Glendale plans to renegotiate battery contract with Los Angeles to save millions

A significant opportunity for Glendale's energy future emerged during the Special City Council meeting on December 10, 2024, as officials discussed plans to renegotiate a contract with Los Angeles for energy balancing. The proposal centers around a 75-megawatt battery system that could potentially save the city between $5 million to $7 million annually.

City staff highlighted that the battery would allow Glendale to balance its energy load more effectively, maintaining a zero transfer between Glendale and Los Angeles. This strategic move aims to enhance energy efficiency and financial sustainability for the city.

Questions arose regarding the battery's charging and discharging capabilities. Officials explained that while the battery can charge quickly up to 80%, the final 20% takes longer to preserve its integrity. Regular operations would typically see the battery utilized between 10% and 80% capacity, optimizing its lifespan and performance.

While the potential savings from renegotiating with Los Angeles are promising, city officials clarified that these savings are not factored into the current budget. As a result, they confirmed that next year's rate increase for residents remains unchanged due to existing financial obligations tied to bond agreements. However, they indicated that future negotiations could influence rates in subsequent years, particularly for the next Cost of Service Adjustment (COSA) planned for around 2027.

This discussion marks a pivotal moment for Glendale as it seeks to leverage renewable energy solutions while managing costs effectively for its residents. The city is poised to explore these opportunities further, with the battery system expected to come online by 2026.