LADWP presents $9.12 billion preliminary budget; highlights renewables, water projects and rate timing

Officials from the Los Angeles Department of Water and Power (LADWP) presented a preliminary $9.12 billion budget for fiscal 2025–26 to the Budget and Finance Committee and outlined priorities including renewable energy procurement, transmission upgrades and water‑system investments.

Jennis Quinones, LADWP chief engineer, said the department’s “presupuesto previblevan son 9.12 1000000000 de dólares” and that the proposed budget supports investments in renewables, transmission and generation upgrades, infrastructure replacement and cybersecurity. Anne Sentilly and other LADWP staff described program areas and capital projects intended to improve reliability and sustainability.

Why it matters

LADWP is the city’s primary utility provider; its capital and operating budgets affect utility rates, large infrastructure projects and citywide resilience. Committee members asked about the timing of potential water and electric rate proposals, recruitment and retention of staff, and risks from macroeconomic factors and wildfire‑related liabilities.

Key details presented

- The preliminary budget figure presented: approximately $9.12 billion. - LADWP said it plans to replace 4,000 poles next year and to replace roughly 1,340 distribution transformers as part of reliability work. - The department identified major projects including the Victorville transmission upgrades and other generation/transmission investments to support clean energy. - Water investments include distribution infrastructure, conservation and stormwater capture projects; staff flagged projects with multiyear delivery dates, including water reuse and treatment investments scheduled through 2027.

Rate and timing questions

Committee members asked when LADWP would seek rate increases. LADWP staff said the likely path is to seek water rate changes first, followed by electricity adjustments, and noted that any rate proposals would consider needed index restructuring and other regulatory factors. LADWP said timelines for rate requests will align with the department’s public hearing and board processes.

Operational risks and workforce

Officials described continued recruitment and retention work and noted a roughly 65 percent retention figure from a training program. They also discussed supply‑chain and wildfire litigation risks and ongoing conversations with state and federal partners about available funding and policy options.

Ending

LADWP told the committee the department would return with final budget materials to its board and the council per municipal deadlines, and that staff will continue to brief the committee on timing for any rate requests and on major capital projects. Committee members requested follow‑up memoranda on the LADWP MOUs mentioned during other department hearings and on the department’s capacity for MOU work with city service partners.