City Council

(14) 25-0093 ENERGY AND ENVIRONMENT COMMITTEE REPORT and ORDINANCE FIRST CONSIDERATION relative to the execution of the Navajo Q255 Large Generator Interconnection Agreement 23-011 between the Los Angeles Department of Water and Power (LADWP), 302PN 8me, LLC, the United States (U.S.) Bureau of Reclamation, the Arizona Public Service Company, the Nevada Power Company, the Salt River Project Agricultural Improvement and Power District, and the Tucson Electric Power Company. Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: 1. APPROVE LADWP Resolution No. 025 138, adopted by the Board of Water and Power Commissioners (Board) on January 28, 2025, authorizing the execution of the Navajo 0255 Large Generator Interconnection Agreement - Contract No. 54483/DWP No. 23--011 between - LADWP, 302PN 8me, LLC, the U.S. Bureau of Reclamation. the Arizona Public Service Company, the Nevada Power Company, the Salt River Project Agricultural Improvement and Power District, and the Tucson Electric Power Company. 2. DELEGATE authority to the Board by ordinance and AUTHORIZE the Board to act on and approve all future amendments to the Interconnection Agreement pursuant to Charter Section 674. 3. AUTHORIZE, upon proper certification, the LADWP Chief Accounting Employee to draw demands on the Power Revenue Fund, in accordance with the terms of said Agreement. 4. PRESENT and ADOPT the accompanying ORDINANCE, dated February 2, 2025, approving the Large Generator Interconnection Agreement among 302PN 8me, LLC, and Arizona Public Service Company, the City of Los Angeles, acting by and through the LADWP, Nevada Power Company d/b/a NV Energy, Salt River Project Agricultural Improvement and Power District, Tucson Electric Power Company, and the U.S. Department of the Interior Bureau of Reclamation (Contract No. 54483, LADWP No. BP 23-011); and, delegating to the Board authority to amend said Agreement. Fiscal Impact Statement: The City Administrative Officer (CAO) reports that there is no impact to the General Fund. The LADWP has a 21.2 percent ownership interest in the Navajo 500 kV Switchyard and currently pays annual operating, maintenance and capital improvement costs of $560,000 for the Switchyard based on that ownership percentage. The approval of the proposed Navajo LGIA does not impact the LADWP Switchyard ownership percentage or annual operating costs and will therefore have no impact on the Power Revenue Fund. The above recommendations comply with LADWP’s Financial Policies.