A solar energy company is offering to charge L.A. the lowest price ever paid for solar power in the U.S. Why isn’t this contract a no-brainer for the city?
Los Angeles has been sitting on a contract for record-cheap solar power for more than a month — and city officials declined to approve it Tuesday because of concerns raised by the city-run utility’s labor union, which is still fuming over Mayor Eric Garcetti’s decision to shut down three gas-fired power plants.
The combined price to L.A. ratepayers of the solar and storage would be 3.3 cents per kilowatt-hour — also a record low for this type of contract.But LADWP’s board of commissioners voted not to send the contract to City Council for approval, after utility staff said concerns had been raised by the International Brotherhood of Electrical Workers Local 18, which represents utility employees.
He also noted that Los Angeles has an option to increase the amount of battery storage from 200 megawatts to 300 megawatts, for an additional cost. That would bring the solar-plus-storage price to 3.96 cents per kilowatt-hour — still cheaper than electricity from gas under most circumstances, based on cost estimates from the U.S. Energy Information Administration and the investment bank Lazard. And the plant’s capacity factor would rise to 60%.
Asked about the union’s opposition, an IBEW Local 18 spokesman sent a short emailed statement saying that LADWP “has not complied with its contractual obligations for this deal.” The statement didn’t provide details of how the utility hasn’t complied.“Local 18 is at the forefront of building some of the largest renewable energy projects in the state, however concerns needed to be raised,” he said.
Two LADWP commissioners, board president Mel Levine and Jill Banks Barad, voted to approve the Eland contract on Tuesday, with the understanding that utility staff would meet with the union this week to hear their concerns. But Cynthia McClain-Hill voted no, and Susana Reyes, a recent Garcetti appointee, abstained. With the fifth commissioner, Christina Noonan, absent, there wasn’t a majority to approve the contract.
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