|Type||Water infrastructure and electricity|
|Headquarters||John Ferraro Building|
111 North Hope Street
Los Angeles, California
|Annual budget||US$6.1 billion (fy2017/2018)|
The Los Angeles Department of Water and Power (LADWP) is the largest municipal utility in the United States, serving four million residents and businesses. It was founded in 1902 to supply water to residents and businesses in Los Angeles and surrounding communities. In 1917, it started to deliver electricity. It has been involved in a number of controversies and media portrayals over the years, including the 1928 St. Francis Dam failure and the books Water and Power and Cadillac Desert.
LADWP can currently deliver a maximum of 7,880 megawatts of power and, in each year, 160 billion US gallons (606 million cubic meters) of water.
By the middle of the 19th century, Los Angeles's rapid population growth magnified problems with the city's water distribution system. At that time a system of open ditches, often polluted, was reasonably effective at supplying water to agriculture but was not suited to providing water to homes. In 1853, the city council rejected as "excessive" a closed-pipe system that would serve homes directly. As a solution, the city allowed "water carriers with jugs and horse-drawn wagons…to serve the city's domestic [water] needs." It took until 1857 for the council to realize that the system needed to be updated, which led them to grant William G. Dryden franchise rights to provide homes with water through a system of underground water mains. The initial system served only a few homes using an unreliable network of wooden pipes. In December 1861, heavy rains destroyed the system and Dryden gave up his franchise. The city attempted contracting out water distribution rights to others, but none of the systems that resulted from these contracts was successful.
The city's previous unsuccessful attempts to allow others to develop a water system on its behalf prompted the city council to relinquish its rights to the water in the Los Angeles River in 1868, which benefited John S. Griffen, Solomon Lazard, and Prudent Beaudry, three already successful businessmen. This change was at the expense of the city of Los Angeles, which could no longer benefit from their municipal water distribution business. The three men created the Los Angeles City Water Company, which violated many of the provisions of its lease on the Los Angeles River, including secretly tunneling under the river to extract 150 times as much water as the lease allowed. As the end of the lease drew near in the mid-1890s, popular support began to build for a return to complete municipal control of the local water supply.
The leader in the fight to end private control of the water supply was Fred Eaton. Eaton proposed that tax revenues would enable the city of Los Angeles to provide water to its residents without charging them for the use of water directly. Eaton's views were especially powerful because of his distinguished record of achievement in both the private and public sector. During Eaton's nine-year term as the superintending engineer of the Los Angeles City Water Company, he headed a large expansion of the company's water system. Eaton left his position in 1886 when he was elected City Engineer. In his new public position, Eaton devoted his time to updating and expanding the sewer system. Eaton felt that the Los Angeles City Water Company was not serving the citizens of Los Angeles well because of high rates, and because the company frequently paid dividends to its stockholders instead of improving the water system. In early 1897, city engineers began creating plans for an updated water system while the city council informed the Los Angeles City Water Company that its lease would not be renewed beyond its expiration date, July 21, 1898. In early 1898, the city began talks with the Los Angeles City Water Company about taking over the company's current water system.
Throughout the negotiations, it became clear that it was necessary for the current senior employees of the Los Angeles City Water Company to keep their jobs in order to ensure that the water system could continue to operate. It was not guaranteed, however, that William Mulholland, Eaton's protégé and the man who took over the job of superintending engineer when Eaton was elected city engineer, would have a position working with the city-owned water system. Mulholland was not popular with city officials because he did not produce records that the city requested during negotiations. Near the end of the talks between the city and the water company, it was discovered that neither the requested records nor a map of the water system existed. Mulholland, who was supposed to be in charge of the non-existent records, was never a fan of paperwork and claimed that he had memorized all of the necessary information, including the size of every inch of pipe and the age and location of every valve. Mulholland secured a job with the city when he successfully demonstrated his ability to recall the information. After Mulholland was assured a job with the city, he intervened with the company's principal stockholder, advising him to accept the city's offer of two million dollars for the system.
The Los Angeles Bureau of Power and Light was formed in 1911 to administer the electrical system in the city that supplied power generated by private companies. In 1922, it purchased Southern California Edison's (SCE) distribution system within the city limits. It expanded further in 1937 by purchasing the Los Angeles Gas and Electric Corporation. Also in that year, the Bureau 1937 merged with the Bureau of Water Works and Supply to become the Los Angeles Department of Water and Power (LADWP). After more territory swaps were made with SCE, LADWP became the sole electrical service provider for the City of Los Angeles in 1939.
The Bureau first offered municipal electricity in 1917 when Powerhouse No. 1, a hydroelectric power plant located in San Francisquito Canyon and which is powered by the Los Angeles Aqueduct, began generating electricity. It ultimately produced 70.5 megawatts and is still in operation, producing 44.5 megawatts. Three years later, in 1920, Powerhouse No. 2 was added. The powerhouse was destroyed when the St. Francis Dam failed, but the plant was completely rebuilt and back in service by November 1928. It remains in operation today, having the capacity to generate 18 megawatts.
On January 17, 1994, the city of Los Angeles experienced its one and only total system black-out as a result of the Northridge earthquake. Much of the power was restored within a few hours.
In September 2005, a DWP worker accidentally cut power lines that caused over half of Los Angeles to be without power for one and one-half hours.
In 1928 the St. Francis Dam, built and operated by the LADWP, which at the time the water department division was named the Bureau of Water Works and Supply, collapsed catastrophically with its reservoir filled. The disaster, considered to be one of the worst American civil engineering disasters of the 20th century, remains the second-greatest loss of life in California's history after only the 1906 San Francisco earthquake and fire. The ensuing flood caused devastation to present-day Valencia, Newhall and the cities in the Santa Clara River Valley, taking the lives of up to 425 people. The high death toll was due, in part, to confusion and mis-communication by and between employees of both the LADWP and Southern California Edison, who also had facilities and operations in the area, which led to the lack of prompt warnings being sent to the downriver communities. Those cities included Piru, Fillmore, Santa Paula, and San Buenaventura. Mulholland assumed full responsibility for the disaster and retired the next year. The pall of the disaster hung over him until his death in 1935.
The LADWP has been a leading actor in the struggle over access to water from the Owens Valley, starting with its initial acquisition of water rights, as well as buying out farms and asserting control over Mono Lake and Owens Lake.
The LADWP and William Mulholland played a key role in the development of Hoover Dam and bringing its energy to Los Angeles. The LADWP continued to operate the Hoover Dam electrical facility until 1987.
On October 10, 2011, the LADWP, along with the Community Redevelopment Agency of Los Angeles and the Los Angeles Cleantech Alliance, founded the LA Cleantech Incubator.
The LADWP has been criticised for allowing excessive overtime. In 2018, 306 of its workers took home more than $100,000 in overtime pay, while the agency paid $250 million for overtime, a new high for the agency.:: : The most egregious example of this is a security worker who was paid $314,000 in overtime, on a listed base pay of $25,000, along with three peers who were paid more than $200,000 overtime each. (The nationwide median wage for security officers was $28,500 in 2018.): : One policy which enables these large overtime payouts is a provision in the union contracts which requires a normal shift worked after more than one hour of overtime to be paid at double time, as well as that overtime is not based on working more than 40 hours in a week, but on working time beyond a "normal" shift.:
A separate study found that LADWP's yearly payroll expense per customer was $490, significantly higher than the nationwide median for large utilities of $280 per customer.::
As of 2017, the LADWP maintains a generating capacity of 7,880 megawatts, in excess of the peak demand of 6,502 megawatts by the city of Los Angeles. The LADWP operates four natural gas-fired generating stations within city boundaries, which combined with other natural gas sources, account for 34% of capacity. It receives 19% of its electricity from coal-fired plants in Utah and Arizona, but plans to transition away from coal by 2025. A further 9% is generated using nuclear power, which is from the Palo Verde Nuclear Generating Station in Arizona. It receives about 5% of its electricity from hydropower, most coming from Hoover Dam and the rest coming from the aqueduct system itself as the water descends from its mountain sources.
The LADWP, along with raw water deliveries and lake level management from the California Department of Water Resources, also operates the Castaic Power Plant as a pumped storage facility. Water flows from the upper reservoir to the lower during the day, generating power when demand is highest, and is pumped back up at night when excess capacity is available. About 1,600 megawatts, or 22% of the total capacity, is generated at this facility.
LADWP has 1.4 million electric customers.
The Los Angeles City Council voted in 2004 to direct the LADWP to generate 20% of its energy (excluding Hoover Dam) from clean sources by 2010, a goal which was met. The LADWP expects to achieve 25 percent renewables by 2016 and 33 percent by 2020. As of 2014[update], "green power" sources accounted for 20% of the LADWP's capacity, including the 120 MW Pine Tree Wind Farm, the largest municipally-owned wind farm in the United States. LADWP is also investing in photovoltaic solar throughout the Southwest and geothermal sources in the Salton Sea area.
As of 2016, the largest component of the power supply was natural gas at about 34%. The second-largest component was renewable energy, at about 29%. Coal-fired power made up a further 19%. By contrast, the California investor-owned utilities SCE, PG&E, and SDG&E, had all eliminated their use of coal. In 2013, LADWP announced it would become coal-free by 2025 by divesting its 21% stake in Navajo Generating Station in 2016 and converting the Intermountain Power Plant to run on natural gas.
Further information: Undergrounding
Most of the power lines in Los Angeles were built above-ground before it became customary to run power lines below-ground. Starting in 2007, LADWP has a long-term project to upgrade the overhead power lines and convert them to underground. This difficult conversion has been slowed by budget constraints, the impact on traffic, the pursuit of other modernization projects, and the lingering effects of a workforce reduction over the last decade. Budget issues are particularly acute in the department's transmission system, where underground transmission costs about 10 to 14 times the cost of overhead transmission, per unit length, and the technical and environmental challenges which confront such installations. Additionally, undergrounding of the three 500 kV transmission lines (five lines, if the Pacific AC Intertie's two 500 kV lines terminating in Los Angeles are included) is presently technically infeasible. Upgrading the overhead lines is expected to take 10 to 15 years. The upgrading of LADWP's overhead power lines consists of eliminating the V-shape brackets on the power poles that are holding up the crossarm and replacing them with cross-brackets that are put on the crossarm. Some of the wooden power poles are being replaced with metal poles. Also included in the upgrade of overhead power lines, are the upgrades of the insulators for the lower voltage distribution power lines, which are more modern than the old-fashioned ceramic insulators. The new modern insulators for lower voltage distribution lines look identical to Southern California Edison's distribution insulators.
The department recently completed two 230 kV underground projects using an innovative cable technology which does not utilize oil as an insulator. The oilless cable mitigates the environmental issues associated with oil-type cable.
The 315 megawatt capacity Scattergood Steam Plant (Unit 3) to West Los Angeles (Receiving Station K, "Olympic") 230 kV line is having to be replaced after only 45 years of operations, due to multiple failures within this rather long single-circuit, oil-filled, "pipe type" cable.
The LADWP provided more than 200 billion US gallons (760 million cubic meters) of water in 2003, to 681,000 customers, pumping it through 7,226 miles (11,629 km) of pipe. In fiscal year 2004–2005:
The use of water from specific sources can vary greatly from year to year.
The prospect of increased demand coupled with reduced supply from the Mono and Owens basins is causing the LADWP look into a number of new water sources, including a new direct connection to the California Aqueduct, increased use of recycled water, use of stormwater capture and reuse, and increased conservation. Many of the old pipelines are beginning to wear out, or are at capacity and insufficient to handle future demand. LADWP has undertaken pipeline replacement projects on many L.A. boulevards like Exposition and Olympic.
In addition to the city of Los Angeles, LADWP also provides services to parts of the following communities:
Over its entire service territory, LADWP serves four million residents and businesses.
The LADWP is governed by the five-member Los Angeles Board of Water and Power Commissioners, who are appointed by the Mayor of Los Angeles and confirmed by the Los Angeles City Council for staggered, five-year terms. The board sets policy for the Department of Water and Power, the city-owned electricity and water company, and votes on utility rates, renewable energy projects, and pension tiers for LADWP employees.
The Board of Water and Power Commissioners meets regularly on the first and third Tuesdays of each month at 11:00 a.m. Regular meeting agendas are available to the public at least 72 hours before the Board meets.
On August 16, 2013, Mayor Eric Garcetti nominated four new appointees to the Board of Water and Power Commissioners: Mel Levine, William W. Funderburk, Jr., Michael F. Fleming, and Jill Banks Barad. The four commissioners were confirmed by the Los Angeles City Council on September 11, 2013, joining Christina E. Noonan on the panel. Noonan was previously appointed by former Mayor Antonio Villaraigosa.
The General Manager, Senior Assistant General Managers, Chief Financial Officer, and Managing Senior Assistant City Attorney (under the Los Angeles City Attorney) manage operations.
On January 31, 2014, Ron Nichols resigned as chief of the LADWP amid ongoing controversies regarding the LADWP.
On February 21, 2014, Marcie L. Edwards was unanimously confirmed by the Los Angeles City Council on February 21, 2014. She is the first woman to lead the LADWP. At the time of her nomination, Edwards was Anaheim's City Manager. Prior to her appointment as Anaheim's City Manager, Edwards served as chief of Anaheim Public Utilities for 13 years. Edwards previously worked at the LADWP for 24 years, starting at the age of 19 as a clerk typist.
In August 2016, Marcie L. Edwards announced her retirement. On August 16, 2016, the Los Angeles Board of Water and Power Commissioners appointed David H. Wright Interim General Manager, and requested the CIty Council to confirm his appointment as permanent General Manager. Wright had been with LADWP serving as Chief Operating Officer and formerly Assistant General Manager of the Power System since February 2015. As LADWP's Chief Operating Officer, Wright oversaw Water and Power Systems, Customer Service and Information Technology Services, Supply Chain Services, Human Resources, Fleet Services, Equal Employment Opportunity Services and Communications, Marketing and Community Affairs.
LADWP is headquartered in a Corporate-International Style building designed by A.C. Martin & Associates and completed in May 1965. The 17-story building was constructed on Bunker Hill with the purpose of consolidating 11 building offices scattered across Downtown Los Angeles and housing LADWP's 3,200 employees. On September 21, 2012, it was designated as a Los Angeles Historic-Cultural Monument.
The General Office Building of the Los Angeles Department of Water & Power was renamed the John Ferraro Building on November 16, 2000, after the late Los Angeles City Councilman John Ferraro. The building was featured extensively in the 2010 science fiction thriller film Inception.
Unusually for a municipal public utility, LADWP has been mentioned several times in popular culture, both fiction and nonfiction:
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