City Council Wants More Control Over LADWP; Former LADWP President Sues Utility
Nearly facing bankruptcy over an expected-but-now-withheld payment of $73.5 million dollars, the L.A. City Council today introduced measures that could end up giving them more power over the department. Currently, the General Manager and Board of Commissioners are tapped by the Mayor.
Last week, an LA Times editorial explained why this isn't the best organizational structure: "Because the commissioners and the general manager are equally answerable to the mayor, it's unreasonable to expect the board to object to an initiative that comes from the department or directly from the mayor's office."
The $73.5 million power revenue transfer became the quid-pro-quo item in Mayor Antonio Villaraigosa's carbon surcharge plan, which sought to up L.A.'s renewable energy portfolio to 20% in addition to balancing the utility's financial needs. The Board of Water and Power Commissioners said if the surcharge wasn't approved by the Council, they would withhold $73.5 million of the annual $220 million transfer--already included in the city's budget--to the city's general fund, which pays for basic services like police and streets. On Monday, the utility said it would not transfer the money, meaning the city would be out of money by May 5th.