LADWP presents $9.29 billion preliminary budget emphasizing reliability, renewables and water projects

Janice Quinones, CEO and chief engineer of the Los Angeles Department of Water and Power, presented the utility’s preliminary FY 2025–26 budget to the Budget Committee.

Quinones said LADWP’s preliminary net appropriations total roughly $9.291 billion and include funding for about 12,803 funded positions. The proposed power program emphasizes system reliability (pole, crossarm and transformer replacement), renewable portfolio expansion and transmission investments, and infrastructure projects to support LA100 goals. LADWP said it expects to replace about 4,000 poles, 13,900 crossarms and roughly 1,340 distribution transformers in the coming year, and noted power reliability and resiliency projects together account for a sizable fraction of power capital and operating costs.

On renewables and transmission, LADWP highlighted the McCullough‑Victorville Transmission Line Project to add renewable transfer capacity and an upgrade at Haines Generating Station (Unit 8) to reduce ocean water cooling. DWP said it expects purchased power and fuel to represent a significant share of next year’s costs and that CIP investments include energy efficiency and infrastructure work to support renewables and battery storage.

On the water side, DWP proposed $938 million for water system strategic initiatives including distribution main and trunk line work, stormwater capture, and water quality investments. The budget lists $97.2 million for stormwater capture and $88 million for the Donald C. Tillman Groundwater Replenishment Project; the Tillman project is expected to add roughly 22,000 acre‑feet per year of local supply and help the department reduce Metropolitan Water District purchases in future years.

DWP staff told committee members the department plans to issue RFPs to begin a rate study—water rates first, then power—and emphasized long‑range financial planning and bond metrics. The presentation noted a proposed city transfer of about $227.9 million (8% on cap rate ordinance sales and wholesale sales), a figure the department said is calculated from energy sales under the capped rate ordinance. Committee members asked about MOUs (with BSS and Street Services), wildfire and macroeconomic risks, EV charging expansion, and timing for rates.

DWP officials also said the financial plan includes significant capital IT investments—an enterprise resource planning move to Workday (~$78M), a cloud migration for customer care and billing, GIS and cybersecurity investments—and that proposed staffing changes add roughly 765 net new budgeted positions in the preliminary request.

Councilmembers asked for detail on recruitment and retention of linemen and on options to support port electrification work and ground‑mounted solar. LADWP said lineman recruitment and retention have stabilized and that plans for port infrastructure and receiving‑station expansions are underway to support decarbonization and increased port electrification needs.

Committee members requested rate‑study timing materials and additional follow‑ups on the proposed DWP MOUs, and the department said it will return with final budget materials to its board in May and then transmit the final budget as required by the charter.