Jan 23 - McClatchy-Tribune Regional News - Rick Orlov Daily News, Los Angeles

Despite questions over its $100 million price tag, the Los Angeles City Council on Tuesday refused to delay a program that would pay property owners for generating solar energy.

The 100 megawatt feed-in tariff program, which will pay property owners 17 cents for every kilowatt hour of energy produced, was allowed to go ahead without further study even with a critical report from the city's ratepayer advocate, who questioned the amount the city will pay for the energy produced.

Ratepayer advocate Fred Pickel said most utilities are paying less than 11 cents per KWH for solar power, and the Department of Water and Power was using a formula violating the concept of avoided costs used by most utilities.

"Every time we get away from that, we get into trouble," Pickel said in his report to officials.

During a council hearing on Tuesday, Pickel said he had been given only one day to review the program and its costs and he believes more time is needed to fully assess the program.

However, DWP officials and others supporting the program said it was time for Los Angeles to move into the forefront of solar energy with the proposed program, which would be the largest in the nation.

"Someone is going to be the leader when it comes to solar and it should be Los Angeles," said Councilman Paul Krekorian.

However, Councilwoman Jan Perry asked that more time be given to Pickel and that more information be provided to the DWP

customers.

Perry, a candidate for mayor and a supporter of the program, said she did not want to see the program rushed through.

"I like to believe that as a city we can address the questions that are out there so people can understand the program," Perry said. "If you believe this is a good program and important, we should be willing to take a look at it and educate the public why it is a good thing for the city."

Councilman Richard Alarcon said the city has been discussing the proposal for years and it was time to move ahead on it.

"I raised questions about the rate being contemplated and that was when it was at 30 cents (per KWH)," Alarcon said. "I think they have done a good job in coming down with the cost.

"I think a bigger issue we should face is the $250 million we transfer from the DWP every year to balance our budget. That's a lot more than we are talking about for this program. We might have to pay a little more at the start to get the program going, but it will come down in future years."

State law requires the DWP to generate more power from renewable sources and Mayor Antonio Villaraigosa also has set a goal of having 30 percent of the DWP power come from renewable sources by 2020.

DWP officials argue the higher rates are needed to encourage homeowners to participate in the program.

The city proposal will seek to have 20 of the 100 megawatts generated every six months come from renewables over the next four years.

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