LADWP To Cut Its Budget By More Than $400M

LOS ANGELES (AP) — The Los Angeles Department of Water and Power is cutting its budget more than $400 million by imposing a hiring freeze, reducing nonessential training and eliminating take-home vehicles for executives.

DWP general manager Ron Nichols says the cuts announced Tuesday won’t lead to rate hikes or service reductions for its more than four million customers.

The Los Angeles Times says the utility, which has a $4 billion annual budget, is facing fuel price hikes, greenhouse-gas emissions reduction costs, rising labor costs and the price tag of replacing an aging infrastructure.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


One Comment

  1. Kim Greene says:

    The Los Angeles Times forgot to mention the $30 million they give to the LA City Council every year to drop in that hole the LA City Council calls the budget deficit..if they have all that money to much can they be overcharging us on a yearly basis?

  2. LOU says:

    David Goldstiein did a great report on the DWP a year ago, he needs to do one on the LA city council salary,cola,perks,etc.

  3. Den says:

    I won’t believe it until it actually happens.

  4. Roger Cook says:

    Kim Greene; DWP gave the City 170 Million last year ( part of which was held back b4 rate hike issue resolved) The DWP has a surplus due to financial saavy (just like a large corp except DWP’s profits go back into infrastructure upgrades and improvements). And if your concerned about profits at the expense of your POWER bill (have to read bill closely, look for KWH chrges only because there are other charges on your bill NOT related to electric. Namely sewer, water and trash) Compare your bill to someone who has Edison power. You’ll be glad u have DWP !!

  5. Roger Cook says:

    Please don’t allow a ‘hostile takeover’ of DWP by Bernhard Parks and the LA City council !!! The DWP is a well run, profitable company that will only be stripped, gutted and broke just as the City of LA is now. Maybe we should let the Water and Power Board and officers take over the city’s finances…they couldn’t do any WORSE than the City council and judging by their past, would probably have Los Angeles solvent, sane and in the black within a couple of years !!

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