City hears DWP report showing $180 million in unpaid energy sales; council requests regular updates

Los Angeles — The Los Angeles Department of Water and Power told the City Council on May 11 that it is owed about $180 million for power sales made to statewide wholesale markets during the California energy crisis and that some payments are months overdue.

The debt traces to sales made to the California Power Exchange (CalPX) and the Independent System Operator (ISO), the department said. Bob Rozanski, assistant chief financial officer for DWP, told the council the unpaid balance is currently about $180,000,000 and that the department expects a partial payment of roughly $33,000,000 on the day of the report.

Why it matters: The unpaid sums are tied to state- and market-level disruptions that have led to bankruptcy filings and court proceedings. Council members pressed the department and the city attorney’s office for regular public updates and legal strategy because the amounts, while not expected to force rate increases, represent a material financial exposure for the city.

Rozanski outlined how DWP’s sales policy changed after the state emergency: DWP prioritized in-state sales and, after wholesale defaults in early 2001, limited sales to counterparties with prompt-payment safeguards. He said DWP has sold energy…