THE DWP RULING: Sordid details and Letters to the Editor

Under the ruling, the DWP will have to pay roughly:

• $95 million to Los Angeles Unified School District,

• $45 million to Los Angeles County,

• $39 million to the Metropolitan Transportation Authority,

• $31 million to California state agencies,

• $8 million to the Los Angeles Community College District,

• $5 million to UCLA.

Source: DAILY NEWS

FUNDING SOURCES: A court ruling may jeopardize the Los Angeles Department of Water and Power's contribution to the city's budget.

Estimated receipts for 2007-08 budget, top 6 sources (in millions)

		Percent of
	Amount	budget
Property tax	$1,397	20.6%
Utility users tax	627	9.2
Fees and fines	615	9.1
Business tax	478	7.0
Sales tax	349	5.1
DWP transfer	185	2.7

--

Source: City of Los Angeles 2007-08 proposed budget & LA TIMES

…though the DWP Employee(below) makes an interesting point about whether the

DWP’s ‘contribution’ to the city budget is legal!

LETTERS TO THE DAILY BREEZE / TDB reprinted the Daily News article by Kerry Cavanaugh

"DWP will find..."

a way around to avoid actually paying up. While we get saddled with yet another rate hike!

- MLD~ Wilmington, CA

posted: Wednesday, June 13rd at 9:37 AM

"DWP Employee"

Looks like you should have been the whistle blower and pocket some cash yourself. But question, if a DWP employee knew this was going on, don't he have a moral obligation to bring it to the attention of someone though?

- fred

posted: Wednesday, June 13rd at 9:22 AM

"DWP Rips Off Customers"

As a DWP employee, I can attest that the DWP has been ripping off its customers for years. First of all, the annual fund transfer to the city is basically a hidden tax. Even though the DWP is not supposed to make a profit, it charges millions of dollars more than it needs to for water and electricity and then "transfers" it to City Hall. On the books, it looks like the DWP broke even. However, it is extra money going to the City without looking like a tax. Second, the DWP has also been sending millions of rate payer dollars the the IBEW Local 18 union. The union is padding its wallet and building a new multi-million dollar headquarters building using money creatively transferred from DWP earmarked as funds for "safety" or "training." Both of these things should be investigated. Then, the electricity and water rates should be LOWERED. Instead, the DWP will be asking for rate increases this summer to continue to fund the city and the union.

- DWP Employee

posted: Wednesday, June 13rd at 8:24 AM

"State Law?"

Does this mean that So Cal Edison can charge the same agency and make a profit but the DWP can not? If that is true the state law should be changed so both utilities have an equal standing. They both have the same overhead. They pay the same to produce power and maintain their power grid.

- Adam

posted: Wednesday, June 13rd at 7:50 AM