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LA WATCHDOG - Over the next decade, it is anticipated that our water and power rates will quadruple. This will create a substantial burden on all Ratepayers whether they are renters, homeowners, governmental agencies, including the Los Angeles Unified School District, and small and large businesses that employ millions of Angelenos.
In 2023, operating revenues for both the water and power systems were almost $7 billion. If rates quadruple to $28 billion, this represents a $21 billion increase, an amount that is over two and half times the City’s General Fund budget of $8 billion.
However, the Energy and Environment Committee chaired by Councilwoman Katy Yaroslavsky has the ability to lessen the impact on Ratepayers, especially on lower income Angelenos whose increased utility bills will take up an increasing share of their wallets.
On the power side, DWP has proposed a plan where our electricity would be derived from 100% Renewable resources. But the Ratepayer Advocate has indicated the sustained escalation of rates and bills is “not reasonable” because the incremental cost of eliminating the last 10-20% of fossil fuels is around $1,200 a ton. This compares to the current market of around $50 for a ton of greenhouse gas.
An alternative is to lower the goal to 80% or 90%, saving Ratepayers billions and resulting in “only” a doubling of rates, but still result in the elimination of significant levels of greenhouse gas.
On the water side, the Department is considering spending $20-25 billion on Pure Water Los Angeles, a facility that will convert 250 million gallons a day of wastewater into 200,000 acre feet a year of potable water. This represents about 40% of the City’s needs.
The cost of this $20 billion project is $5,000 for each of the four million Angelenos. On the other hand, if this project is done in conjunction with the Metropolitan Water District, the cost for each of the 20 million residents in MWD’s territory is $1,000, a substantial savings for Angelenos. These substantial savings more than offset the lesser control over the water produced by Pure Water Los Angeles.
These two alternatives will not be well received by the politically active environmental community who have no respect for our wallets. But these alternatives deserve open, transparent, and independent hearings on the impact of LA 100 Renewables and Pure Water Los Angeles on our wallets.
(Jack Humphreville writes LA Watchdog for CityWatch. He is the President of the DWP Advocacy Committee, the Budget and DWP representative for the Greater Wilshire Neighborhood Council, and a Neighborhood Council Budget Advocate. He can be reached at: [email protected].)
