April 16, 2010
| Monty Kroopkin |
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6:42 AM (12 hours ago) |
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10:01 AM (9 hours ago) |
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Apr 15 (2 days ago) |
You Have Been Pre-Approved For A DWP Rate Hike
Wednesday, April 14, 2010
By
Walter Moore, WalterMooreSays.com
Today, the City Council did
exactly what I predicted it would do back on April
6, 2010: screwed you.
This is the Neville Chamberlain quid pro quo metaphor,
where you play the
rule of a Sudetenland resident.
The quid
part is what happened today. Garcetti, Perry, Hahn and their
co-conspirators passed an ordinance this quarter approving a massive DWP
rate hike next quarter. That means the DWP will receiver hundreds of
millions of dollars per year above and beyond the $2.7 billion per year
it already receives -- from you, of course.
The quo
part should arrive in a day or two. Villaraigosa will announce
that, lo and behold, the DWP can afford to transfer millions and
millions of your dollars to City Hall after all. The immediate transfer
will be no more than $73.5 million. But, going forward, count on at
least $200 million per year flowing from you to the DWP to City Hall as a
“transfer” of “surplus” funds. And don’t forget: you will continue to
pay a utility tax to the City, on top of your higher-than-ever bills.
Garcetti will tell you the
rate hike approved today is just for three months. But you and I both
know your taxes and rates will go in only one direction -- up -- as long
as Villaraigosa and the Spring Street Gang stay in office.
What can you do about this?
You can sit there and cry
in your beer, or you can sit there, cry in your beer and vow to get even
by signing the petition to recall Villaraigosa on April 20, 2010, or as
soon thereafter as possible.
On April 20, 2010, I will
have the honor of being the first person to sign the petition, which I
will do at City Hall, during the “Public Comment” portion of the City
Council meeting.
Can’t make it that day?
Subscribe to my email newsletter to find out where and when you can sign
thereafter. (Here’s the url: http://groups.google.com/group/WalterMoore.)
Fight back, would you?
There’s no “down” side to signing the petition. It costs you nothing to
sign. And if it doesn’t get enough signatures, so what? At least
you’ll know YOU signed it, and therefore can’t be blamed for three more
years of Villaraigosa.
Look, you’re either part of
the problem (lazy voters who won’t lift a finger to fight back) or part
of the solution (lazy voters who will lift a finger to fight back).
With $73 million in revenue and the jobs of 51 municipal workers at stake, the City Council took steps Wednesday to end a month-long standoff with the DWP by raising electric rates.
By a slim majority, the council authorized an increase that would amount to about 4.5 percent, or $4 on the average household's bimonthly bill. It would take effect July 1 and be reviewed by Oct 1.
The vote came a day before the Board of Water and Power Commissioners had scheduled a special meeting of its own to consider a rate hike.
"We heard that they're finally going to meet on this and we want to reiterate what our position was, nothing more, nothing less," said City Council President Eric Garcetti, one of eight members to vote in favor of the increase.
The increase of .6-cent per kilowatt hour is identical to the hike the council authorized weeks ago - one deemed insufficient by the Department of Water and Power.
The DWP board came back with a .7-cent hike, prompting an angry council to veto any hike whatsoever.
The utility then refused to follow through with the $73 million transfer of surplus revenue to the cash-strapped city. Without the transfer, the city's budget deficit is expected to grow to $221 million this fiscal year, instead of shrinking to $148.9 million.
And on Wednesday, Raman Raj, acting general manager of the DWP, ratcheted up the pressure by saying the agency would not follow through with plans to hire 51Los Angeles city workers targeted for layoff as a cost-cutting measure.
Council members blasted the DWP for that latest salvo even as they offered the rate hike as a compromise.
"The mayor needs to replace this (DWP) commission that has been holding the city hostage," said Councilman Dennis Zine, who with Bernard Parks, Jan Perry, Paul Krekorian and Tom LaBonge opposed the plan. "It is ridiculous that this one agency feels it can act this way."
Although he approved the rate hike, Councilman Paul Koretz said he was amazed at the utility's actions.
"I keep looking for signs of sanity on the horizon from them and it doesn't seem to come," Koretz said. "You wonder if they don't want to be part of the city family, maybe we should disown them."
Perry said the utility has maintained an attitude of arrogance during discussions about the rate hike.
"The day before, when we were discussing an independent ratepayer advocate, they didn't show up," Perry said. "Now, a memo like this - it is outrageous."
DWP officials declined to respond publicly Wednesday to the council's comments or its rate-hike offer, but the Board of Water and Power Commissioners has scheduled a special meeting for 5 p.m., today to consider the proposal.
Mayor Antonio Villaraigosa praised the council's action.
"I'd like to thank the members of the City Council who today offered a reasonable compromise which protects ratepayers, the financial health of the Department of Water and Power, and commits the DWP to renewable energy, and I urge the members of the Commission to adopt this reasonable plan," Villaraigosa said.
The DWP has been seeking a series of quarterly increases in its Energy Cost Adjustment Factor to help pay for green energy projects as well as help stabilize the utility's shaky finances.
Ultimately the utility is seeking a series of quarterly hikes that could raise some high-volume customers' bills by up to 28 percent.
The battle so far, however, has centered on only the first of those quarterly hikes.
Garcetti and Councilman Herb Wesson were the principal authors of the new plan. They called it an effort to resolve the month-long dispute with the DWP over its final transfer to the city out of a series of payments totaling $220 million.
Also, included in the proposal is a ban on any increase in the DWP baseline rate. The utility had said it would need a 2.9 increase in the baseline next year, on top of the increases in the ECAF.
Council members said they want to see more evidence on the need for further hikes.
The DWP-council battle has played out as part of a larger drama over an estimated $700 million deficit the city faces over the next year and a half. Villaraigosa is expected to release his 2010-11 budget proposal Tuesday as he also delivers his latest State of the City address.
Also Wednesday, the council approved the transfer of $80 million from its reserve fund to cover salary costs through the year. If the DWP transfer does come through, it means the city will end the year with about a $100 million reserve fund.
The council also agreed to allow the hiring of a new class of 45 police officers on April 26 and, temporarily, a second class of 45 in May.
Perry and Parks had sought a delay until the new budget is released next week.
Parks, who chairs the Budget and Finance Committee, said the question was whether the city could afford the new officers.
"It's $1.4 million this year, but $6.4 million next year," Parks said. "For every new officer we hire, it means we have to lay off 1.5 workers. The question is what can we afford."
Zine and others, however, argued the city had already decided to hire up to 9,963 officers this year and is behind that level.
Police Chief Charlie Beck said the department is looking at the prospect of 49 officers retiring by June 30 and the new class would help fill that gap.