DWP unveils $88M Groundwater Replenishment Project budget and initiatives

The Los Angeles City Council held a budget hearing on May 2, 2025, focusing on key financial allocations and projects for the upcoming fiscal year. The meeting highlighted several significant initiatives, including the Groundwater Replenishment Project and various technology upgrades within the Department of Water and Power (DWP).

The Groundwater Replenishment Project, also known as the Donald C. Tillman project, is a major multiyear effort expected to be completed by 2031. For the current program year, $88 million has been allocated to this initiative, which is a collaboration between the Bureau of Sanitation and the Environment, with an anticipated completion date of 2027.

In addition to water projects, the DWP outlined substantial investments in technology and infrastructure. This includes $78 million for enterprise resource planning, $43.9 million for migrating the customer care and billing system to the cloud, and $12.3 million for geographic information systems (GIS). Cybersecurity is also a priority, with $37.9 million earmarked for enhancements in this area.

The DWP reported that residential power bills remain competitive, and the proposed budget includes a preliminary city transfer of $227.9 million. On the water side, the average residential water bill aligns with similar utilities, and over 50% of customers are using less than eight billing units per month, reflecting a commitment to conservation.

The budget was submitted to the board on March 11 and is set for final approval on May 13, with a transmission deadline of May 31 in accordance with city charter requirements. Council members expressed interest in the impact of macroeconomic trends on utility operations, including wildfires and federal energy policies. The DWP is actively engaging with state and federal agencies to navigate these challenges and minimize potential impacts on ratepayers.

Looking ahead, the DWP plans to review water rates in the coming months, followed by power rates. Recruitment and retention of field staff, particularly linemen, have stabilized, with a steady influx of new hires balancing attrition rates.

Overall, the budget hearing underscored the DWP's strategic focus on infrastructure investment, technology upgrades, and proactive financial management to ensure sustainable utility services for Los Angeles residents.