Frequently Asked Questions
The Power Integrated Resource Plan (IRP) is the LADWP’s long range blueprint identifying its preferred future mix of electric resources for providing reliable, environmentally responsible electric service at competitive rates to its customers.
The 2010 IRP is LADWP’s long range plan for securing adequate generation resources in order to meet its obligation to provide adequate and low-cost electric service to Los Angeles. The IRP lays out a balanced set of near-term actions and long-term goals for increasing renewable and energy efficiency resources, reducing greenhouse gas emissions, and upgrading aging infrastructure.
The 2010 IRP uses a computerized production cost model to perform rigorous analyses to weigh the reliability, economic impacts and GHG reduction of alternative resource strategies (strategic options). These options are comprised of different combinations of assumptions and resource portfolios. The model runs were performed over the IRP’s 20-year planning horizon to find the least cost method of meeting the LADWP’s electric system demand using a specified generating resource mix.
A generation portfolio is a combination of supply and demand resource assets/additions selected for evaluation for meeting resource adequacy requirements over the planning period. The key assumptions used to define various portfolios include RPS target, compliance with GHG reduction requirements, coal replacement, renewable strategy, in-basin repowering, and energy efficiency penetration.
A strategic option is created by combining a single generation portfolio with a given future scenario. A scenario is a set of unique future conditions, such as an assumed set of future fuel prices. Using production cost modeling analysis, each strategic option is evaluated against criteria that include cost, reliability, and environmental benefits. A set of strategic options is developed from which a preferred option is selected considering trade-offs among the criteria.
Energy Efficiency (EE) resources are incorporated into the resource portfolios of all strategic options modeled in the 2010 IRP. The appropriate EE forecast used was based on results from the most current EE investigation commissioned by LADWP. Known as “Market Potential Studies”, these investigations are conducted periodically by law. Future IRPs will incorporate the findings of the latest available Market Potential Study.
Short-term actions are activities that LADWP must undertake within the next five years to maintain the reliability of LADWP’s Power System. These activities need to occur regardless of the composition of the long-range resource portfolio ultimately selected. Long-term goals refer to LADWP’s 20- year resource strategy based on results from the modeling analysis and IRP process. The conclusions from this long-term analysis, however, are heavily dependent on a number of assumptions that are subject to change. As such, integrated resource planning is an on-going process. The LADWP plans to continuously adapt and refine the IRP as uncertainties are better understood, and policy direction and requirements evolve. A new IRP will be issued every two years.
