Live-Blogging the Energy and Environment Committee Meeting

The following is a round-by-round account of a Saturday morning meeting held to discuss the future of water and power issues in Los Angeles.

9:15 a.m. Hello and good morning from City Hall. The Energy and Environment Committee is holding a historic joint meeting with the Board of Water and Power Commissioners. The main event is a presentation from Ron Nichols, head of the LADWP and brass-tax general manager who's won plaudits from council members for his serious approach to reforming his department.

A resident chimes in. / CD2

A nearly packed house arrived early for this meeting, which begins with Nichols' status update of the department, via a 51-page full color handout allowing those in attendance to follow along. It's a nifty set of updates that we'll get online as soon as it's available. What's important about this handout - and the fact that this hearing is even being held - is that it allows residents (and you) to learn important details about a department that had, in the recent past, been accused of operating under a shroud of secrecy that inhibited consumer and council confidence.

Let's pick up the action as Nichols describes the fiscal challenges of the LADWP.

9:24 Nichols is talking about the department's "basic business needs," including what budget costs the DWP has incurred and what they need to do to keep the utility running. "We're being as cost effective as we can, but we can't just keep cutting programs to meet the customer's needs," Nichols said.

9:28 The proposed budget of the DWP for its power programs in 2011-12 is $737 million, its lowest since 2008-09. For water programs in 2011-12, the budget is $328 million, lower than last year. By 2014-15, the budgets for power and water will inch up to $896 million and $390 million, respectively.

9:34 Nichols, nearing the end of his presentation, talks about water and power "strategic investments," (rate increases) which he said will not be made without "intensive workshops" with residents, businesses, the board of water and power commissioners, committees, the City Council, your mom, your grandma and everyone else.

In June and July, Nichols said stakeholder workshops are set to take place, followed by City Hall meetings. In August, the LADWP board will vote on proposed rate increases; a month later, the Energy and Environment Committee and the City Council will consider them.

In October, new rates are slated to be approved and they could take effect November 1, according to the DWP timeline

9:40 Nichols has finished his presentation (again, we'll get that online as soon as we can) and he's now fielding questions from the committee chairperson, Councilwoman Jan Perry. Councilmember Paul Krekorian also sits on the committee while more info on the board of water and power commissioners is made up of these fine folks.

9:46 Perry asks for a snapshot of the DWP's "aging infrastructure." Nichols says that broken pipes and other cracks in the system have dropped. "We're going in the right direction," he said, "but we have to keep it up - and we have to keep up funding."
 
9:49 Krekorian jumps in the fray, asking about water supplies (i.e., where the DWP gets its water).

As an aside, here are some interesting facts:

Krekorian questions Nichols in LA City Hall / C

From 2006-10, the DWP received 52% of its water from the Metropolitan Water District of Southern California, 36% from the L.A. Aqueduct, 11% from local groundwater and about 1% from recycled water. From 2034-35, the DWP expects to drastically reduce its MWD supply to 24%, increase supply from the aqueduct to 33% and get 17% from recycled water and conservation measures.

9:56 Moving on to power, Krekorian asks about capital costs needed to keep power infrastructure up to date and energy efficient at the DWP. Nichols: "We're moving forward as quickly as we can, but at the end of the day we have restrictions."

10 a.m. We're at the halfway point in this hearing and the board of water and power commissioners (herein: the Board) is now questioning Nichols.

10:03 Over the next three years, Nichols said his department's budget will increase (as we mentioned before) by about $50 million per year. "Part of that," Nichols said, "is basic commitment, part of that is state law...Is that enough? No. That's why I want to get into a broad discussion on these issues."


FYI: The first "community collaboration session" will take place at 6:30 p.m. on June 15 in Van Nuys at the Marvin Braude Constituent Center. 

10:11 Board asks, what would be the cost to the DWP if the bond rating dropped? Nichols said the department has $1.2 billion in variable rate debt. "If we get below our financial matrix...the interest rate could spike to 5.5%, " which Nichols said would cost the department up to $60 million a year, "for which we get nothing... It's really important we not get there."


10:14 The Board has concluded its remarks/questions, handing time over the public, who will now get the opportunity to participate in this hearing.

First two speakers are from conservation groups asking for expanded city programs to better implement green strategies. In the queue is Jack Humphreville, a blogger and president of the DWP Advocacy Committee and the Ratepayer Advocate for the Greater Wilshire Neighborhood Council. Jack asks the council to move on the ratepayer advocate and calls on the DWP to specifically detail rate increases.

10:20 There are 60 speakers on the docket today and we have jut 40 minutes left in this chamber. Usually, public speakers have two minutes to talk about the item, but Perry has efficiently reduced that time to 30 seconds each to ensure all have a chance to speak.

10:26 Other speakers - such as Valley resident Sharon Ford - call on the DWP to move away from using coal, which the department is doing. Now, the city is powered by about 39% coal. By 2030, the DWP estimates it will no longer use coal and will increase its use of natural gas from 24% to 47%, while renewable energy will make up 33% of its energy supply. But that time line is not fast enough for some.
 

10:32 One resident, who said he's a low-income resident living  in Downtown L.A., said caring about renewable energy is not reserved for the high-class. "I'm here to tell you that the low-income among us also care about renewable energy," he said to applause.


10:43 Picture:

Public comment in LA City Hall / CD2

10:49 Other public speakers talk about water systems and the amount of imports the DWP receives from MWD. As was mentioned at 9:49, supply from the water district will drop by more than half in the next 20 years while local supplies will inch up. Most MWD-supplied water Los Angeles receives comes from the Colorado River, which snakes through the Rockies, parts of Arizona before it meanders into California - hence the desire for more local, dependable supplies.

10:56 Marcy Winograd, who recently opposed Janice Hahn, et al. for a Congressional seat, is here. Winograd is also a teacher in the city of L.A. (she lives in Santa Monica) and joined many today who urged the city to get off coal by 2020. "It's a matter of political will," she said, proposing that the City Council hold a meeting to detail how L.A. can reduce its reliance on coal. She also said the city has an opportunity to work with students and train them in the tenets of sustainable living.


11:10 A poet joined the "green" chorus today, reciting an ode to the environment with this closing line: "Is it the new solution/or the same old pollution?" Crowd goes wild.

11:15 The Green Party (with their green shirts) are in the audience today, along with those sporting black "Quit Coal" tees, yellow "Pee on Coal" tees and a whole host of others - residents, teachers, advocates - who have not worn their ideas on their sleeve but care pretty deeply about these issues all the same.

11:22 There are six public speakers left before Perry and Krekorian will put the finishing touches on this hearing, which is the first time the Board and Energy & Environment Committee have ever held a joint session.

11:29 And with the last public speaker, we're done for today. But this is just the start of what promises to be a months-long process to determine the specifics of all the general topics broached today. Thanks for following and feel free to jump into the fray here with any comments or questions you might have. Have a great weekend! 


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