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Statement by LADWP Chief Financial Officer Philip Leiber on Power System Revenue Shortfall

Statement by LADWP Chief Financial Officer Philip Leiber on Power System Revenue Shortfall
“The revenue shortfall currently being experienced is a temporary delay in recovery of revenue associated with delays in billing and collections, and our decision to stop customer disconnections for non-payment.

While power system collections are currently $200 million below the anticipated level, LADWP’s power system operating expenses are currently $45 million under budget and capital spending is $322 million below budget. LADWP also has cash reserves more than sufficient to absorb the variances thus far.

We expect to recover this money over time as we continue to work with our customers through the transition to our new billing system and the impact to LADWP’s financial condition is manageable.”

– Philip Leiber, Chief Financial Officer