October 24, 2006
ROSEMEAD, Calif., October 24, 2006 – Southern California Edison (SCE) and the Los Angeles Department of Water & Power (LADWP) have reached an agreement in principle that resolves issues associated with the construction of the Devers-Palo Verde No. 2 Transmission Line (DPV2).
DPV2 is a planned 230-mile, high-voltage (500 kV) electric transmission line between California and Arizona with an expected rating of at least 1200 MW. SCE has applications for construction of DPV2 pending with the California Public Utilities Commission and the Arizona Corporation Commission.
The agreement allows SCE to build DPV2 and places the transmission facility under the California Independent System Operator’s operational control. To meet its needs, LADWP would continue to receive transmission service over SCE’s existing transmission lines in accordance with amendments to an existing 1987 contract. A final settlement agreement, based on this agreement in principle, will be prepared and is subject to the approval of LADWP’s governing bodies and the Federal Energy Regulatory Commission.
Ron Litzinger, SCE’s senior vice president of transmission and distribution, said that DPV2 is a critical component of SCE’s and LADWP’s integrated approach to meeting the future energy needs of their customers, which includes:
- Encouraging energy-efficient use of electricity, which reduces the demand for electricity;
- Increasing the procurement of renewable energy, such as solar, geothermal, and wind;
- Strengthening the interconnected electrical grid, including between California and Arizona;
- Accessing cost-effective sources of electricity, including power sources located inside and outside of California; and
- Building and maintaining reliable and cost-effective electrical transmission and distribution systems to deliver power to customers.
“SCE is pleased to reach agreement in principle with LADWP on this important project,” Litzinger said. “SCE believes that a robust transmission system is essential to providing customers with reliable and affordable power. DPV2 will significantly increase access to cost-effective energy from the southwest into California. In addition, it will provide benefits to Arizona such as increased system reliability, greater fuel and load diversity, improved resource utilization, and enhanced generation investment climate.”
“LADWP is pleased to reach an agreement in principle to support the expansion of critical transmission capacity into Southern California, while protecting the rights and value of these assets for our customers,” said Enrique Martinez, LADWP chief operating officer – power. Under the agreement, LADWP would be able to continue transmitting energy from the Palo Verde Generating Station in Arizona to Los Angeles utilizing the existing transmission path and also stabilize the future cost of power transmission through this key path.
Additionally, the agreement would provide LADWP with the right to connect a critical new transmission line being developed to deliver geothermal and other renewable energy from the Imperial Valley to Los Angeles. This new transmission project called Green Path North Project and DPV2 will be the first major transmission projects to be constructed in 15 years to enhance the power delivery and reliability of the transmission grid of the Southwestern U.S. LADWP and SCE have agreed to work cooperatively in the development of their respective projects and in the development and approval of a final settlement agreement.
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An Edison International (NYSE:EIX) company, Southern California Edison is one of the nation’s largest electric utilities, serving a population of more than 13 million via 4.7 million customer accounts in a 50,000-square-mile service area within central, coastal and Southern California.
The Los Angeles Department of Water and Power, the nation’s largest municipal utility, provides reliable, low-cost water and power services to Los Angeles residents and businesses in an environmentally responsible manner. LADWP services about 1.4 million electric customers and 680,000 water customers in Los Angeles.