New LA DWP chief says rate increases 'harsh truth' for cleaner energy

The newly appointed interim manager of the Los Angeles Department of Water and Power on Wednesday promised to cut costs at the agency before raising rates for electricity and water - but he said rate increases are coming.

David Freeman formally withdrew a proposal for a rate increase at a LA City Council meeting.

Here's an excerpt of an interview David Freeman did with KPCC's Frank Stoltze.

David Freeman: "The mayor's directed me to take a fresh look at their budget and review all the rate increases that they're asking for and make sure we can't get by with just a little bit less. And there is a harsh truth that when you're going from dirty coal to solar and wind and thus, it costs a bit more but let’s make sure it’s just a bit more and not too much more."

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Los Angeles has a goal of making renewable energy 20 percent of the DWP portfolio by
2010, and 40 percent by 2020.

Frank Stoltze: "Any obvious places to cut (costs at the DWP) at this point?"

Freeman: "Yeah, you're going to see a list of projects that we're going to kill because they cost too much. The mayor and I'll be releasing that in the next couple of weeks."

Freeman was less forthcoming when it came to his comments about DWP management before a meeting of the Central City Association.

Stoltze: “You mentioned in your presentation that management's going to 'shape up.' What did you mean by that?”

Freeman: “We're going to try to do better is what it means.”

Stoltze: “That seems fairly general. Do you think they haven’t quite met up to standards in the past.”

Freeman: “I'm not here to curse the past. I'm here to light up the future."

Meantime, Los Angeles City Councilwoman Jan Perry has asked the DWP to account for the revenue from previous water rate hikes. She noted the utility's payroll has been rising steadily for years,
and questioned where that money was coming from.

The City Council voted unanimously to return a proposal to increase rates to the DWP and
to direct Freeman to report back to the Energy and the Environment Committee in 30 days.

KPCC Wire Services contributed to this story.