May 27, 2008
RELIABILITY AND ENVIRONMENTAL STEWARDSHIP
LOS ANGELES – The Los Angeles Department of Water and Power (LADWP) Board of Commissioners has begun an intensive month-long review of a proposed 2008-09 budget that calls for significant investments in water conservation and recycling, energy efficiency, renewable energy projects, and power system reliability.LADWP CEO & General Manager David Nahai, who presented the proposed budget to the Board on May 20, said, “This is a fiscally responsible, prudent budget that will push LADWP to the forefront of environmental leadership while ensuring we continue delivering reliable and low-cost water and energy to the residents and businesses of Los Angeles.”
The proposed budget reflects the Department’s key priorities, such as securing a reliable water supply through conservation and recycling, increasing renewable energy and energy efficiency, improving power system reliability, enhancing environmental stewardship, ensuring workforce continuity, and exercising fiscal responsibility.
Altogether, the $4.7 billion budget includes $3.6 billion for the power system and $1.1 billion for water system. As part of the budget process, the Board will conduct public workshops beginning this week (listed below) to review the details of the individual budgets for water, power, and “joint” or shared services.
“The Board is committed to facilitating an open and transparent budget process, allowing ample opportunities for the public to review and comment on the proposals,” Board President Nick Patsaouras said. He added that the proposed budget carries out Mayor Antonio Villaraigosa’s vision of “a green City, reliable power and water supplies, creating green jobs, and at the same time, being fiscally responsible and using the ratepayers’ money prudently.”
The budget follows the release of the Mayor’s and LADWP’s long-term vision for “Securing L.A.’s Water Supply,” a far-reaching water supply action plan that calls for meeting new demand strictly through water conservation and recycling, and enhancing local groundwater, rather than tapping new resources. Much of the funding will support a new focus on curbing outdoor water use. For instance, LADWP plans to provide free smart sprinklers to residential customers, beginning with 2,500 in 2008-09 and increasing to 5,000 each year on a sustained basis.
The proposed budget also increases funding to expand the city’s purple pipe network, which provides recycled water for irrigation and industrial uses.
“The city continues to face challenges to our water supply. These investments will help us live within our water means by developing more locally sustainable water resources,” said Jim McDaniel, chief operating officer for the water system.
On the power side, the proposed budget pushes LADWP closer to its goal of providing 20 percent of customers’ power from renewable resources by 2010 and 35 percent by 2020, as well as comprehensive upgrades to aging electrical infrastructure over the next five years.
It also boosts funding for energy efficiency programs from an estimated $31 million this year to $77 million in 2008-09–an increase of nearly 60 percent–to implement energy saving programs such as the distribution of compact fluorescent lights (CFLs), the low-income refrigerator exchange program, and other initiatives.
Throughout the budget review process, budget documents will be posted for public access on the LADWP website at http://www.ladwp.com/.
Budget Presentations:
Overall Fiscal Year 2008-09 Budget Power System
Proposed Power System Fiscal Year 2008-09 Budget
Following is a list of scheduled budget workshops conducted by the Board of Commissioners and open to the public to attend. All workshops will take place at the LADWP John Ferraro Building, 111 N. Hope St. in downtown Los Angeles.
Workshop Schedule:
- Wednesday, May 28: Power budget presentation
- Friday, May 30: Joint (shared services) presentation
- Monday, June 2: Water budget presentation
- Tuesday, June 17: Board decision on budget at regular meeting
The Los Angeles Department of Water and Power, the nation’s largest municipal utility, provides reliable, low-cost water and power services to Los Angeles residents and businesses in an environmentally responsible manner. LADWP services about 1.4 million electric customers and 680,000 water customers in Los Angeles.
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