{"id":444099,"date":"2010-03-18T16:14:13","date_gmt":"2010-03-18T20:14:13","guid":{"rendered":"tag:ronkayela.com,2010:\/\/1.998"},"modified":"2010-03-19T09:08:44","modified_gmt":"2010-03-19T13:08:44","slug":"running-report-on-dwp-board-special-meeting","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/444099","title":{"rendered":"Running Report on DWP Board Special Meeting"},"content":{"rendered":"<p>        <b>Cityview Channel 35 is expected to broadcast today&#8217;s DWP Board meeting at 5 p.m.<\/b><\/p>\n<p><b>1 p.m.<\/b> The DWP Commission meeting started at 1 p.m., half an hour later because Cityfone wasn&#8217;t working.<\/p>\n<p>President Lee Alpert opened by honoring outgoing Commissioner Edith Ramirez. DWP Advocacy Chairman Jack Humphreville spoke in public comment saying Ramirez never saw a rate hike she didn&#8217;t like, opposed creation of a Rate Payer Advocate and like other board members was remiss in her duty to provide oversight. A second commenter criticized the meeting as a violation of the Brown Open Meeting Act since it is a regular agenda and 72 hours notice should have been provided<\/p>\n<p>Alpert then reported February water use was at a 32 year low.<\/p>\n<p>Interim General Manager David Freeman passed on his report, saying it was in the interst of time.<\/p>\n<p><b>1:30<\/b> <b>p.m.<\/b> Alpert skips general comment, limits comment on items to two instead of three minutes and starts with Item 22: Energy Cost Adjustment Factor Cap of the Electric Rate Ordinance,<br \/>\nGeneral Provision G.7, from 0.1 cent per kilowatt hour to 0.8 cent<br \/>\nper kilowatt hour, <br \/>effective April 1, 2010.<\/p>\n<p><input id=\"gwProxy\" type=\"hidden\" \/><!--Session data--><input onclick=\"jsCall();\" id=\"jsProxy\" type=\"hidden\" \/><\/p>\n<div id=\"refHTML\"><\/div>\n<p>Steve Twining of Bel Air\/Beverly Crest NC notes Board has approved 70 percent increase in base rates from 2008-2014 and criticized lack of transparency.<\/p>\n<p>Nick Patsaouras makes his first visit back to DWP since quitting as Board President 18 months ago, saying there must be accountability. He says the .8 cent increase is unjustified, that ratepayers face doubling of rates in a couple of years but there will be no carbon dioxide reduction for five years.<\/p>\n<p><b>2 p.m.<\/b> More criticism of full 2.7 cent increase and then Sierra Club and others who support rate hike to reduce carbon emissions speak, take over and call for heavier investment in renewable energy and reduction in coal reliance. Mayor gets their full support although some mention need for greater transparency and accountability with audits by Controller&#8217;s Office.. Coalition of Clean Air and Green LA join support.<\/p>\n<p>Humphreville comes back, reporting bills already have risen by thousands of dollars a year for many people and points to Board&#8217;s lack of public examination of PA Consulting report. He says no background documents provided the public, that recommendations from PA to split ECAF into segments are not on agenda, no transparency and no planning.<\/p>\n<p>Dr. Clyde Williams points out there is no plan to get rid of coal plants, which should be done. He calls for ECAF to be limited to fluctuations in fuel prices and separation of all the other elements and says MOU with Neighborhood Councils for 90 days notice isn&#8217;t being lived up to. <\/p>\n<p>Tony Wilkinson, chair of DWP MOU Committee, expresses dismay at speed of meeting and lack of notice. He notes Board last year backed lifting 1 percent per quarter cap on ECAF but was overruled by City Council. He says .8 cent increase is necessary to clean up commitments already made but nothing else should go forward without full public debate.<b><i><br \/><\/i><\/b><input id=\"gwProxy\" type=\"hidden\" \/><!--Session data--><input onclick=\"jsCall();\" id=\"jsProxy\" type=\"hidden\" \/><\/p>\n<div id=\"refHTML\"><\/div>\n<p><input id=\"gwProxy\" type=\"hidden\" \/><!--Session data--><input onclick=\"jsCall();\" id=\"jsProxy\" type=\"hidden\" \/><\/p>\n<div id=\"refHTML\"><\/div>\n<p><input id=\"gwProxy\" type=\"hidden\" \/><!--Session data--><input onclick=\"jsCall();\" id=\"jsProxy\" type=\"hidden\" \/><\/p>\n<div id=\"refHTML\"><\/div>\n<p><input id=\"gwProxy\" type=\"hidden\" \/><!--Session data--><input onclick=\"jsCall();\" id=\"jsProxy\" type=\"hidden\" \/><\/p>\n<div id=\"refHTML\"><\/div>\n<p><input id=\"gwProxy\" type=\"hidden\" \/><!--Session data--><input onclick=\"jsCall();\" id=\"jsProxy\" type=\"hidden\" \/><\/p>\n<div id=\"refHTML\"><\/div>\n<p><input id=\"gwProxy\" type=\"hidden\" \/><!--Session data--><input onclick=\"jsCall();\" id=\"jsProxy\" type=\"hidden\" \/><\/p>\n<div id=\"refHTML\"><\/div>\n<p><b>2:30 p.m.<\/b> Freeman still holding court, quotes AB32 and<br \/>\ngovernor&#8217;s executive order to reach 33 percent renewable energy by 2020,<br \/>\n less than mayor&#8217;s 40 percent.<\/p>\n<p>Alpert kisses off questions of<br \/>\nwhether the meeting is illegal and has City Attorney to explain only 24<br \/>\nhours notice was needed because it is a special meeting.<\/p>\n<p>Freeman<br \/>\nsays small users in apartment won&#8217;t pay much more but people with<br \/>\nswimming pools and 3,000 square foot house will be hit hard but will get<br \/>\n tips on energy efficiency. Promises an integrated resources plan by<br \/>\nsummer with a lot of public input. <\/p>\n<p> CFO Jeff Peltola provides<br \/>\nfinancial info, citing PA Consulting report and says it would cost $70<br \/>\nto $80 million annually on $3 billion in borrowing if downgraded from AA<br \/>\n to A by bond rating firms.<\/p>\n<p>Freeman cuts in says this is more<br \/>\nserious than just $70 or $80 billion (sic) more. Instantaneous rate<br \/>\nincrease needed or the consequences could be dire, compares to energy<br \/>\ncrisis impact a decade ago. Alpert questions whether the transfer would<br \/>\nmake the transfer to general fund impossible. Freeman says he&#8217;d have to<br \/>\nmeet his financial obligations to meet bond rating. Board members says<br \/>\nwe get nothing for the extra bond cost. <\/p>\n<p>Peltola says utility&#8217;s<br \/>\nability to get rate hikes is what gives credibility with bond raters.<br \/><b><br \/>2:45<br \/>\n p.m<\/b>. Peltola says DWP has scaled back renewable energy purchase to<br \/>\nreach 20 percent this year when they had planned to go as high as 24<br \/>\npercent. Cost pressure led to cutback. Freeman says without ECAF, they<br \/>\nwon&#8217;t be able to make spot market purchases to reach the 20 percent<br \/>\nfigure.<\/p>\n<p>Aram Benyamin, head of power division, says 3.5 percent<br \/>\nof renewable energy coming on spot market, the most expensive. Lack<br \/>\nfunding to move ahead on wind\/solar projects without ECAF. Freeman says<br \/>\nwe&#8217;ll only be at 15 percent by 2014 without ECAF. Board is supportive.<\/p>\n<p>Peltola<br \/>\n says fuel costs rising from !.3 billion to $1.85 billion, mainly<br \/>\nbecause of renewables.&nbsp; Coal up $83 million. Commissioner Forescee<br \/>\nHogan-Rowles fully supports proposal, saying we need to get rid of coal.<br \/>\n Nobody notes DWP plan does nothing about that. Benyamin talks about<br \/>\ncoal prices rising. Freeman says DWP getting rid of Navajo plant.<\/p>\n<p>Peltola<br \/>\n says costs for various energy sources vary from $29m\/wh for coal to $59<br \/>\n to gas to $110 for solar. He adds the plan is to get rid of gas<br \/>\nproduction in coming year.to partially defray cost of renewables. <\/p>\n<p>If<br \/>\n ECAF kept in place at .1 undercollection will reach $800 million in a<br \/>\ncouple of years. It will be $6 million over same time with .8 ECAF.&nbsp; <\/p>\n<p><b>3<br \/>\n p.m<\/b>. Peltola brings up how cheap nuclear power from Palo Verde in<br \/>\nArizona is and how if it went down, costs would rise. It&#8217;s capacity down<br \/>\n from 90 percent to 70 percent now.. <\/p>\n<p>Freeman wants cap on ECAF<br \/>\ntotally eliminated for the &#8220;things that are beyond are control.&#8221;<br \/>Alpert<br \/>\n says we wouldn&#8217;t have this problem if no cap. Freeman says he&#8217;s trying<br \/>\nto be kind about past policy. Alpert gets a laugh, &#8220;You were part of the<br \/>\n past.&#8221;<\/p>\n<p>Peltola says renewable rate hike will be put into a trust<br \/>\n fund and and not touched unless &#8220;stress factors&#8221; occur, something PA<br \/>\nnoted has happened only twice.He says .3 of the .8 ECAF increase will go<br \/>\n to trust fund. That&#8217;s the budgeted case unless problems arise. Freeman<br \/>\nagain says the ECAF needs to be uncapped and automatic.<\/p>\n<p>Trust<br \/>\nfund limited to renewable, energy efficiency and similar, Peltola says.<br \/>\nFreeman says a lot of public input will come with integrated services<br \/>\nplan in summer. Peltola says DWP has become more transparent and worked<br \/>\nwith NCs. Freeman mocks critics, saying some people are &#8220;slow learners.&#8221;<\/p>\n<p>Peltola<br \/>\n says big increase up to 2.7 cents won&#8217;t happen without meeting 90-day<br \/>\ntimeframe for NCs to review if rate hikes need Council approval. They<br \/>\nrepeat that statement and City Attorney agrees that&#8217;s the MOU<br \/>\nrequirement.<\/p>\n<p>3:30 p.m. Peltola says killiing Salton Sea and Green<br \/>\n Path and low &#8220;projected&#8221; labor costs because of new five-year contract<br \/>\nwith IBEW have freed up money for renewable investments to reduce<br \/>\nreliance on natural gas.<\/p>\n<p>Residential rates being restructured to<br \/>\nprotect low users, small commericial about even with Burbank and<br \/>\nGlendale with expected increases. Generally will be on part with most<br \/>\nother utilities but LA&#8217;s large commercial will remain lower. Edison and<br \/>\nPG&amp;E charge more for third tier use than DWP proposes.<\/p>\n<p>Commissioner<br \/>\n Jonathan Parfrey, the environmentalist, applauds rate hikes and<br \/>\nrenewable purchases, talking at length of unaccounted for health costs<br \/>\ndue to mining, air pollution and other energy related problems.<\/p>\n<p>Peltola<br \/>\n says 2 cent kw\/h increase plus trust fund of .7 cents equals overall<br \/>\n2.7 increase for most businesses, offers a comparison to current rates<br \/>\nfor cold storage now at 12 cents so it&#8217;s a 22 percent increase,.<br \/>\nResidential will be higher, up to 40 percent, for many because of new<br \/>\ntier charges.<\/p>\n<p>Motion on Item 22 is modified to make trust fund<br \/>\nsubject to audit by City Controller Wendy Greuel, a major beneficiary of<br \/>\n IBEW campaign cash. <\/p>\n<p>Alpert acknowledges San Fernando Valley<br \/>\nresidents will be hit hard during hot summer months but responsibility<br \/>\nis to the DWP and ratepayers. He supports mayor&#8217;s plan and support .8<br \/>\nincrease because failure to do so would cause harm, automatic<br \/>\ndowngrading.<\/p>\n<p>He brings up transfer to city and franchise fees are<br \/>\n not unusual. Without rate hike, transfer to general fund might not<br \/>\naffordable which would harm city.<\/p>\n<p>Unanimously approved. <\/p>\n<p><b>4<br \/>\n p.m.<\/b> Item 24.(Recommended by Chief Operating Officer and Chief<br \/>\nFinancial Officer)<br \/>(Approved<br \/>\n by Interim General Manager)<\/p>\n<p>Resolution approving the estimated<br \/>\nexpenditures for fuel, purchased <br \/>power, demand-side management, and<br \/>\nrenewable portfolio standard <br \/>expenditures to be included in the<br \/>\nEnergy Cost Adjustment Factor for <br \/>the 12-month period commencing<br \/>\nApril 1, 2010 ($0.0080\/kWh Cap<\/p>\n<p>Tony Wilkinson of MOU Committee<br \/>\nsays the fuel costs need to be separated out so costs and benefis can be<br \/>\n clear and full public debate allowed.<\/p>\n<p>Steve Twining quotes PA<br \/>\nConsulting strong recommendation to create specific items outside ECAF<br \/>\nfor all elements with only fuel price fluctuations in ECAF.<\/p>\n<p>Dr.<br \/>\nClyde Williams brings up putting trust fund in ECAF only obscures what<br \/>\ngoes into it even more and limits public scrutiny and awareness. Snow<br \/>\njob, shell game are the metaphors that come to mind.<\/p>\n<p>Humphreville<br \/>\n says public has no information about Item 24, no links, no documents,<br \/>\nabsolutely nothing.<\/p>\n<p>Peltola says it&#8217;s just consistent with Item<br \/>\n11. Unanimous Approved.<\/p>\n<p>Item 23: Residential Rates:<br \/>\n23.(Recommended by Chief Operating Officer and Chief Financial Officer)<br \/>(Approved<\/p>\n<p> by Interim General Manager)<\/p>\n<p>Resolution recommending amendment of<br \/>\n Electric Rate Ordinance <br \/>No. 180127, to restructure the residential<br \/>\ntiered electric rate <br \/>to encourage energy conservation during peak<br \/>\npower usage, effective <br \/>July 1, 2010 and July 1, 2011.<\/p>\n<p>Council<br \/>\n approval by ordinance is required.<\/p>\n<p>Dr. Williams says top 10 or<br \/>\n25 percent of users should pay even more than this proposal to encourage<br \/>\n conservation and reduce use less energy from coal.<\/p>\n<p>Steve Twining<br \/>\n says middle class, single family homeowners taking it in the shorts.<br \/>\nThis is &#8220;social engineering&#8221; since rich can afford and poor not getting<br \/>\nsignificant rate hikes.<\/p>\n<p>Tony Wilkinson suggest smart meters. Jack<br \/>\n Humphreville says again &#8220;we don&#8217;t know what we are talking about.&#8221; No<br \/>\nfinancial info available, not even the resolution.<\/p>\n<p>Jeff Peltola<br \/>\nsays Tier 1 rates will be reduced. He says 93 percent of customers never<br \/>\n leave Tier 1 or Tier 2 in cooler zones of city. In warmer zone, 95<br \/>\npercent are in Tier 1 and Tier 2.<\/p>\n<p>Restructuring of lighest users<br \/>\nwill raise bills 8.5 percent from $28 to $31. Tier 2 users will go up<br \/>\n$14, Tier will rise with ECAF to $37 but with Tier 3 rates will go to<br \/>\n$66. Amazingly, in summer, residents in cooler areas use one-third more<br \/>\nenergy than in the warmer zone.<\/p>\n<p>Unanimously Approved.<\/p>\n<p>Monica<br \/>\n Harmon says majority of Council dubious, LA Times called it a &#8220;whiff of<br \/>\n dection&#8221; and DWP workers getting huge salaries and pay raises when cops<br \/>\n and other city workers are not and just about everybody having trouble<br \/>\npaying their bills. Sharply criticizes the board. &#8220;You&#8217;re not fooling<br \/>\nus&#8230;how do you sleep at night.&#8221;<\/p>\n<p><b>4:30 p.m.<\/b> Item 25. Motion<br \/>\n regarding the creation of a Ratepayer Advocate Function and <br \/>Position<\/p>\n<p> within the Office of the City Controller.<\/p>\n<p>Speaker after speaker<br \/>\nquestion how effective the RPA would be if is under the Controller, who<br \/>\nis beholden to the IBEW. <\/p>\n<p>Nick Patsaouras says &#8220;we don&#8217;t need a<br \/>\nstooge in Brian D&#8217;Arcy (IBEW boss)&#8221; in the Controller&#8217;s Office. He tells<br \/>\n them they need to reject this to erase the board&#8217;s image as a rubber<br \/>\nstamp.&#8221; Jack Humphrevile says it&#8217;s a conflict of interest for the<br \/>\nController to oversee the RPA.<\/p>\n<p>Alpert acknowledges his past<br \/>\nopposition to RPA but now feels it&#8217;s time to do something, disputes<br \/>\ncriticism with Greuel, so he wants to get it started in an &#8220;appropriate&#8221;<br \/>\n manner.<\/p>\n<p>He argues the RPA would be independent, moves GM should<br \/>\ncoordinate with Controller&#8217;s Office to create RPA. DWP would pay costs<br \/>\nwith report back in 60 days. &#8220;If that&#8217;s what everybody is crying<br \/>\nfor&#8230;let&#8217;s do it.&#8221; Never seen any compromise by Controller&#8217;s Office.<\/p>\n<p>Alpert<br \/>\n defends DWP Board&#8217;s openness and integrity. Sayles wonders if 60 days<br \/>\nlong enough.<\/p>\n<p>Freeman defends his position that he&#8217;s the ratepayer<br \/>\n advocate and expects the RPA will agree with him most of the time on<br \/>\nrate hikes. Thinks 60 days not long enough. Alpert agrees to his<br \/>\nsuggestion of 90 days.<\/p>\n<p>Forescee Hogan-Rowles chastises Freeman<br \/>\nfor using the word &#8220;H-E-L-L.&#8221; and says she opposes RPA.&nbsp; Parfrey and<br \/>\nAlpret reserve the right to reject the proposal when it&#8217;s brought back.<br \/>\nSayles said he&#8217;s concerned about putting it in the controller&#8217;s office<br \/>\nwithout looking at alternatives. <\/p>\n<p>Approved with Hogan-Rowles<br \/>\nobjecting.<\/p>\n<p>5 p.m. Item 26.(Recommended by Chief Operating<br \/>\nOfficer, Chief<br \/>\nFinancial Officer, <br \/>and Senior Assistant General Manager &#8211; Water<br \/>\nSystem)<br \/>(Approved by Interim General Manager)<\/p>\n<p>Resolution<br \/>\nrecommending amendment of the Water Rates Ordinance to <br \/>modify<br \/>\nGeneral Provision R, Shortage Year Rates, and the Second Tier <br \/>water<br \/>\nrates specified in the Ordinance to fully include water <br \/>procurement<br \/>\ncosts in the rates to encourage conservation on a <br \/>year-round basis,<br \/>\nand to reflect the actual costs of water to LADWP.<br \/>Council approval<br \/>\nby ordinance is required.<\/p>\n<p>Peltola says only Tier 2 users will get<br \/>\n higher rates, poorer customers will get slight reductions.<\/p>\n<p>Unanimously<br \/>\n approved.<b><i><\/p>\n<p>End of Coverage<\/i><\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cityview Channel 35 is expected to broadcast today&#8217;s DWP Board meeting at 5 p.m. 1 p.m. The DWP Commission meeting started at 1 p.m., half an hour later because Cityfone wasn&#8217;t working. President Lee Alpert opened by honoring outgoing Commissioner Edith Ramirez. DWP Advocacy Chairman Jack Humphreville spoke in public comment saying Ramirez never saw [&hellip;]<\/p>\n","protected":false},"author":4290,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-444099","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/444099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4290"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=444099"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/444099\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=444099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=444099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=444099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}