Feb. 19, 2004

Electric power generated by geothermal wells

Q: Press reports indicate that the Laboratory would be a willing buyer of electric power generated by geothermal wells in the nearby Valles Caldera National Preserve giving a boost to claims of economic viability of that resource. Does the Laboratory have an official position on the purchase of future geothermal power from the preserve? If so, can you explain the rationale? If not, should the press reports be corrected or clarified?

A: I am not aware of an official Laboratory position on the purchase of future geothermal power from the VCNP, at least not from us at Utilities and Infrastructure (FWO-UI). What we do have is a Department of Energy/National Nuclear Security Administration requirement based on an Executive Order to procure a percentage, 3 percent by 2005 ramping up to 7.5 percent by 2010, of our total power requirements from renewable energy sources such as solar, wind or geothermal. Hydroelectric is not considered renewable. Furthermore, the DOE/Albuquerque office, through the Los Alamos Power Pool, not the Laboratory, has the responsibility and charter to enter into any contracts for additional power. The Laboratory's main responsibility in this arrangement is to develop accurate and timely forecasts for electrical usage so that the LA Pool and DOE/Albuquerque can go into the market and procure the additional resources to meet these needs.

DOE is presently meeting with various wing generating sources and negotiating with Western Power Administration to broker the Laboratory's renewable requirements along with Kirtland Air Force base, including Sandia and some other New Mexico air bases in eastern New Mexico in order to satisfy the Executive Order. What we have said is that if there is any geothermal power generated in the Valles Caldera area that is price competitive with the LA Pool's other resources, and the Lab needs this additional power based on our forecasts, we would be willing to take it provided the Pool was not able to meet our needs. In other words, we have not committed to any additional power from geothermal without DOE/AL or the LA Power Pool's concurrence.

--David A. Padilla, FWO-UI