Policy Principles on LADWP

Reliability and Infrastructure Financing

Rates must support ongoing infrastructure renewal to ensure reliability.
Maintaining tax‑exempt bond financing and attention to LADWP’s credit rating is critical to effective capital improvement planning.
LADWP infrastructure resources (transmission lines, aqueduct connections, etc.) should be prioritized, reserved and operated first and foremost for the benefit of the customers of LADWP.
MWD should expand its water transmission system infrastructure in order to provide reliable supply to all geographic areas of Los Angeles.
Very large investments in long‑term projects should have milestones and decision points along the schedule (including updates to the cost‑benefit calculations of uncommitted project elements) to ensure goals, financing and technology remain focused and do not become dated.

Funds generated by LADWP through rates should be used solely for utility operations.
Competitive rates for water and power must be maintained to reflect the benefits of public ownership.
Rates should be set in a transparent manner with full and accurate disclosure of future impacts to customers.
Los Angeles should defend a fair cost allocation among MWD member agencies.
Los Angeles should actively seek its fair share of state and federal funding to offset investments required to meet standards for both water and electrical service.

Maintaining local generation is key to maintaining power reliability.
New wind and solar projects should be pursued based on cost effectiveness and benefits to system reliability.
Strategies intended to encourage consumer use of rooftop solar should not adversely affect the cost of energy for low‑income communities.
The LA100 Plan should be monitored to ensure it follows the City Council’s motion stating that the plan “is equitable and has minimal adverse impact on ratepayers.”
Greenhouse gas impacts of technologies such as batteries need to include reliability and total life cycle impacts, not only local or short‑term impacts.
LADWP should be a leader in promoting advanced technology to achieve reliability, affordability and environmental goals by maintaining and developing the in‑house technical expertise required to recommend sound policies.

Water and power are precious resources and must not be wasted.
Continuing conservation efforts are a key part of water and power resource management.
Conservation measures should be effective.
Subsidization of conservation measures should be commensurate with the need to incentivize their use.

Climate change needs to be addressed as it will affect water and power supplies and reliability.
Transitioning to 100% clean energy, while an urgent priority, must be done carefully so as not to negatively impact reliability and affordability.

Public ownership of LADWP benefits consumers in terms of control, responsibility and accountability.
Lower customer rates afforded by public ownership need to be considered in resource allocation, spending, and capital improvement decisions.

Dust on Owens Lake and Mono Lake should be controlled to the extent such dust control obligations are limited to the areas affected by LADWP’s diversions.
Impacts to local communities should be considered in new infrastructure sitings, improvements and operations.
LADWP should not be responsible for the mitigation of environmental problems which it did not cause.

Reuse of wastewater to augment drinking water supplies is critical to a diverse and reliable water supply.
Water quality should be maintained in accordance with all federal and state standards using appropriate cost‑effective technology.
Water supplies for Los Angeles need to be protected by properly evaluating the risks to the City of actions or lack thereof by other agencies, regulators, or courts.