KICKING THE COAL HABIT

Los Angeles will end use of coal-fired power
Bernie Woodall (w/Marguerita Choy), July 2, 2009 (Reuters)

"Los Angeles will eliminate the use of electricity made from coal by 2020, replacing it with power from cleaner renewable energy sources, Mayor Antonio Villaraigosa said.

"Consumers of the Los Angeles Department of Water and Power, the largest city-owned utility in the United States with 1.45 million electricity customers, will see higher power bills in the fight against climate change, he added in his inaugural speech for his second four-year term as mayor…"

A prominent investment banker seems to think coal has some problems. (click to enlarge)

"California does not have any coal-fired power plants, a leading contributor to greenhouse gas pollution, but the LADWP now gets 40 percent of its electricity from coal plants outside the state…Coal and natural gas-fired power now account for 76 percent of the electricity delivered by the LADWP. By 2020, the LADWP expects to cut its carbon emissions by up to 60 percent from 1990 levels, according to the mayor's office.

"Villaraigosa said the LADWP will meet its goal of getting 20 percent of its power from renewables by 2010…The LADWP also wants to cut overall electricity use by 1 percent a year for the next 10 years…through energy efficiency…Deputy Mayor David Freeman said the LADWP will continue to use power from the coal-fired 2,250-megawatt Navajo Generating Station in Arizona until 2019…negotiations have not yet begun on how and when the LADWP will leave its contract as lead owner of the 1,800-megawatt coal-fired Intermountain plant in Utah…"

What is economically recoverable may not be very abundant. (click to enlarge)

"Villaraigosa and Freeman said the elimination of coal-fired power will…one day increase rates but [the LADWP 12 cents per kilowatt-hour rate] will remain competitive with the 15.5 cents per kwh of the average Southern California Edison customer…The Navajo plant can deliver power at 3 cents per kwh, and the Intermountain power is between 4 to 5 cents per kwh.

"Freeman said that coal power costs will rise as rules limiting carbon dioxide, including a cap-and-trade system, are implemented…But "costs to society" such as higher medical bills for lung-related diseases, including asthma, will drop…"