW solar photovoltaic generating system on top of the new parking garage being constructed at the local community college.

To show our continued commitment to renewable resource development GWP adopted a Renewable Portfolio Standard (RPS) in 2004. The GWP RPS recognizes the intent of the Californian Legislature to encourage renewable resources, while taking into consideration the effect on rates, reliability, financial resources, and the goal of environmental improvement. The new GWP RPS sets an initial goal of 20% of its annual energy requirements from renewable energy sources by 2017, with the additional goal of 23% if it can be reached at reasonable cost.

Today, GWP proudly provides approximately 14% of its energy requirements from renewable resources on an annual basis as follows:

GWP's Renewable Resources

Resource	Type	Capacity (MW)	Max Energy (MWh/year)
Hoover	Hydro	20	68,000
High Winds Generation	Wind	3	26,208
Southwest Wyoming Wind Generation	Wind	10	29,000
Gould	Geothermal	1	8,400
Scholl Landfill	Landfill Gas	8	70,080

Detailed Information on GWP's Renewable Resources

Hoover & Other Hydro Providers

The GWP entitlement in the Hoover Dam Power Project totals 20 MW. This resource is formally purchased from Western, and consists of an up-rated portion of the plant of 2 MW and a renewal portion of 18 MW, with annual associated energy of approximately 2,000 MWh and 66,000 MWh, respectively. This contract remains in effect until October 1, 2017.

Additionally, GWP owns and operates the Verdugo Metropolitan Hydroelectric Plant, a small hydroelectric generating plant designed to operate in conjunction with the Verdugo Metropolitan Pump Station. This plant is rated at 400 kW and initially had an average yearly production of 1,015,690 kWh. Recent water conservation efforts, however, have resulted in reduced water flow which has brought the average yearly production down to approximately 600,000 kWh. This lower energy production is sufficient to sustain the electrical energy needs of the pump station. Any excess energy is integrated into the GWP electrical distribution system.

Scholl Canyon Landfill

In July, 1994, GWP completed a 5-mile pipeline that transports methane gas produced at Scholl Canyon landfill to the steam boilers at the Grayson Power Plant. Starting in July, 1994, Grayson Units 3, 4, or 5 have generated power using this methane at a minimum loading of approximately 8 MW. Any additional output from Units 3, 4, and 5 is fueled by natural gas. During fiscal year 2006, the Grayson Power Plant generated approximately 70,080 MWh from Scholl Canyon landfill gas. The U.S. Department of Energy awards a Renewable Energy Production Incentive payment for energy produced from Scholl Canyon landfill gas.

High Winds Generation Facility (PPM1 Wind Project)

GWP has signed a 25-year power purchase contract with PacifiCorp Power Marketing, Inc. (PPM) for the purchase of wind powered electrical energy associated with a 9 MW share of the 145.8 MW High Winds wind generation facility located in Solano County, California. The contract allows GWP to have power delivered at a flat 3 MW based on a 33% capacity factor. Therefore, this resource will provide 26,208 MWh of renewable energy on an annual basis to GWP customers. This contract commenced on September 1, 2003.

Gould Geothermal Power Project

GWP has signed a 25-year contract with SCPPA for the purchase of up to 3 MW of geothermal power. The project is located in the geothermal areas of Imperial Valley, California. This contract commenced in February, 2006 at the current level of 1 MW. A potential of an additional 2 MW is provided for in the contract. Currently, GWP receives approximately 8,400 MWh of renewable energy on an annual basis from this project.

Southwest Wyoming Wind Generation Facility (PPM2 Wind Project)

GWP has signed a 16-year power purchase contract with PPM. This 2nd wind power contract with PPM will provide up to 10 MW of capacity at a 33% capacity factor from a generation facility located in Southwest Wyoming. The contract commenced in July, 2006, and currently provides approximately 29,000 MWh of renewable energy on an annual basis to GWP's customers.

Grid-Connected Photovoltaic Power Generation

GWP is committed to exploring new renewable energy options for its customers. GWP currently offers rebates for customers to install grid-connected photovoltaic power generation systems. These systems require an interconnection agreement that allows GWP to buy any excess power from the customer. To date, in cooperation with various residential and commercial customers, approximately 120 kW of grid-connected photovoltaic generation has been installed on various structures within the City.

Future Renewable Energy Investment Possibilities

• Partnering with the Southern California Public Power Authority to review and evaluate proposals for renewable energy with an eye toward obtaining an additional 3 to 10 MW of renewable generation.
• Working with other utilities looking into the possible development of the Green Path North transmission line emanating from the Imperial Valley with the goal of providing a route to receive geothermal power
• Upgrading the STS transmission line to provide a route to receive additional renewable power from the Wyoming-Utah area into Southern California.
• Working with the local community college to install a 262 kW grid-connected photovoltaic system on the new college parking structure. This system will be owned and operated by GWP, and has an expected completion date of summer 2007.