City council delays final decision on DWP resource plan and proposed Mojave sale after lengthy public hearing

Los Angeles City Council members heard a presentation from David Freeman, general manager of the Los Angeles Department of Water and Power, and held a public hearing with labor, business and environmental groups before voting to continue action on the department’s Integrated Resource Plan and a proposed sale of the city’s interest in the Mojave generating station for one week.

Freeman told the council the department’s plan would repower roughly 2,000 megawatts of aging in‑basin plants over 10 years, add renewables and efficiency programs, and use cash from a proposed sale of the city’s roughly 20 percent stake in the Mojave coal plant to fund the early phases. Freeman said the sale proceeds would let DWP avoid borrowing and accelerate equipment purchases, emission controls and construction.

Why it matters: The plan links reliability, local air pollution and rate outcomes. Freeman argued the upgrades will reduce oxides of nitrogen from old in‑basin units even if those units run more hours. Opponents urged caution, citing volatile wholesale prices and permitting and regulatory uncertainty. The council continued the item for one week to allow further review and coordination with the Chief Legislative Analyst and the City Administrative Officer.

What council heard and who spoke: Freeman described DWP’s technical and financing case and urged the sale as the most cost‑effective way to begin repowering. Environmental and public‑health advocates — including Todd Campbell of the Coalition for Clean Air and Andrea Van Hook of the American Lung Association — urged divestment from Mojave and investment in cleaner local generation and efficiency. Labor and business representatives spoke in support of the plan on jobs, reliability and local investment: Brian Darcy (IBEW Local 18) and Diego Delagarza (Los Angeles Area Chamber) offered endorsements. The CLA and CAO told the council they wanted more time because they had received important sale documents only recently and wanted to complete due diligence.

Council action and next steps: Councilmember Hernandez moved that the department present the plan; after extended public comment and internal debate the council voted to continue consideration for one week so staff and the CLA/CAO could provide additional analysis. The vote to continue the integrated plan (and to align the timeline with the separate ordinance that would authorize the sale) passed 12–2. Councilmembers were explicit that the separate ordinance to finalize the Mojave sale remains a distinct item requiring its own vote; any councilmember withholding a vote when that ordinance is called would roll the ordinance to the following week.

Context and major concerns: Supporters said sale proceeds should be invested immediately to replace old, inefficient units with modern low‑NOx turbines and to fund energy efficiency and renewable programs. Skeptics — including the Chief Legislative Analyst and other city financial advisers — warned that statewide market and regulatory conditions remain unsettled after restructuring, and urged the council not to “gamble” on sustained high wholesale prices. Several council members asked DWP to provide scenario analyses showing the rate impact if permitting or repowering were delayed.

Votes at a glance: Motion to continue consideration of the Integrated Resource Plan and related Mojave sale documents to the council meeting of August 15 — Passed, 12 ayes, 2 noes.

What to expect next: DWP and the city’s financial staff will provide additional, itemized analyses on permitting timelines, environmental mitigation, and the rate impact of financing alternatives. The separate ordinance that would authorize the sale of the city’s interest in Mojave remains scheduled for the council’s regular agenda; councilmembers noted the ordinance requires a separate vote and could be postponed again if any member withholds their vote.

Ending: The item is scheduled for further council consideration the week of Aug. 15; DWP told the council it will provide more detailed permitting and emissions mitigation steps and financial scenarios before the next vote.