LADWP outlines $3.1 billion budget focused on sustainability and reliability initiatives

The Los Angeles Department of Water and Power (LADWP) presented its preliminary budget for the fiscal year 2025-2026 during a recent city council meeting, highlighting a commitment to sustainability and infrastructure improvements. The proposed budget totals approximately $3.1 billion, reflecting a $163 million increase from the previous year, with 88% allocated to fund 765 new positions.

Key components of the budget include $466 million dedicated to enhancing the sustainability of electricity and water services. This includes significant investments in renewable energy sources, with $542 million earmarked for renewable energy transmission and generation. The LADWP aims to replace 4,000 utility poles and 1,340 transformers to improve service reliability and reduce power outages, targeting an average of less than one outage per year.

On the water supply side, the budget allocates $938 million across various categories, including infrastructure improvements and water quality initiatives. Notable projects include a $42.6 million sedimentation plant aimed at enhancing water quality and a $88 million project for replacing aging water infrastructure.

The LADWP also addressed macroeconomic challenges, including potential impacts from wildfires and inflation on utility rates. The department is actively engaging with state and federal officials to navigate these issues and is preparing to seek adjustments to water and electricity rates in the coming months.

The preliminary budget was presented to the board on March 11 and is set for final approval on May 13, with a public broadcast scheduled before the May 31 deadline as per municipal regulations. The LADWP's focus on sustainability and infrastructure aims to ensure reliable services while managing costs effectively for its customers.