DWP Ratepayers, Streetlights, and the Lack of Transparency

LA WATCHDOG - At its September 22 meeting, the politically appointed Board of Water and Power Commissioners approved a five-year, $330 million contract for the installation of 22,000 solar powered streetlights over the next five years at a cost of $330 million, preceded by a pilot project for 6,000 streetlights at a cost of $80-90 million.

This approval, however, was not accompanied by any discussion or analysis of the project. Even the Ratepayer Advocate was not provided any information about the economics of this project, including a cost/benefit analysis and its impact on Ratepayers.

Of course, there is very little, if any, benefit to the Ratepayers since streetlights are the responsibility of the Bureau of Street Lighting.  Nevertheless, Allan Marks, the President of the Board, added his two cents saying that this program would result in energy conservation and savings, but no specifics.  There were no questions or comments from the other stone-faced commissioners during the four minutes of airtime involving this program.

It is no coincidence that this raid on Ratepayers’ wallets followed the rejection by 80% of the voters of the effort by City Hall to increase the annual Street Lighting Assessment to $125 million, almost triple the current assessment of $45 million.  There is little doubt that this raid was approved by Mayor Bass and her budget gurus, despite concerns by some DWP employees who questioned the economics of the contract with Willdan Group, the contractor, its relationship with certain DWP managers, as well as DWP’s operational and financial relationship with the Bureau of Street Lighting.   

In addition to this program, the City and the Bureau of Street Lighting owe DWP over $90 million in past due payables and there is no plan to address the timely repayment of this obligation. If this were any other customer of the Department, the lights would be turned off.  Other City departments also owe DWP another $30-40 million.

So where is the transparency?  What are the economics of the project? What are the benefits, if any, to the Ratepayers? Is there any plan to repay the Department?  Why is the funding of the Bureau of Street Lighting the responsibility of the Ratepayers?  

Mayor Bass, Ratepayers need and deserve answers.  We are not the City’s piggy bank.

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Speaking of the nonpayment of bills, the Neighborhood Council DWP Advocacy Committee has asked the Department for information about the money owed by over 400,000 ratepayers who have failed to pay their utility bills in a timely fashion. Radio silence.

(Jack Humphreville writes the LA Watchdog column for CityWatch, where he covers city finances, utilities, and accountability at City Hall. He is President of the DWP Advocacy Committee, serves as the Budget and DWP representative for the Greater Wilshire Neighborhood Council, and is a longtime Neighborhood Council Budget Advocate. With a sharp focus on fiscal responsibility and transparency, Jack brings an informed and independent voice to Los Angeles civic affairs. He can be reached at [email protected].)