2022 Utility Trends Recap: Operation NEXT, LA100, Green Hydrogen and More

2022 Utility Trends Event – November 9, 2022 from LADWP on Vimeo.

In November, LADWP’s largest customers came together to learn about the projects and initiatives shaping LA's green future at the fifth annual Utility Trends workshop. From Operation NEXT to LA100 to green hydrogen, this year’s speakers shared a glimpse into what a sustainable and carbon-free future will look like for Los Angeles, and how these advances may impact our Key Account customers.

In her keynote remarks, Los Angeles Board of Water and Power Commissioner Nicole Neeman Brady highlighted how LADWP is working to support our largest customers as we transition to becoming an even more resilient and environmentally friendly utility. She shared information about our popular, new, and recently updated programs—such as our EV charging program, Zero-by-Design, and the increased rebate rates for the Turf Replacement Program and Technical Assistance Program—and dove into the specialized rates available for commercial customers.

Director of Legislative and Intergovernmental Affairs Matthew Hale discussed legislation and governmental changes at the federal, state, and local levels that will impact LADWP and its customers, including the recent local elections. Two significant bills at the federal level made available funding for water infrastructure, power grid reliability and resiliency, and drought response. Newly passed state bills impact statewide carbon-neutrality and renewable energy targets, provide arrearage relief for customers, and establish requirements for fleets to be Zero Emission/EV.

Green hydrogen is the most viable technology today for clean generation that can be dispatched as needed, shared Manager of Resource Planning and System Resiliency Nermina Rucic-O’Neill. In her discussion of the LA100 study, she provided a look ahead to the role that green hydrogen will play in our path to 100% clean energy by 2035. Our plans for green hydrogen include replacing the last coal-fired generating units at our Intermountain Power Project facility in Utah with green hydrogen–ready units by July 1, 2025, and also modernizing our Scattergood Generating Station Units 1 and 2 to be hydrogen-ready by the end of this decade.

Among LADWP’s long-term programs to improve Los Angeles’ water supply reliability, sustainability, and resiliency is the Operation NEXT Water Supply Program. This program aims to maximize recycled water supply from the Hyperion Water Reclamation Plant for reuse within Los Angeles to help recharge the groundwater basins and potentially incorporate directly into our treated drinking water system. Assistant Director of Water Resources Delon Kwan offered a glimpse into the program’s goals, budget, required infrastructure, and timeline.

The LA100 study showed that our customers have an important role to play in our reaching 100% carbon-free energy, explained David Jacot, director of Efficiency Solutions, in his discussion of customer programs and incentives planning. Energy efficiency, greater electrification, and customer demand flexibility are all factors that will contribute to our ability to reach our carbon-free goals in the most cost-effective way possible. To help our customers achieve those factors, LADWP offers a full slate of programs and incentives and, in 2023, will also be launching the Commercial Product Marketplace and the Building Electrification Measures program.

Lisa Yin, director of Rates and Financial Planning, concluded the webinar with a rate setting update. She explained that it is time for a rate review to catch up with inflation, to ensure essential work continues to be funded, and to lay the groundwork for major initiatives, such as Operation NEXT and LA100. There are some rate review options on the table, including the possibility of a shorter-term rate action of one year followed by a longer-term rate review of four years, and next steps for LADWP are to finalize the rate action options.

As 2022 draws to a close and we look ahead to 2023, our Key Account customers remain our valued partners and trusted stakeholders as we work to meet our sustainability goals. Throughout all the transitions that lie ahead, our dedicated Key Account advisors remain committed to delivering you the assistance and support you need to navigate these changes.