Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities Budget topic
No spam. Unsubscribe anytime.
LADWP presents $9.29 billion preliminary budget emphasizing reliability, renewable expansion and IT upgrades
Summary
LADWP executives presented a preliminary $9.29 billion budget for FY 2025-26 to the budget committee, with major capital spending for power reliability, renewable integration, water main replacements and enterprise IT investments; the presentation included a planned $227.9 million city transfer.
Los Angeles Department of Water and Power executives presented the utility's preliminary fiscal year 2025-26 budget to the City Budget and Finance Committee on May 2, outlining roughly $9.29 billion in appropriations with major capital and operating investments across power and water systems.
Why this matters: LADWP runs the citys water and power systems and funds operations primarily through rates and enterprise revenues. The departments capital and operating plans influence city infrastructure reliability, resilience planning (including LA100 goals), rate-setting, and the city's fiscal position because LADWP makes a sizable annual transfer to the city.
Key figures and priorities: LADWP reported approximately $9.29 billion in preliminary appropriations and roughly 12,803 funded positions in its staffing plan. For power, the department identified $6.66 billion to support power-system priorities: about $917 million for transmission and distribution reliability projects, $542 million for renewable-procurement/transmission to support the renewable portfolio, $918 million for infrastructure upgrades (including Unit 8 replacement at Haynes Generating Station to remove ocean water cooling), and $159 million for energy-efficiency programs. The power plan aims to replace 4,000 poles and 13,900 cross arms and about 1,340 distribution transformers next fiscal year.
Water priorities: On the water side LADWP listed $938 million for the water system plan, including $738 million in infrastructure (distribution main and trunk-line work), $354 million for water supply (stormwater capture and LA Aqueduct additions) and $425 million for water quality projects. Notable water projects include the Donald C. Tillman Groundwater Replenishment project (budgeted about $88 million this fiscal year) and Fairmont Sedimentation improvements. Tillman is expected to add about 22,000 acre-feet of local supply and contributed to LADWPs projection of local water supply rising to roughly 22% of the city mix in the coming year while MWD purchases may decline.
IT and back-office modernization: LADWP emphasized enterprise IT investments: $78 million for an enterprise resource planning (Workday) project, $43.9 million for customer care and billing cloud migration, $12.3 million for GIS and $37.9 million for cybersecurity enhancements.
Transfers and rates: LADWP said its preliminary proposed city transfer is $227.9 million. Finance staff described the transfer calculation as applying an 8% cap-rate transfer to energy sales on LADWPs capped rate ordinance (used historically in lieu of franchise fees). Committee members asked about timing for any rate proceedings; LADWP said it expects to start a water-rate consultant RFP in coming months and to sequence water and then power rate work.
Committee questions: Members asked about wildfire, tariffs, and the macroeconomic environment; LADWP leaders said they are coordinating with federal and state partners to pursue available funding and manage risk. The committee also asked about plans for EV chargers, port electrification, and contracting with Caltrans/BOE for ground-mounted solar on city land; LADWP indicated active projects and joint planning but said each project requires further analysis.
Next steps: LADWP will finalize its budget with the LADWP Board in May; the department will return with a final budget transmittal to the city in line with charter deadlines. Committee members requested memos and follow-ups about transfer calculations, potential interagency MOUs and opportunities for public land to host renewable energy and EV infrastructure.
