BOULDER CANYON PUMPED STORAGE PROJECT Sam Mannan Project Manager Dept. of Water and Power (LADWP) Agenda

Background Why Energy Storage? Duck Curve and Renewables

LADWP’s Experience in Pumped Hydro - CASTAIC LADWP and Hoover

The “Boulder Canyon Pumped Storage” Project Ongoing Assessments

Key Challenges Conceptual Timeline

2 LADWP Overview

• Largest municipal utility in the USA • 1.5 Million power customers & 680,00 water customers • Owns more than 25% of state’s transmission lines • Reached 20% renewables in 2010; well-positioned to meet state-mandated level of 33% by 2020

3 Utility Description

• LADWP is a vertically integrated utility: – LADWP owns and operates its own generation, transmission, and distribution system – Glendale and Burbank are within LADWP’s Balancing Authority Area

4 State Mandates

Regulation Description SB100 - Achieve the 50% by December 31, 2026 - Achieve a 60% target by December 31, 2030 - Policy that eligible renewable energy and zero-carbon resources supply 100% by December 31, 2045. Once Through Cooling (OTC) - Assess the extent to which scheduled OTC units are vital to maintain system reliability and resource adequacy - Determine viable alternative solutions to repower OTC units without sacrificing system reliability, and perform cost-benefit analysis for each alternative SB1339 - Requires publicly owned utilities to develop a standard interconnection process and tariffs, as necessary, within 180 days of a request from a customer or developer - Microgrids may include energy storage, forecasting, demand response, etc. Any resource that meets Air Resource Board (CARB) standards AB2514 - Requires LADWP to set its ESS procurement targets if it is viable and cost effective - First target date - December 31, 2016 - Second target date - December 31, 2021 SB32 - CARB shall ensure that the Statewide Green House Gas (GHG) emissions are reduced to at least 40% below 1990 levels by 2030

5 Background

• Clean energy policy goals along with legislative efforts to decarbonize power resource supplies are generating significant amounts of excess solar and wind energy for utilities throughout the Southwest

• While LADWP has deployed batteries as one of several energy storage options, hydro-based Pumped Storage is a proven technology that can be cost effective and potentially less environmentally impactful

• To date, LADWP has installed 22.6 MW of new energy storage and is currently evaluating a wide range of energy storage options including pumped storage

6 Energy Storage Technologies

Types of Energy Storage Lithium Polymer Batteries

Lithium Ion Batteries #1 Chemical Sodium Sulfide Batteries

Flow Batteries Chillers, Ice #2 Thermal Hot Water Heaters

Pumped Storage #3 Gravity Train Rail

Flywheels #4 Mechanical-Kinetic Compressed Air

7 ‘Duck Curve’ Ramping Challenge

8 Renewable Curtailment in California

Note: LADWP is not having this challenge today. 9 Castaic Power Plant – 1250 MW

- Castaic is sited on west branch of California State Aqueduct

- The Project is a cooperative venture between LADWP and the California Department of Water Resources (DWR)

- Castaic follows LADWP system load and provides for spinning reserve requirements

10 Castaic Pumped Storage Plant

Pyramid Lake - Upper

30 ft. diameter power tunnel 7.3 miles long

One 55 MW Pelton unit for pump starting and load following

Six 271 MW reversible pump-turbines

Elderberry Lake - Tailbay

Castaic Lake - Storage reservoir

11 LADWP and Hoover

• Since 1937, LADWP is an original participation of the Hoover . LADWP also operated the plant.

• Currently LADWP is committed to participate through 2067.

• Hoover is accounted for both electric “generation and capacity” in LADWP’s energy portfolio.

• LADWP, together with the other Hoover Contractors, continues to participate in the Lower Colorado River Multi-Species Conservation Program.

• Hoover provides base load, carbon neutral, hydro electric energy at a very competitive rate.

12 Hoover Hydro Electric Power Plant

13 14 15 Boulder Canyon Pumped Storage

CONCEPTUAL

16 Boulder Canyon Pumped Storage

CONCEPTUAL

17 Proposed Routes

18 Proposed Routes

19 Recap - Meetings Held to Date

Bureau of Reclamation – Lower Colorado • Dr. Terry Fulp, Regional Director • Jacklynn Gould, Deputy Regional Director • Len Schilling, Area Manager • Theresa Saumier, Manager, Facilities Services • Daniel Bunk, Boulder Canyon Operations Office (Water Operations) • Marc Maynard, Resource Management Office (Land and Environmental) • Mike Bernardo, Region Director Special Assistant

National Park Service

• Lizette Richardson, Superintendent

• Mike Boyles, Lands, Planning, and Compliance Specialist

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Arizona Power Authority U.S. Dept. of the Interior • Ed Gerak, Exec. Dir. • David Hayes, Former Deputy • John Underhill, Interim Deputy Secretary Director • Michael Connor, Former • Linda Sullivan, Sr Deputy Secretary Rate Analyst

Colorado River Board • Christopher Harris, Exec. Director Colorado River Commission • Jayne Harkins, Exec. Dir.

• Douglas Beatty, Chief Finance Southern California Public Power Authority (SCPPA): and Administration • Michael Webster, Exec. Dir. • Christine Guerci, Special Council

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• Southern Nevada Water Authority Colby Pellegrino (Colorado River Program Manager) Greg Walch (General Counsel) • Las Vegas Valley Water District John Entsminger (GM) Dave Johnson (DGM) • WAPA Jack Murray, Vice President of Power Marketing • Boulder Canyon Coordinating Committee • Metropolitan Water District of Southern California Jon Lambeck, Manager of Power Operations and Planning Ann Finley, Principal Engineer • Metropolitan Water District of Southern California Jon Lambeck, Manager of Power Operations and Planning Ann Finley, Principal Engineer

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Conceptual Proposal Criteria’s

Location - TO and FROM

Leveraging to Increase Capacity Factor

Hydraulic Model Assessment

Production Model - Initial Cost

23 New Partnership

• The project requires “new partnership” for successful implementation • There will be consequences, but we want them to be good consequences.

24 LADWP Internal Groups Collaboration

City Attorney Office Laboratory and Financial Test Lab Services

Right-Of-Way Environmental

Project System Real Estate Team Planning

External Mechanical Generation Engineering

AC/DC Civil Substation Engineering Design Structural Engineering

25 LADWP – New Group of Six Engineers

LADWP Management Senior AGM/COO/Director

Sam Mannan (Project Manager)

Vanessa Omar Torres Manuel Walker Eric Escamilla Environmental City Attorney Gonzalez

Joe Avila Consultants (Staff to GM) (TBD)

26 Ongoing Tasks Hydraulic Head Loss Calculations Studies: Water Allowances Effects to Downstream Water Supply Water Schedule – Impact and Integration Pump Sizing Operational Characteristics

27 Ongoing Tasks Engineering System Impact Study Assessment: Short Circuit calculations Facilities Study Piping Vs. Tunneling Major Equipment /Ratings Transmission Accessibility Substation Location Pump Sizing / Locations Electrical Integration System Impact

28 Major Challenges

Recreational Federal/State Environmental Forest Services Activities Local Approval Businesses

MSCP Hydraulic No (Multi-Species Water Rights Adverse Water Partnerships Conservation Affects Program)

Renewable MW vs Cost RPS Right-of-Way Accountability Payback

29 Conceptual Timeline

2018- Outreach/planning/feasibility/engineering/financial 2022

2022- 2024 Environmental Impact Study & Reports

2024- 2028 Construction

2029 Testing

2030 Commissioning

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