Overview of the 2019 Report by the Statewide

Overview of the 2019 Report by the Statewide Advisory Committee on Cooling Water Intake Structures Presented by: Lana Wong Senior Analyst California Energy Commission May 23, 2019 1

Highlights of SACCWIS Report • No recommendations for changes to compliance schedule • Potential need for a future compliance date schedule change 2

Status of Once-Through Cooling Plants • California’s OTC plants – Net Qualifying Capacity: 20, 582 MW • OTC compliance to date – 27 units at 14* plants: 10, 409 MW • OTC compliance by 2020 – 16 units at 5 plants: 6, 318 MW • OTC compliance by** 2029 – 8 units at 4 plants: 3, 855 MW *Not all units have complied at 4 of the 14 plants **Some units will retire at an earlier date in 2024/2025. All plants will fully comply in 2029 3

Locations of OTC Plants 4

OTC Compliance Achieved Net Qualifying Capacity (NQC, Facility & Units in MW) Humboldt Bay 1, 2 135 South Bay 296 Potrero 3 206 Huntington Beach 3, 4 452 Contra Costa 6, 7 674 El Segundo 3 335 Haynes 5, 6 535 San Onofre 2, 3 2, 246 Morro Bay 3, 4 650 El Segundo 4 335 Scattergood 3 497 Pittsburg 1, 159 Moss Landing 6, 7 1, 509 Encina 1 106 Mandalay 1, 2 430 Encina 2, 3, 4, 5 844 Compliance Date Dec. 31, 2010 Dec. 31, 2011 Oct. 1, 2011 Dec. 31, 2020 Dec. 31, 2017 Dec. 31, 2015 Dec. 31, 2013 Dec. 31, 2022 Dec. 31, 2015 Dec. 31, 2017 Dec. 31, 2020 Dec. 31, 2018 Retirement Date Retired Sept. 30, 2010 Retired Dec. 31, 2010 Retired Feb. 28, 2011 Retired Nov. 1, 2012 Retired April 30, 2013 Retired July 27, 2013 Retired June 13, 2013 Retired June 7, 2013 Retired Feb. 5, 2014 Retired Dec. 31, 2015 Operations ceased Dec. 31, 2016 Retired Jan. 1, 2017 Retired March 1, 2017 Retired Feb. 6, 2018 Retired Dec. 11, 2018 5

OTC Remaining Compliance Facility & Units Alamitos 1, 2, 6 NQC(MW) Compliance Date Owner-Proposed Compliance Method 848 Dec. 31, 2020 Plans to retire on Dec. 31, 2019 to allow Alamitos be repowered Alamitos 3, 4, 5 1, 163 Diablo Canyon 1, 2 2240 Dec. 31, 2024 Harbor 5 229 Dec. 31, 2029 Plans to retire units Plans to retire unit 1 on Nov. 2, 2024 and unit 2 on Aug. 26, 2025 Plans to repower on Dec. 31, 2029 Haynes 1, 2 444 Dec. 31, 2029 Plans to repower on Dec. 31, 2025 Haynes 8 575 Dec. 31, 2029 Plans to repower on Dec. 31, 2028 Huntington Beach 1 215 Dec. 31, 2020 Plans to retire on Dec. 31, 2019 Huntington Beach 2 215 Dec. 31, 2020 Moss Landing 1, 2 1, 020 Dec. 31, 2020 Plans to retire unit Track 2 – Reduce impingement and entrainment Ormond Beach 1, 2 1, 516 Dec. 31, 2020 Redondo Beach 7 493 Dec. 31, 2020 Redondo Beach 5, 6, 8 848 Dec. 31, 2020 Scattergood 1, 2 367 Dec. 31, 2024 Plans to retire units Plans to retire on Oct. 1, 2019 to allow Huntington Beach repower Plans to retire units Plans to repower by Dec. 31, 2024 6

OTC Fleet Water Use 18000 Design Flow Rates -- State Water Board Compliance Schedule Fleet Water Use (MGD) 16000 14000 Design Flow Rates -- Due to Early Retirements 12000 10000 Actual Flow Data from EPA SONGS outage and retirement 8000 6000 4000 2000 30 20 >= 20 29 20 28 20 27 20 26 20 25 20 24 20 23 20 22 20 21 20 20 20 19 20 18 20 17 20 16 20 15 20 14 20 13 20 12 20 11 20 10 0 Source: Figure 1, pg. 8, 2019 SACCWIS Report 7

Resources to Replace OTC Planned resources to replace SONGS and implement OTC: • Preferred resources – – Energy efficiency Demand response negligible Distributed generation Energy storage • Transmission solutions – Reactive support (e. g. , synchronous generators) – Transmission lines and grid upgrades • Conventional generation 8

Alamitos (2020) • Six units with a total capacity of approximately 2, 000 MW and an OTC compliance date of December 31, 2020 • November 2014 AES awarded 640 MW Power Purchase Agreement with SCE – Units 1, 2, and 6 are expected to be retired early on December 31, 2019 – Units 3, 4, and 5 are expected to retire by December 31, 2020 compliance date • April 12, 2017 AFC was approved by the CEC • Construction is underway and on track to be online April 2020. • SACCWIS does not recommend a change in compliance dates at this time, but the CAISO will evaluate need for potential OTC compliance date extension due to delay of the Mesa Loop-In Project 9

Huntington Beach (2020) • Units 3 and 4 – Retired October 31, 2012 and converted to synchronous condensers to provide voltage support in 2013 – Both synchronous condensers shut down and retired on December 31, 2017 • Units 1 and 2 – Capacity of 226 MW each with an OTC Policy compliance date of December 31, 2020. – Resource Adequacy (RA) contract has been executed that would extend the operation of Huntington Beach units 1 and 2 through December 31, 2019 and December 31, 2020 respectively – Will be shut down and permanently retired at those contract end dates • • Repowering project - Awarded a PPA for 644 MW capacity with a planned initial delivery date of May 1, 2020 Petition to Amend (PTA) was approved by the CEC on April 12, 2017. Construction is underway and on track to be online April 2020 SACCWIS does not recommend a change in compliance date at this time 10

Redondo Beach (2020) • Consists of four units; total capacity is approximately 1, 300 MW • Proposed repowering project is a natural-gas fired, combinedcycle, air-cooled electrical generating facility with net generating capacity of 496 MW • AFC suspended November 2015 – AES has sold two parcels of the Redondo Beach site – If expected sale of remaining property closes in 2019, AES will terminate AFC • Unit 7 scheduled to shut down Sept. 30, 2019 in advance of the OTC compliance date to accommodate emission offsets for new Huntington Beach combined-cycle gas turbine (CCGT) • Units 5, 6, and 8 are scheduled to shutdown December 31, 2020, on the OTC Policy compliance date. • SACCWIS does not recommend a change in compliance date 11

Stanton Energy Reliability Center • Two natural gas-fired, simple-cycle combustion turbines (98 MW) – Clutch to provide operational flexibility as a synchronous condenser – Integrated 10 -megawatt (MW) GE Battery Energy Storage System • Located in Stanton, California • Awarded 98 MW Power Purchase Agreement with SCE • Nov. 7, 2018 AFC was approved by the CEC • Construction is underway 12

Mesa Loop-In Project • Expected to be in service 2022 (formerly 2021) • May require an OTC extension for Alamitos or Redondo Beach • CAISO special study report expected in June 2019 • SACCWIS will reconvene if needed 13

Conclusions • No recommendations for changes to compliance dates at this time • CAISO, CEC, and CPUC will continue to monitor to ensure reliability • SACCWIS may request compliance dates modifications 14