Should DWP Ratepayers Pay for the City’s Streetlights?  

LA WATCHDOG - In June, 80% of Los Angeles voters rejected the Bureau of Street Lighting’s ballot measure to increase the annual Street Lighting Assessment to $125 million, almost triple the existing assessment of $45 million. 

Now the City is proposing that the Department of Water and Power fund the installation of up to 22,000 solar powered streetlights over the next five years at a cost of $330 million, preceded by a pilot project for 6,000 streetlights at a cost of $80-90 million.

This proposal lacks transparency. Buried on the last page of a seven-page agenda for the September 22 meeting of the Board of Water and Power Commissioners is an item that does not even mention streetlights.  Rather it is framed as an amendment to an existing agreement for the Commercial Direct Install Program Management and Services with Willdan Group for a five-year term and not to exceed $330 million.

Furthermore, the click through attachments to the item to be considered do not discuss the economics of the transaction and why DWP Ratepayers should be footing the $330 million bill. Nor do the attachments outline the costs and benefits of the environmental savings associated with a $15,000 solar powered street lamp.  There are more efficient uses of Ratepayer money. 

This item is on the Board’s consent calendar and will not be accompanied by a presentation by the Department or the Bureau of Street Lighting (“BSL”).  And even if there is a presentation, it will most likely be approved without any real discussion of the impact on Ratepayers by the politically appointed Board whose allegiance is to the Mayor, the Ratepayers be damned.

If the Board approves this transaction, what are the terms of repayment? Will they mirror the terms of the 2010 $47 million loan that financed LED streetlights? And while they are at it, will the City and the BSL develop a plan to pay the $90 million in long overdue payables to DWP?

BSL is underfunded and requires additional resources.  It needs to maintain, repair, and upgrade its system of 223,000 streetlights, protect the system from copper wire theft, replace LED lights and poles that are nearing the end of their useful lifecycle, install solar powered street lights, pay contractors and its electricity bill, and provide support and administrative services for its 180 employees.

The lack of transparency associated with the backroom deal is shocking.  And even more shocking is that our fiscally irresponsible City, along with the Energy and Environment Committee, wants DWP Ratepayers to fund the Bureau of Street Lighting. So no, the DWP Ratepayers should not pay for the City’s streetlights. 

(Jack Humphreville writes the LA Watchdog column for CityWatch, where he covers city finances, utilities, and accountability at City Hall. He is President of the DWP Advocacy Committee, serves as the Budget and DWP representative for the Greater Wilshire Neighborhood Council, and is a longtime Neighborhood Council Budget Advocate. With a sharp focus on fiscal responsibility and transparency, Jack brings an informed and independent voice to Los Angeles civic affairs. He can be reached at [email protected].)