LADWP Board Approves Balanced 2005-06 Budget; Calls for Increased Energy Efficiency, Environmental Programs
LOS ANGELES, Jun 21, 2005 -- BUSINESS WIRE
The Los Angeles Department of Water and Power (LADWP) Board of Water and Power Commissioners approved a balanced, $3.1 billion budget today for fiscal year 2005-06 that demonstrates the LADWP's commitment to programs that foster clean air and renewable energy.
Under the direction of General Manager Ronald F. Deaton, the budget broadly supports environmental measures designed to promote energy efficiency, renewable power, and other projects aimed at fostering clean air and other environmental benefits.
"I am very pleased that we are able to support and expand programs that benefit both the environment and the communities we serve," Deaton said. "We are increasing our investment in energy efficiency programs, including Trees for a Green L.A. and Cool Schools, both of which are geared toward planting more trees in Los Angeles to save energy, improve air quality, and beautify neighborhoods all at the same time," Deaton said.
The budget earmarks $27 million for energy efficiency programs and $16 million for continued funding of LADWP's solar photovoltaic incentive program in 2005-06. Currently, the Department is studying a variety of energy efficiency programs to determine how best to allocate the funds.
Accompanying the budget are five-year financial plans for the power and water systems that indicate projected costs and revenue requirements through fiscal year 2009-10. For the water system, the budget includes a proposed revenue increase of 3.8% in January 2006, and subsequently 3.8%, 3.9%, 3.2%, and 3.2% for fiscal years 2006-07 through 2009-10. On the power side, no rate increases are anticipated for the next three fiscal years. In 2008-09 and 2009-10, the Department projects increases of approximately 1.5% annually to meet financial objectives of the power system.
Deaton emphasized that the budget is a financial planning document, and as such, does not authorize rate increases. LADWP will develop and submit to the Board a proposed water rate increase that would be subject to an independent third-party review. Additionally, the proposed rate action would be subject to public hearings that include a 90-day review by neighborhood councils. It would then require approvals by the Board of Water and Power Commissioners and the City Council.
"We have been working hard this year to make sure neighborhood councils had opportunities to review and comment on the draft budget," Deaton said. Neighborhood councils had been notified in advance about Board reviews of the budget on May 23, June 7, and today's hearing. Additionally LADWP conducted two budget workshops over the past six months to ensure the councils were aware of the proposed budget and financial plans.
The proposed water system revenue increases are largely driven by state and federal mandates to meet increasingly stringent water quality regulations. These mandates require extensive capital projects involving the city's water reservoirs, major trunklines, and other infrastructure. Furthermore, significant capital expenses also are required to complete mandated environmental mitigation projects in the Owens Valley.
Deaton said the 2005-06 budget demonstrate LADWP's commitment to control costs and keep water and power rates competitive. "We are achieving these goals, and at the same time, doing much more to satisfy water quality regulations, environmental commitments, and upgrade infrastructure to ensure continued reliability of water and power for the city of Los Angeles," he said.
The Los Angeles Department of Water and Power serves more than 3.8 million people in Los Angeles and was established more than 100 years ago to provide water and electric needs to the city's businesses and residents. For more information, visit www.ladwp.com .
SOURCE: Los Angeles Department of Water and Power
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