No oomph in DWP
green power, critics say
Mar 27, 2006 - Daily News, Los Angeles
Author(s): Dan Laidman
Mar. 27--As the new leadership of the Department of Water and Power
makes clean energy a top priority, one of the utility's earliest and
most prominent green-power programs is languishing in limbo.
Participation in the DWP's Green Power Program, in which customers
voluntarily pay extra to fund environmentally sound energy, plummeted
for the third consecutive year in 2005, records show.
Participants totaled 24,320, down from a peak of 31,543 in 2002.
Revenue from the program, meanwhile, sank to $1.8 million from a peak of
$2.8 million.
Some environmentalists say the declining Green Power Program
symbolizes a lack of commitment to move toward clean energy.
"They don't let the people do their part, and the department's not
doing its part," said John White, executive director of the Center for
Energy Efficiency and Renewable Technologies. "Nothing is happening."
Tensions surrounding the clean-power efforts boiled over last week
when DWP commissioners lashed out at department managers for moving too
slowly toward renewable energy.
While Commission President Mary Nichols joined her colleagues in
expressing frustration, she said in an interview that, although reaching
clean-energy goals will take time, the crucial first steps are being
taken.
"There are a lot of things to work on, and going to our customers and
asking them to voluntarily participate in helping to move that process
forward faster than we could otherwise is certainly an appropriate thing
to do," she said.
"But we want to make sure, for us to ask people to voluntarily pay
extra, that they're getting something for their money. And until we know
what the basic minimum is going to be and how we're going to get there,
we don't want to unfairly penalize our customers who want to do the
right thing."
The DWP launched its program in 1999 with the goal of raising money
to buy renewable energy and build clean generating units while also
raising public awareness of the slogan "Green power for a green L.A."
The program is open to both residential and commercial customers, and
the extra charges are based on electricity usage. Typical residential
costs range from $3 to $6 per month.
The program was touted in a multimillion dollar marketing campaign
that became embroiled in the "pay-to-play" scandal that dogged the
administration of former Mayor James Hahn.
Related public-relations contracts were terminated in 2004 after
critical audits by Controller Laura Chick and investigations into
overbilling and other alleged wrongdoing.
The Green Power Program did not bounce back from the woes, but rather
kept a low profile in 2005, officials said.
"We've gone to very cost-effective means trying to shift away from
some of the previous ways the program was promoted," said Gary Gero, the
DWP's director of energy efficiency and renewable solutions.
The main venue for advertising is now an insert included in the bill
of each of the DWP's approximately 1.9 million residential customers,
Gero said. Utility representatives also talk to ratepayers and
distribute material at community events, he said.
The frugality is partly in response to the past scandal, but also
reflects a wider uncertainty at the utility.
"Unfortunately, it's been a little bit of waiting for the larger
picture of the (renewable energy portfolio) to come into focus while we
let the Green Power Program move along behind that," Gero said.
Renewable power sources now make up about 5 percent of the DWP's
portfolio. While state officials have called for utilities to have 20
percent of their power renewable by 2017, Mayor Antonio Villaraigosa's
new DWP commissioners have set a more ambitious goal of 20 percent by
2010.
The board has been pushing department managers to develop geothermal,
solar, wind and hydroelectric projects, as well as to convert waste to
energy.
The commissioners expressed dismay last week when they got the
impression that DWP managers failed to show any sense of urgency in a
quarterly update on green-power progress. Among other things, the
managers said a significant wind-power project would be delayed an
additional year because they lost out in stiff competition to secure the
turbines quickly from a vendor.
Speaking to utility managers, Commissioner Nick Patsaouras called the
lack of progress "a total disappointment." Colleague David Nahai said it
is unclear how the DWP will reach a goal of 20 percent by 2010.
DWP General Manager Ron Deaton said building the transmission
infrastructure is difficult and time-consuming.
"I do not believe there is a utility in this state working harder,
investing more money and more effort, trying to get the transmission
lines to the areas where there is green power," he told the commission.
White, from the Center for Energy Efficiency and Renewable
Technologies, joined city officials last November for the public
introduction of a $300 million geothermal energy proposal involving both
new power sources and transmission lines.
Now, though, White said he fears that project could become "just
another boondoggle" if the lines end up carrying power from dirty
sources like coal.
"They're going through the motions, but they're not getting it done,"
he said about the Green Power Program.
The program was an early effort to get started on adding renewables,
White noted. He said he thought it was overpublicized but important.
"The fact there was a number of citizens ready to participate tells
you there is a hunger in the city for people wanting to do their part,"
he said.
Councilwoman Jan Perry, who chairs the Energy and Environment
Committee, said that she is loathe to criticize the program's pace
because renewables are a new and complex field, but would like to see
more urgency.
Perry said she will introduce new incentives to complement the Green
Power Program, including tax credits for businesses that invest in green
products.
"To do a reassessment of what's working and what may not be working
may not be a bad thing," she said. "It's a good thing because it gives
us an opportunity to really assess the marketplace and the need and
where the gaps are."
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