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City receives and files report on sale of DWP interest in Mojave Generating Station
Summary
The Los Angeles City Council received and filed a report on the Department of Water and Power’s sale of part of the city’s interest in the Mojave Generating Station, after councilmembers questioned why only 10% was sold and how proceeds and future use of capacity will be handled.
The Los Angeles City Council on Dec. 21 received and filed a report on the Department of Water and Power’s (DWP) recent sale of part of the city’s interest in the Mojave Generating Station, voting 10-0 to receive the report.
Councilmember Holt opened discussion by recounting the sequence of sales and asking DWP staff to explain why the city ultimately sold a 10% interest instead of the full 20% previously discussed. Holt said the sale left the city without an asset that could help meet local needs during the utility’s repowering work.
The council received an explanation from Department of Water and Power staff that the city initially pursued selling 20% but later retained 10% after the utility determined it needed the extra capacity while repowering in-basin generation stations. The staff member said Salt River Project, a joint owner, exercised a right of first refusal and took the other 10% rather than AES completing the purchase.
Holt expressed concern that the portion sold to Salt River Project could be used outside California and said the sale could put upward pressure on local rates in the future. A DWP representative responded: "It is the position of the Department of Water and Power that our rates will not increase." The council did not amend the action; the committee report was received and filed.
Council action and vote: the clerk recorded 10 ayes and the council approved receiving and filing the report.
Clarifying details discussed during the meeting included competing figures cited in the chamber for the payment made to AES after Salt River Project exercised first refusal; council discussion recorded multiple different numbers and there was no single settled amount on the record. The DWP staff stated the city is using the 10% interest it retained for daily load, while Salt River Project intends to use the interest it purchased for its own customers.
The council did not direct a specific follow-up vote on reversing any sale during this session; Holt had mentioned reconsideration but the formal council action at this hearing was to receive and file the report.
