In the midst of California’s budget crisis, the mayor of LA has unveiled a plan to drop all coal-fired generation by 2020. The ambitious plan includes a boost in new renewable capacity to 40% of the city’s power mix, with the remainder sourced from natural gas, nuclear and existing large hydroelectric.
There are no coal-fired power plants in California, but LA maintains contracts with interstate coal-fired generators. One of the major contracts ends in 2019, however, the other major coal-fired contract runs until 2026, presenting a potential legal battle. Read more on Reuters.
The State currently cannot pay its bills, it is facing a US$26.3 billion deficit, and it has issued IOUs for the first time in decades (mostly to residents in lieu of a tax return). The Mayor of LA said that rates would rise to meet the higher cost of renewable generation over coal, and that some of the cost would be recovered through an expected 10% improvement in energy efficiency. LA is currently on track to get 20% of its power from renewables by 2010.
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