Pasadena Water and Power Seeks Approval for 20-Year, $500 Million Solar Energy Contract

Pasadena Water and Power is seeking authorization from the City Council to enter into a 20-year power sales contract with Southern California Public Power Authority for solar photovoltaic and battery energy storage.

The proposed contract, which will be discussed during the Pasadena City Council’s Municipal Services Committee meeting on Tuesday, Feb. 13, would cost an amount not-to-exceed $512.05 million, a PWP memo showed.

The recommendation is part of PWP’s efforts to transition towards sustainable energy sources and meet ambitious decarbonization goals. The proposed contract aims to source renewable energy from the Bonanza Solar project, operated by Bonanza Solar, LLC, located in Clark County, Nevada.

If approved, the contract will cover the daily delivery of a maximum of 105 megawatts of solar photovoltaic energy and up to four hours of dispatchable battery energy storage, not exceeding 55 megawatts, during a 20-year term starting Dec. 31, 2027. The Bonanza Project is expected to contribute significantly to Pasadena’s electricity needs, enhance electric reliability, and reduce greenhouse gas emissions and air pollutants.

The decision to pursue this contract aligns with Pasadena’s resolution to source 100% of its electricity from carbon-free sources by the end of 2030, surpassing state-mandated targets. PWP has consistently exceeded state compliance targets and focuses on resources that support affordability while meeting Pasadena’s unique energy needs.

The Bonanza Project represents a strategic investment for PWP amidst California’s competitive energy resource market. With the termination of the Intermountain Power Project (IPP) coal contract in 2027, the Bonanza Project’s timing is opportune. It will partially offset the loss of capacity from the IPP exit and contribute to the state’s renewable energy goals.

Through the IPP, PWP sources electricity from a coal-fired plant in Delta, Utah, which also supplies power to Anaheim, Burbank, Glendale, Los Angeles, and Riverside. The IPP terminates in June 2027.

PWP said the Bonanza Project emerges as a cost-effective solution that balances electric reliability, environmental stewardship, and affordability. The proposed contract underscores PWP’s commitment to sustainable energy practices and its dedication to meeting the needs of its community while ensuring a cleaner, greener future for Pasadena.

Residents are encouraged to listen to the discussion on Tuesday to stay informed about developments in the city’s efforts towards securing Pasadena’s energy future through renewable resources.

The meeting begins at 4 p.m.