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RESOURCE MANAGEMENT IN THE 1990s | RESOURCE MANAGEMENT IN THE 1990s 9'112170364 911209 | ||
9'112170364 911209 | |||
., PDR AOOCK,05000528 | ., PDR AOOCK,05000528 | ||
~Ãi$ 'PDR' | ~Ãi$ 'PDR' | ||
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.members are appointed by the Mayor and confirmed by the City Council for terms of 1 | .members are appointed by the Mayor and confirmed by the City Council for terms of 1 | ||
five years. The, Board establishes water and electric rates, subject to approval by the City Council. | five years. The, Board establishes water and electric rates, subject to approval by the City Council. | ||
DEPARTMENT OF WATER AND POPOVER DANIELW. WATERS General Manager and Chief Engineer | DEPARTMENT OF WATER AND POPOVER DANIELW. WATERS General Manager and Chief Engineer ELDON A. COTTON Assistant General Manager Power JAhIES F. WICKSER Assistant General Manager Water NORMAN L. BUEHRING Assistant General Manager External and Organizational Services NORMAN J. POWERS Chief Financial Officer | ||
ELDON A. COTTON Assistant General Manager Power JAhIES F. WICKSER Assistant General Manager Water NORMAN L. BUEHRING | |||
Assistant General Manager External and Organizational Services NORMAN J. POWERS Chief Financial Officer | |||
,,8 | ,,8 | ||
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RESOURCES THAT MAKE THIS ONE OF THE MOST VIBRANT CITIES IN THE WORLD. | RESOURCES THAT MAKE THIS ONE OF THE MOST VIBRANT CITIES IN THE WORLD. | ||
RESOURCE'ANAGEMENT IN THE 1990s TURNING THE CORNER ON ELECTRIC VEHICLES i | RESOURCE'ANAGEMENT IN THE 1990s TURNING THE CORNER ON ELECTRIC VEHICLES i t e near y 1 50 years since it was coined, the term "smog" has come to symbolize the darker side of life in Los Angeles. And, despite decades of rhetor'ic and good intentions, smog e continues to blight the environment of this sunswept region.'"9 A corner in the war against air pollution may have been turned recently, however, when the South I Coast Air Quality Management District (SCAQMD) issued a multiphase plan that included proposals to curb our reliance on gasoline-powered automobiles. 'il In-eluded in the plan was a'call for increased use of electric vehicles in the Los Angeles | ||
t e near y 1 50 years since it was coined, the term "smog" has come to symbolize the darker side of life in Los Angeles. And, despite decades of rhetor'ic and good intentions, smog e continues to blight the environment of this sunswept region.'"9 A corner in the war against air pollution may have been turned recently, however, when the South I Coast Air Quality Management District (SCAQMD) issued a multiphase plan that included proposals to curb our reliance on gasoline-powered automobiles. 'il In-eluded in the plan was a'call for increased use of electric vehicles in the Los Angeles | |||
,, I Basin. The SCAQMD's target is to repla'ce 70 percent of the gasoline vehicles in Southern California with electric (or other ultra-low-emission) vehicles. by the year DECAF OR REGULAR? 2010 an ambitious schedule, supporters admit, but an achievable one. 'll For-tunately, the Department of Water and Power spurred by the Electric Vehicle Initiative fathered by Los Angeles City Councilman Marvin Braude 'has already 1 | ,, I Basin. The SCAQMD's target is to repla'ce 70 percent of the gasoline vehicles in Southern California with electric (or other ultra-low-emission) vehicles. by the year DECAF OR REGULAR? 2010 an ambitious schedule, supporters admit, but an achievable one. 'll For-tunately, the Department of Water and Power spurred by the Electric Vehicle Initiative fathered by Los Angeles City Councilman Marvin Braude 'has already 1 | ||
launched a major development program,'in conjunction with Southern California | launched a major development program,'in conjunction with Southern California | ||
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RESOURCE MANAGEMENT-IN THE 1990s-0 | RESOURCE MANAGEMENT-IN THE 1990s-0 | ||
$ 100 cash rebates for residential installations of ultra-low-flush toilets, home water surveys to boost efficiency, lawn-watering guides, conservation kits with low-flow shower heads and toilet-tank displacement bags, and low-interest loans for such water-saving devices as drip irrigation. More'than 1.3 million low-flow shower 0 | $ 100 cash rebates for residential installations of ultra-low-flush toilets, home water surveys to boost efficiency, lawn-watering guides, conservation kits with low-flow shower heads and toilet-tank displacement bags, and low-interest loans for such water-saving devices as drip irrigation. More'than 1.3 million low-flow shower 0 | ||
heads have been distributed to our customers. '5 Golf-course-operators and | heads have been distributed to our customers. '5 Golf-course-operators and | ||
,other large-turf customers were trained on ways to irrigate more efficiently, while Water Conservation A'dvisory Committees are being set up for commercial and JJ industrial users anxious to cut operating costs by reducing water consumption. | ,other large-turf customers were trained on ways to irrigate more efficiently, while Water Conservation A'dvisory Committees are being set up for commercial and JJ industrial users anxious to cut operating costs by reducing water consumption. | ||
JJ | JJ | ||
'i! Teams of "Drought Busters" trained in water conservation began touring the I'LWASH city in specially marked vehicles'to spot waterwaste and convert wasters into | 'i! Teams of "Drought Busters" trained in water conservation began touring the I'LWASH city in specially marked vehicles'to spot waterwaste and convert wasters into YOU DRY | ||
YOU DRY | |||
'savers. 'll A $ 2 million advertising campaign in major print and broadcast media, public information activities,"a Conse'rvation Hotline and a host of land-scape water management efforts also contributed to a dramatic reduction in water use during the last three months of the 1989-90 fiscal year. li "Our biggest ii( < | 'savers. 'll A $ 2 million advertising campaign in major print and broadcast media, public information activities,"a Conse'rvation Hotline and a host of land-scape water management efforts also contributed to a dramatic reduction in water use during the last three months of the 1989-90 fiscal year. li "Our biggest ii( < | ||
JJ J challenge has been to create a water conservation program that gets results by changing people's habits, not their lifes'tyles," says George Martin, Director of | JJ J challenge has been to create a water conservation program that gets results by changing people's habits, not their lifes'tyles," says George Martin, Director of | ||
.Water Conservation. n"We try to make people aware of the shortage, explain their | .Water Conservation. n"We try to make people aware of the shortage, explain their | ||
~ | ~ | ||
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l) | l) | ||
How and where these species thrive can indicate the condition and trend of the THE CHECK P | How and where these species thrive can indicate the condition and trend of the THE CHECK P | ||
PLEASE overall'watershed. % The DWP, working with the California Department of Fish | PLEASE overall'watershed. % The DWP, working with the California Department of Fish and Game, has also developed a multitude of fish and wildlifeprograms on its lands. | ||
Under a cooperative agreement signed with Inyo County in 1985, some 18 enhancement/mitigation projects have been implemented in the Owens Valley. | Under a cooperative agreement signed with Inyo County in 1985, some 18 enhancement/mitigation projects have been implemented in the Owens Valley. | ||
'll These projects range in scope from development of agricultural greenbelts to wildlifeand waterfowl habitats and recreation, and are primarily aimed at beautify- | 'll These projects range in scope from development of agricultural greenbelts to wildlifeand waterfowl habitats and recreation, and are primarily aimed at beautify- | ||
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will last forever." | will last forever." | ||
QUAL ITYTHENAMEQFTGAhe fiist thing Leonard patton does when he begins his shift at the Los Angeles Aqueduct Filtration Plant control r | QUAL ITYTHENAMEQFTGAhe fiist thing Leonard patton does when he begins his shift at the Los Angeles Aqueduct Filtration Plant control r | ||
room is sit down at his computer and check all the critical functions at the state-of-the-art plant. 'll For the next eight'hours, he uses his computer system and telephone to monitor and direct nearly every phase of the operations designed to give the people of Los Angeles the best'possible water. if "I direct about 99 percent of the operations. from the control room, which means I'e got to pay every minute," says Patton. "It's a lot of responsibility, but I like.the fact 'ttention that we'e turning out safe, clean water." 'll The $ 146 million Filtration Plant project, capable of treating 600 million gallons of water a day; is the cornerstone of the DWP's solid commitment to water quality. li Water from the eastern Sierra' | room is sit down at his computer and check all the critical functions at the state-of-the-art plant. 'll For the next eight'hours, he uses his computer system and telephone to monitor and direct nearly every phase of the operations designed to give the people of Los Angeles the best'possible water. if "I direct about 99 percent of the operations. from the control room, which means I'e got to pay every minute," says Patton. "It's a lot of responsibility, but I like.the fact 'ttention that we'e turning out safe, clean water." 'll The $ 146 million Filtration Plant project, capable of treating 600 million gallons of water a day; is the cornerstone of the DWP's solid commitment to water quality. li Water from the eastern Sierra' the city's primary source travels as far as 338 miles along the Los Angeles Aqueduct before reaching the plant. Although the water is protected along the way to keep it free from contamination, the treatment process doesn't begin until the water enters the large filtration complex in Sylmhr. 'll With a flick of the wrist, | ||
the city's primary source travels as far as 338 miles along the Los Angeles Aqueduct before reaching the plant. Although the water is protected along the way to keep it free from contamination, the treatment process doesn't begin until the water enters the large filtration complex in Sylmhr. 'll With a flick of the wrist, | |||
RESOURCE MANAGEMENT IN THE 1990s Patton and his fellow control room operators can tune in.on the water's progress at any stage in the plant via computer and make necessary adjustments. ll They monitor the water through an elaborate treatment procedure that uses ozone gas as a primary disinfectant and then chlorine to provide lasting protection. Ozone is a | RESOURCE MANAGEMENT IN THE 1990s Patton and his fellow control room operators can tune in.on the water's progress at any stage in the plant via computer and make necessary adjustments. ll They monitor the water through an elaborate treatment procedure that uses ozone gas as a primary disinfectant and then chlorine to provide lasting protection. Ozone is a | ||
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These and other voluntary efforts led to dramatic conservation efforts during the last quarter of. the 22 r | These and other voluntary efforts led to dramatic conservation efforts during the last quarter of. the 22 r | ||
I fiscal year: a 12 percent reduction in April, 11 percent in May and 17 percent in June. The Department's goal is to instill a long-term conservation-ethic. ! | I fiscal year: a 12 percent reduction in April, 11 percent in May and 17 percent in June. The Department's goal is to instill a long-term conservation-ethic. ! | ||
Two court actions during the past year affected DWP water supplies from the Owens Valley and Mono'asin. | Two court actions during the past year affected DWP water supplies from the Owens Valley and Mono'asin. | ||
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Following years of study and negotiation, the City. of Los Angeles and Inyo County,in July 1989, agreed in principle on a long-term groundwater management plan for Owens Valley. The City and County are now jointly preparing an environm'ental impact report on the proposed plan.-This milestone agreement,.when finally approved, willresolve more than 18 years of controversy and litigation. | Following years of study and negotiation, the City. of Los Angeles and Inyo County,in July 1989, agreed in principle on a long-term groundwater management plan for Owens Valley. The City and County are now jointly preparing an environm'ental impact report on the proposed plan.-This milestone agreement,.when finally approved, willresolve more than 18 years of controversy and litigation. | ||
I In August 1989, the city agreed to begin Phase IIIof a demonstration project aimed at controlling dust'hat rises around Oxyens'ake. in high winds. The current $ 2 million.study includes construction of | I In August 1989, the city agreed to begin Phase IIIof a demonstration project aimed at controlling dust'hat rises around Oxyens'ake. in high winds. The current $ 2 million.study includes construction of | ||
. sprinklers to control the dus't. | . sprinklers to control the dus't. | ||
A severe storm in the Owens Valley on Aug. 8, 1989 caused flash flooding that caused about $ 1.3 million in damage to a two-mile section of the Los Angeles Aqueduct near Olancha. DWP crews repaired the damage and returned the Aqueduct to full service within 11 days four days. ahead of schedule. =, | A severe storm in the Owens Valley on Aug. 8, 1989 caused flash flooding that caused about $ 1.3 million in damage to a two-mile section of the Los Angeles Aqueduct near Olancha. DWP crews repaired the damage and returned the Aqueduct to full service within 11 days four days. ahead of schedule. =, | ||
.Water service in Los Angeles was not affected. | .Water service in Los Angeles was not affected. | ||
Water quality, as well as supply, remained a high-priority item during the year, The Los Angeles Aqueduct Filtration Plant. continued to discharge water with average turbidity more than five times better than current state standards.. | Water quality, as well as supply, remained a high-priority item during the year, The Los Angeles Aqueduct Filtration Plant. continued to discharge water with average turbidity more than five times better than current state standards.. | ||
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'A major improvement project was launched, at the North'ollywood Pumping Station to bring this facility up to seismic standards, increase groundwater utilization capability, improve water quality, I | 'A major improvement project was launched, at the North'ollywood Pumping Station to bring this facility up to seismic standards, increase groundwater utilization capability, improve water quality, I | ||
reduce maintenance and generate hydroelectric power. | reduce maintenance and generate hydroelectric power. | ||
To ppsition itself for the future, the System began developing a strategic plan, expected to be completed in mid-December. The plan willadd'ress the key'issues of water suppl'y, quality and customer service. The System'also set up special task forces to deal with such priority concerns as drought planning, conserva- | To ppsition itself for the future, the System began developing a strategic plan, expected to be completed in mid-December. The plan willadd'ress the key'issues of water suppl'y, quality and customer service. The System'also set up special task forces to deal with such priority concerns as drought planning, conserva-tion and reclamation. I 23 | ||
tion and reclamation. I 23 | |||
OPERATIONS OVERVIEW s | OPERATIONS OVERVIEW s | ||
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Wellness programs provided health information, as well as 1,800 blood pressure and cholesterol tests. | Wellness programs provided health information, as well as 1,800 blood pressure and cholesterol tests. | ||
'or employees. These tests avert potential health problems and contribute to employee. productivity. | 'or employees. These tests avert potential health problems and contribute to employee. productivity. | ||
/ | / | ||
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'WP's lost workdays during 1989. Serious. injuries declined by 36 percent from the previous year, while lost workdays due to injury dropped 26. percent. The D'epartment has achieved'a 64 percent reduction in serious injuries over the last d'ecade. | 'WP's lost workdays during 1989. Serious. injuries declined by 36 percent from the previous year, while lost workdays due to injury dropped 26. percent. The D'epartment has achieved'a 64 percent reduction in serious injuries over the last d'ecade. | ||
~ | ~ | ||
The continuing drought has increased the need for effective community outreach programs, and the Department responded with a number of initiatives'in this area. A $ 2 million water conservation advertising campaign'in major print and broadcast media was one of the efforts undertaken. | |||
DWP education programs, emphasizing conservation and water quality; reached 100,000 students and 3,000 teachers at all grade levels in some 400 DWP service area schoqls during 1989-1990. | DWP education programs, emphasizing conservation and water quality; reached 100,000 students and 3,000 teachers at all grade levels in some 400 DWP service area schoqls during 1989-1990. | ||
New educational programs were conducted starting in January 1990 to teach elementary school children about electric safety, electric generation, air quality, water quality and water conservation. The | New educational programs were conducted starting in January 1990 to teach elementary school children about electric safety, electric generation, air quality, water quality and water conservation. The | ||
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LOS ANGELES DEPARTS!ENT OF WATER AND POWER WATER SYSTEM STATEMENT OF INCOME 9 | LOS ANGELES DEPARTS!ENT OF WATER AND POWER WATER SYSTEM STATEMENT OF INCOME 9 | ||
(In Thousands) Year ended June 30 1990 1989 1988 Operating Revenues Residential S125,470 $ 110,069 S 94,525 Commercial and industrial 191>236 ~ | (In Thousands) Year ended June 30 1990 1989 1988 Operating Revenues Residential S125,470 $ 110,069 S 94,525 Commercial and industrial 191>236 ~ | ||
166,558 142,456 Other 31,450 23,621 ~ | 166,558 142,456 Other 31,450 23,621 ~ | ||
20,051 Total operating revenues 348,156 300,248 257,032 Operating Expenses l 42I,988 '31,072 Purchased water 71,814 Purchased energy 12,962 12,991 11,613 Other operating expenses 105,725 109,627 95,443 Maintenance 39,849 38,424 34,243 Depreciation. 35,270 32,814 30,584 Total openting expenses, 265,620 238,844 202,955 Operating Income 82,536 61,404 54,077 Other Income'and Expenses, Net 6,428 6,477 2,685 Income before debt exp'enses 88,964 67,881 56,762 Debt Expenses Interest on debt 28,578 . 27,556 23,749 Allowance for b'orrowed funds used during construction (2,196) (2,006) (1,380) | 20,051 Total operating revenues 348,156 300,248 257,032 Operating Expenses l 42I,988 '31,072 Purchased water 71,814 Purchased energy 12,962 12,991 11,613 Other operating expenses 105,725 109,627 95,443 Maintenance 39,849 38,424 34,243 Depreciation. 35,270 32,814 30,584 Total openting expenses, 265,620 238,844 202,955 Operating Income 82,536 61,404 54,077 Other Income'and Expenses, Net 6,428 6,477 2,685 Income before debt exp'enses 88,964 67,881 56,762 Debt Expenses Interest on debt 28,578 . 27,556 23,749 Allowance for b'orrowed funds used during construction (2,196) (2,006) (1,380) | ||
Total debt expenses 26,382 25,550 22,369 | Total debt expenses 26,382 25,550 22,369 Net Income 5 62,582. 5 42,331 34,393 STATEMENT OF RETAINED INCOME REINVESTED IN THE BUSINESS (In Thousands) Year ended June 30 1990 1989 1988 Balance at beginning of year $ 493>979 $ 464,500 $ 442,526 Net income for the year 62,582 42,331 34,393 556,561 506>831 476,919 Less Payments to the reserve fund of the City, . 15,012 12,852 12,419 Balance at end of year $ 541,549 $ 493,979 5464,500 Tha areompaniring noir>are an in>>gral parr ofrhrsa fina nliul<<airmen>>. | ||
Net Income 5 62,582. 5 42,331 34,393 STATEMENT OF RETAINED INCOME REINVESTED IN THE BUSINESS (In Thousands) Year ended June 30 1990 1989 1988 Balance at beginning of year $ 493>979 $ 464,500 $ 442,526 Net income for the year 62,582 42,331 34,393 556,561 506>831 476,919 Less Payments to the reserve fund of the City, . 15,012 12,852 12,419 Balance at end of year $ 541,549 $ 493,979 5464,500 Tha areompaniring noir>are an in>>gral parr ofrhrsa fina nliul<<airmen>>. | |||
33 | 33 | ||
LOS ANGELES DEPARTh'IENT OF WATER AND POWER WATER SYSTEM. BALANCE SHEET (In Thousunds) June 30 1990 1989 Assets UtilityPlant, at original. cost Source of water supply S 244,792 S 243,355 Pumping 56,229 53,499 Purification 146,754 139,947 | LOS ANGELES DEPARTh'IENT OF WATER AND POWER WATER SYSTEM. BALANCE SHEET (In Thousunds) June 30 1990 1989 Assets UtilityPlant, at original. cost Source of water supply S 244,792 S 243,355 Pumping 56,229 53,499 Purification 146,754 139,947 | ||
~ Distribution 1,208,083 1,105,323 General 126,030 122,252 11781,888 1,664,376 Less Accumulated depreciation 5774678 542,259 1,204,210'7,879, 1 122 117 Construction work in progress 79,947 Net utilityplant 1,282,089 1,202,064 Current Assets Cash and investments 71,878 89,091 Customer and other accounts rcccivable 58,384 54,166 Accrued unbilled revenue 21,605 29,056 Materials and supplies, at average cost 20,259 16,112 Prepayrqents and other current assets 9,574 11,539 Total current assets 181,700 199,964 Total utility plant and assets 81,483,789 $ 1,402,028 Capitalization and Liabilities Capitalization Equity | ~ Distribution 1,208,083 1,105,323 General 126,030 122,252 11781,888 1,664,376 Less Accumulated depreciation 5774678 542,259 1,204,210'7,879, 1 122 117 Construction work in progress 79,947 Net utilityplant 1,282,089 1,202,064 Current Assets Cash and investments 71,878 89,091 Customer and other accounts rcccivable 58,384 54,166 Accrued unbilled revenue 21,605 29,056 Materials and supplies, at average cost 20,259 16,112 Prepayrqents and other current assets 9,574 11,539 Total current assets 181,700 199,964 Total utility plant and assets 81,483,789 $ 1,402,028 Capitalization and Liabilities Capitalization Equity | ||
'etaIned income reinvested in the business S 541,549 S 493',979 Contributions in aid of construction 410,378 376,599 951,927 870,578 Long-term debt 367,477 379,724',319,404 Total capitalization 1,250,302 Current Liabilities Long-term debt due within one year 12,460 20,180 | 'etaIned income reinvested in the business S 541,549 S 493',979 Contributions in aid of construction 410,378 376,599 951,927 870,578 Long-term debt 367,477 379,724',319,404 Total capitalization 1,250,302 Current Liabilities Long-term debt due within one year 12,460 20,180 Accrued interest 8,270 9,432 Accounts payable and accrued expenses 83,501 83,472 Customer deposits 40,154 38,642 Total current liabilities 144;385 . 151,726 Commitments and Contingencies Total capitalization and liabiliti'es S1,463,789 $ 1,402,028 The accompan>ing notes are an integral part of these'inancial statements. | ||
34 | 34 | ||
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Cash'nd Investments: | Cash'nd Investments: | ||
Net increase (decrease), (17,213), 4,762 47,193 Beginning of year 89,091 84,329 37,136 End of year S 71,878 S 89,091 3 84,329 Supplemental disclosure of cash flow information: | Net increase (decrease), (17,213), 4,762 47,193 Beginning of year 89,091 84,329 37,136 End of year S 71,878 S 89,091 3 84,329 Supplemental disclosure of cash flow information: | ||
Cash paid during the year for interest S 36,799 S 32,223 28,820, 4 | Cash paid during the year for interest S 36,799 S 32,223 28,820, 4 | ||
The accotnpan>8ng notes are an integral part ofthese fwancial statements. | The accotnpan>8ng notes are an integral part ofthese fwancial statements. | ||
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Allowance for funds used during construction (AFUDC) AFUDC represents the cost of borrowed funds used for the construction of utilityplant. Capitalized AFUDC is shown as part of the cost of utilityplant and as a reduction of debt I | Allowance for funds used during construction (AFUDC) AFUDC represents the cost of borrowed funds used for the construction of utilityplant. Capitalized AFUDC is shown as part of the cost of utilityplant and as a reduction of debt I | ||
expenses. The average AFUDC rates were 7.8%, 8.1% and 8.4% for.fiscal years 1990, 1989 and 1988, respectively. | expenses. The average AFUDC rates were 7.8%, 8.1% and 8.4% for.fiscal years 1990, 1989 and 1988, respectively. | ||
36 | 36 | ||
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1989 '988 Service cost . $ 12 S10 . '$11 Interest cost 40 41 38 Actual return on plan assets (41) (61) (10) costs'990 Net amortization and deferral Net retirement plan cost Disability and death ben'efit plan costs and administrative expenses 14 25 5 | 1989 '988 Service cost . $ 12 S10 . '$11 Interest cost 40 41 38 Actual return on plan assets (41) (61) (10) costs'990 Net amortization and deferral Net retirement plan cost Disability and death ben'efit plan costs and administrative expenses 14 25 5 | ||
39 29 5 | 39 29 5 | ||
(11) 28 | (11) 28 Total benefit plan $ 30 $ 34 $ 32 37 | ||
Total benefit plan $ 30 $ 34 $ 32 37 | |||
'os ANGELES DEPARTMENT OF WATER AND POWER WATER SYSTEM NOTES TO FINANCIAL'TATEMENTS The following schedule reconciles the funded status of the plan with amounts reported in the financial statements (amounts in millions): | 'os ANGELES DEPARTMENT OF WATER AND POWER WATER SYSTEM NOTES TO FINANCIAL'TATEMENTS The following schedule reconciles the funded status of the plan with amounts reported in the financial statements (amounts in millions): | ||
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REPORT OF INDEPENDENT ACCOUNTANTS August 27, 1990 To the Board of Water and Power Commissioners Department of Water and,Power City of Los Angeles In our opinion, the accompanying balance sheet and the related statements of I | REPORT OF INDEPENDENT ACCOUNTANTS August 27, 1990 To the Board of Water and Power Commissioners Department of Water and,Power City of Los Angeles In our opinion, the accompanying balance sheet and the related statements of I | ||
income, rc'taincd income reinvested in the business and cash flows present fairly, in all mate'rial respects, the financial position of thc Water System of the Depart-ment of Water and Power of the City of Los Angeles at June 30, 1990'and 1989, and the results of its operations and its cash flows for each of thc three years in thc period cndcd June 30,. 1990, in conforfnity ivitIigenerally accepted account-ing principles. These financial statements are the responsibility of the Depart-ment's management; our responsibility is to express an opinion on thes'e financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that wc plan and perform the audit to obtain reasonable assumnce about whether the | income, rc'taincd income reinvested in the business and cash flows present fairly, in all mate'rial respects, the financial position of thc Water System of the Depart-ment of Water and Power of the City of Los Angeles at June 30, 1990'and 1989, and the results of its operations and its cash flows for each of thc three years in thc period cndcd June 30,. 1990, in conforfnity ivitIigenerally accepted account-ing principles. These financial statements are the responsibility of the Depart-ment's management; our responsibility is to express an opinion on thes'e financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that wc plan and perform the audit to obtain reasonable assumnce about whether the financial statcmcnts are free of material misstatement. An audit includes examin-ing, on a test basis, evidence supporting the amounts and disclosures in the finan-cial statements, assessing the accounting principles tised and significant estimates I | ||
made by management, and evaluating the overall financial statement presenta-tion. We believe that our audits provide a reasonable basis for.the opinion expressed above. | made by management, and evaluating the overall financial statement presenta-tion. We believe that our audits provide a reasonable basis for.the opinion expressed above. | ||
39 | 39 | ||
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') | ') | ||
Current Assets Cash and investments 125)506 143,183-Customer and other accounts receivable, less $ 3,400 and $ 2,400 allowance for losse's 't 187,242 '69,084 Receivable from Intermountain Power Agency 64,556 . 49,573 Accrued unbilled revenue , 109",911, 94,576 Materials and supplies, at average cost 105>063 85,061 Fuel inventory 59,338 60,721 Prcpayments and other current assets 15,521 27,663 Total current assets 667,137 629,861 Total utilityplant and assets $ 4,411,931 $ 4,153,798 Capitalization and Liabilities Capitalization Equity 'I Retained income reinvested in the business $ 1,971,276 $ 1,900,628 Contributions in aid of construction 135,213 123,041 2,106,489 2,023)669 Long-term debt 1,797,950 1,602,469 Total'capitalization 3,904,439 3,626,138 Current Liabilities Long-term debt due within one year 53,180 51830 . | Current Assets Cash and investments 125)506 143,183-Customer and other accounts receivable, less $ 3,400 and $ 2,400 allowance for losse's 't 187,242 '69,084 Receivable from Intermountain Power Agency 64,556 . 49,573 Accrued unbilled revenue , 109",911, 94,576 Materials and supplies, at average cost 105>063 85,061 Fuel inventory 59,338 60,721 Prcpayments and other current assets 15,521 27,663 Total current assets 667,137 629,861 Total utilityplant and assets $ 4,411,931 $ 4,153,798 Capitalization and Liabilities Capitalization Equity 'I Retained income reinvested in the business $ 1,971,276 $ 1,900,628 Contributions in aid of construction 135,213 123,041 2,106,489 2,023)669 Long-term debt 1,797,950 1,602,469 Total'capitalization 3,904,439 3,626,138 Current Liabilities Long-term debt due within one year 53,180 51830 . | ||
Revenue certificates 90,000 90,000 Accrued interest 33,069 36,526 Accounts payablc and accrued expenses 231,530 238,036 Over-recovered energy costs 19,372 47,687 Extension and other deposit's 15,785 13,908 | Revenue certificates 90,000 90,000 Accrued interest 33,069 36,526 Accounts payablc and accrued expenses 231,530 238,036 Over-recovered energy costs 19,372 47,687 Extension and other deposit's 15,785 13,908 Deferred credit Intermountain Power Agency 64,556 49,573 Total current liabilities 507,492 - 527,660 | ||
Deferred credit Intermountain Power Agency 64,556 49,573 Total current liabilities 507,492 - 527,660 | |||
) | ) | ||
Commitments and Contingencies Total capitalization and liabilities $ 4,411,931 $ 4,153,798 Tha attompan>ing notrs ara anintrgral part %hrsa financial statemrnts. | Commitments and Contingencies Total capitalization and liabilities $ 4,411,931 $ 4,153,798 Tha attompan>ing notrs ara anintrgral part %hrsa financial statemrnts. | ||
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LOS ANCELES DEPARThIENT OF WATER AND POWER POWER SYSTEM STATEMENT OF 'CASH FLOWS (In Thousands) Year ended June 30 1990 I989 1988 Cash Flows From Operating Activities: | LOS ANCELES DEPARThIENT OF WATER AND POWER POWER SYSTEM STATEMENT OF 'CASH FLOWS (In Thousands) Year ended June 30 1990 I989 1988 Cash Flows From Operating Activities: | ||
Net income S 156,466 193,429 S 175,'561 Adjustments to reconcile net income to net cash provided by operating activities: | Net income S 156,466 193,429 S 175,'561 Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation 139,031 136,954 124,004 | Depreciation 139,031 136,954 124,004 | ||
',527',516 | ',527',516 | ||
~ | ~ | ||
Amortization of nuclear fuel 3,258 | Amortization of nuclear fuel 3,258 Allowance for borrowed fund used during construction (2,757) (7,268) (5,674) | ||
Allowance for borrowed fund used during construction (2,757) (7,268) (5,674) | |||
Changes in current assets and liabilities: | Changes in current assets and liabilities: | ||
Cust'orner and other accounts receivable (18,158) '25,774) (3,023) | Cust'orner and other accounts receivable (18,158) '25,774) (3,023) | ||
Receivable from Intermountain.Power Agency, (14,983) (49,573) | Receivable from Intermountain.Power Agency, (14,983) (49,573) | ||
Accrued unbilled revenue (15,335) (5,794) '(4,247) | Accrued unbilled revenue (15,335) (5,794) '(4,247) | ||
Line 526: | Line 488: | ||
Over-recovered energy costs (28,315) (9,865) (15,644) | Over-recovered energy costs (28,315) (9,865) (15,644) | ||
Extension and other deposits 1,877 (2,019) (3,750) | Extension and other deposits 1,877 (2,019) (3,750) | ||
Deferred credit Intermountain Power Agency 14,983 49,573 Net cash provided by operating activities 219,627 313,841 2479880 Cash Flows From Financing Activities: | |||
Deferred credit Intermountain Power Agency 14,983 | |||
49,573 Net cash provided by operating activities 219,627 313,841 2479880 Cash Flows From Financing Activities: | |||
Sale of revenue bonds, 247,929 99,527 198,108 Sale of advance refunding bonds 85,216 Contributions in aid of construction 12,172. 18,216 13,473 Reduction of long-term debt (51,198) (52>843} (67,223) 4 Amount deposited in escrow accounts and offset against advance refunding bonds (85,216) | Sale of revenue bonds, 247,929 99,527 198,108 Sale of advance refunding bonds 85,216 Contributions in aid of construction 12,172. 18,216 13,473 Reduction of long-term debt (51,198) (52>843} (67,223) 4 Amount deposited in escrow accounts and offset against advance refunding bonds (85,216) | ||
Payments to the reserve fund of the City '85,818) | Payments to the reserve fund of the City '85,818) | ||
Line 560: | Line 519: | ||
Debt. expenses Debt premium, discount and issue expenses are deferred and amortized to expenses over the lives of the related issues. | Debt. expenses Debt premium, discount and issue expenses are deferred and amortized to expenses over the lives of the related issues. | ||
Allowance for funds used during construction (AFUDC) AFUDC represents the cost of borrowed funds used for the construction of utilityplant. Capitalized AFUDC is shown as part'of the cost of utilityplant and as a reduction of debt expenses. The average AFUDC rates were 7.7%, 7.6% and 7.9% for fiscal years 1990, 1989 and 1988, respectively. | Allowance for funds used during construction (AFUDC) AFUDC represents the cost of borrowed funds used for the construction of utilityplant. Capitalized AFUDC is shown as part'of the cost of utilityplant and as a reduction of debt expenses. The average AFUDC rates were 7.7%, 7.6% and 7.9% for fiscal years 1990, 1989 and 1988, respectively. | ||
Receivable Intermountain Power Agency | Receivable Intermountain Power Agency Note B and Deferred Credit As of July 1, 1988, an amendment to an Intermountain Power Agency (IPA) bond resolution provided for the use of sur-plus construction funds from the Intermountain Power Project. As a member participant of this project, the Depart-, | ||
Note B and Deferred Credit As of July 1, 1988, an amendment to an Intermountain Power Agency (IPA) bond resolution provided for the use of sur-plus construction funds from the Intermountain Power Project. As a member participant of this project, the Depart-, | |||
ment's share of such surplus funds totaled $ 125 million through June 30, 1990, of which $ 60 million was used as an offset against purchased power from IPA in fiscal year 1989. AtJune 30, 1990, the Department had a'remaining receivable from IPA of $ 65 million. | ment's share of such surplus funds totaled $ 125 million through June 30, 1990, of which $ 60 million was used as an offset against purchased power from IPA in fiscal year 1989. AtJune 30, 1990, the Department had a'remaining receivable from IPA of $ 65 million. | ||
44 | 44 | ||
Line 608: | Line 565: | ||
t'wo agreements with the Southern California Public Power Authority (SCPPA), a California Joint Powers Agency, for 67% of'SCPPA's 5.9% entitlement to the energy generated at the Palo Verde Nuclear Gencmting Station and for 59;5% | t'wo agreements with the Southern California Public Power Authority (SCPPA), a California Joint Powers Agency, for 67% of'SCPPA's 5.9% entitlement to the energy generated at the Palo Verde Nuclear Gencmting Station and for 59;5% | ||
in the capacity of the Southern Transmission System, which. transmits energy from IPP in Utah to Southern California. | in the capacity of the Southern Transmission System, which. transmits energy from IPP in Utah to Southern California. | ||
Significant data related to ihese agreements, which are scheduled to expire from 2022 to 2027, at'June 30, 1990 are | Significant data related to ihese agreements, which are scheduled to expire from 2022 to 2027, at'June 30, 1990 are as follows: | ||
as follows: | |||
Department Total Bonds ~ Sham of. | Department Total Bonds ~ Sham of. | ||
Outstanding Capacity (millions) (megawatts) | Outstanding Capacity (millions) (megawatts) | ||
Line 623: | Line 578: | ||
Nuclear Insurance As a 'participant in the Palo Verde Nuclear Generating Station, the Department could be subject'to . | Nuclear Insurance As a 'participant in the Palo Verde Nuclear Generating Station, the Department could be subject'to . | ||
assessment of retrospective insurance premium adjustments in the event of a nuclear incident at Palo Verde or at any other licensed reactor in the United States. | assessment of retrospective insurance premium adjustments in the event of a nuclear incident at Palo Verde or at any other licensed reactor in the United States. | ||
Litigation 'A number of claims and suits are pending against the Depaitment for alleged damages to persons and | Litigation 'A number of claims and suits are pending against the Depaitment for alleged damages to persons and | ||
~ 'roperty and for other alleged liabilities arising out of its operations. In the opinion of management, any ultimate liabilitywhich may arise from these actions will not materially affect the Popover System'sfinancial position as of June 30, 1990. | ~ 'roperty and for other alleged liabilities arising out of its operations. In the opinion of management, any ultimate liabilitywhich may arise from these actions will not materially affect the Popover System'sfinancial position as of June 30, 1990. | ||
Line 649: | Line 603: | ||
Los ANGELES DEPARThIENT OF WATER AND POWER WATER/POWER NETWORK | Los ANGELES DEPARThIENT OF WATER AND POWER WATER/POWER NETWORK | ||
~ h l lp Celdo DC.AC | ~ h l lp Celdo DC.AC Convener Station | ||
Convener Station | |||
/// | /// | ||
OREGON | OREGON | ||
Line 690: | Line 642: | ||
Net income $ 156.5 S '193.4 $ 175.6 $ 186.8 | Net income $ 156.5 S '193.4 $ 175.6 $ 186.8 | ||
- S 193.6 r ~ | - S 193.6 r ~ | ||
I Balance Sheet Net utilityplant $ 3,744.8. $ 3,523.9'36.2 $ 3,324.9 S3,133.5 $ 2,943.9 Capital expenditures 360.4 317.3 303.4 392.6 Capitalization Equity 2,106.5 2,023.7 1,890.5 1,771.7 1,646.1 Long-term debt 1,797.9 1,602.4 1,554.2 1,408.9 1,476.1 Total capitalization 3,904.4 3,626.1 3,444.7 . 3,180;6 3,122.2 | I Balance Sheet Net utilityplant $ 3,744.8. $ 3,523.9'36.2 $ 3,324.9 S3,133.5 $ 2,943.9 Capital expenditures 360.4 317.3 303.4 392.6 Capitalization Equity 2,106.5 2,023.7 1,890.5 1,771.7 1,646.1 Long-term debt 1,797.9 1,602.4 1,554.2 1,408.9 1,476.1 Total capitalization 3,904.4 3,626.1 3,444.7 . 3,180;6 3,122.2 Debt as % of net utility 48.0% 45 50/ 46.7% 44.5% 49.3% | ||
on debt plant'"'nterest 118.1 110.3 102.4 '6.9 Payments to City of L.A. 85.8 78.5 64.4 97.5'0.2,67.9 Operations Killowatthours sold (billior)s) 21.8 21.9 21.1 20.5 20.3 Customers average number (thousands) 1q344.6 1>325.3 1,304.6 1,275.9 1,262.0 Average revenbe per kwh sold (in cents) '.2 Residential 8.9 7.7 7.1 6.9 Commercial and industrial 8.3 i7 3 6.8 6.6 7.7'.8 Energy production (billion kwh) | on debt plant'"'nterest 118.1 110.3 102.4 '6.9 Payments to City of L.A. 85.8 78.5 64.4 97.5'0.2,67.9 Operations Killowatthours sold (billior)s) 21.8 21.9 21.1 20.5 20.3 Customers average number (thousands) 1q344.6 1>325.3 1,304.6 1,275.9 1,262.0 Average revenbe per kwh sold (in cents) '.2 Residential 8.9 7.7 7.1 6.9 Commercial and industrial 8.3 i7 3 6.8 6.6 7.7'.8 Energy production (billion kwh) | ||
Hydro 1.4 1.8 2.9 3.8 . ~ | Hydro 1.4 1.8 2.9 3.8 . ~ | ||
Line 699: | Line 650: | ||
Hydro 1.4 1.4 1.9 1.9 .1.9 Oil and gas owned Jointly owned and firm purchases 3.1 4;5 2.9, 3.1 4.5 2.8 | Hydro 1.4 1.4 1.9 1.9 .1.9 Oil and gas owned Jointly owned and firm purchases 3.1 4;5 2.9, 3.1 4.5 2.8 | ||
~ | ~ | ||
3.1 5.0 '.2 | 3.1 5.0 '.2 | ||
. 3.3 2.4 | . 3.3 2.4 | ||
Line 707: | Line 657: | ||
(B) Rhstathd duc to rcclassification. " | (B) Rhstathd duc to rcclassification. " | ||
I | I | ||
-sz}} | -sz}} |
Latest revision as of 04:51, 4 February 2020
ML17306A320 | |
Person / Time | |
---|---|
Site: | Palo Verde ![]() |
Issue date: | 12/31/1990 |
From: | Caruso R, Gage M, Green D LOS ANGELES DEPT. OF WATER & POWER |
To: | |
Shared Package | |
ML17306A314 | List: |
References | |
NUDOCS 9112170364 | |
Download: ML17306A320 (56) | |
Text
LOS ANGELES DEPARTMENT OF WATER AND POWER 1989-1990 ANNUAL REPORT
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RESOURCE MANAGEMENT IN THE 1990s 9'112170364 911209
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INTRODUCTION TO PROVIDE ADEQUATE AND RELIABLE SUPPLIES OF WATER AND'ELECTRICITY FOR THE CITY OF LOS ANGELES THROUGH THE 1990s AND BEYOND, THE DEPARTMENT OF WATER AND POWER MUST OPERATE EFFECTIVELY IN A CLIMATE WHERE SENSITIVITY TO THE ENVIRONMENT AND THE NEEDS OF ITS, CUSTOM E'RS ARE PARAMOUNT.
~z THESE PRIORITIES REQUIRE EACH OF OUR EMPLOYEES TO WORK WITH RENEWED DEDICATION AND CONCERN FOR THE WOQLD AROUND THEM.
4
I WATER AND-POWER DOLLAR WATER REVENUE DOLLAR IN CENTS ~
WATER EXPENDITURE DOLLAR IN CENTS I 3 4 5 8 25 h
14 55 36 14 19 16 I Fire hydrant rentalI 4 Payments to the City '
- 3 Other Retirement Plan costs related to operations 5 Gtnernmental 14 Capital improvements 36 ResTdential 14 Debt service costs 55 Commercial and industrial 16 Other operating expenses 19 Operating salaries arid wages 25 Purchased water and energy POWER REVENUE DOLLAR IN CENTS POWER EXPENDITURE DOLLAR IN CENTS 2 3 4 13 7 35 54 12 28 15 '13 t
2 Street lighting 4 Retirement Plan costs related to operations "3 Other 5 PaymentstotheCity 13 Industrial 7 Capiml impnnements 28 Residential 9 Debtservicecosts 54 Commercial 12 Opemting salaries and wages 13 Fuel 15 Oilier operating expenses 35 Purchased energy
COMPARATIVE HIGHLIGHTS
% Increase % Increase Year ended June,30 1990 1989 (Decrease) 1990 1989 (Decrease)
Service Gallons in billions Kilowatt,hours in billions t
Sales 208.8 208.1 0.3% 21.8 21.9 (0.5%)
Customers average number (thousands) 643.4 640.6 0.4% 1,344.6 1;325.3 1.5%
Financial In millions In millions 5 354.6 S 306.7 15.6% $ 1,866.7 $ 1,734.6,7.6%
Revenue'"'perating costs") 230.4 206.0 11.8% 1,455.9 . 1,301.2 11.9%
Net income 62.6 42.3 48.0% 156.5 153.4 (19.1%)
Payments to City of Los Angeles 15:0 12.9'6.3% 85.8 78.5 9.3%
~ /
Capital expenditures 113.1 118.1 (4.2%) 360.4 '36.2 s 7.2%
r Net utilityplant 1,282.1 1,202;0 6.7% 3,744.8 3,523.9 6.3%
Capitalization equity and long-term debt 1,319.4 1,250.3 . 5.5% 3,904.4 3,626.1. 7.7%
(A) includes otherineorne net Excluding depreciation
.I expense (B)
PRESIDENT'S'ESSAGE a
As it enters its 90th year of opeiation, the Los Angeles Department of Water and Power is.
proud to be part of the ongoing success story that is the City of Los Angeles. Access to adequate supplies of water and electricity were certainly key elements in this achievement.
~ I Today the Department is entering a new era, characterized by new concerns over quality
/
of life and the kind of environment we will leave our children and grandchildren. This year's DWP annual report takes a close look at the responsibilities these new concerns place on the men'and women who manage this enterprise.
Three of us Commissioners Nichols, Green and I are new to th'e'Board of Water and Power Commissioners this year. We are honored to serve with the two incumbent mem-bers, Commissioners Caruso and Echevarria, who have rendered distinguished service to this Department and the city for many years. I We are also pleased to be part of'the larger DWP "family," the 11,000 employees who have made this the finest publicly owned utility in the nation. Their dedication and diligence are in the'best tradition of the Department.
Finally, our thanks.to the Mayor and Los Angeles City Council, as well as other city officials and their staffs, for their continuing support and especially through, these last four difficultyears of drought.
MICHAELGAGE President
~ I9 9 0 B 0 A R D 0 F WAT E R AN D P 0WE R C 0 M M I'S S I 0 N E R S hIICHAEL GAGE President RICK J. CARUSO DOROTHY GREEN Vice President . Commissioner ANGEL M. ECHEVARRIA hiARYt D. NICHOLS Commissioner Commissioner
FROM THE GENERAL MANAGER The year just past has been an eventful one for the Los Angeles Department of Water and Power. Thanks to a gratifying public response to conservation appeals, our Water Sys-tern was able to meet demand in this fourth year of drought through voluntary water conservation. The Power System, impacted by lower hydroelectric production and periodic curtailments of natural gas, still managed to supply all the city's power needs with flying colors.
~The Department made significant strides last year in affirmative action, employee safety and customer service. Our financial position remains strong, with DWP revenue bonds rated among the best in the public utility sector. Meanwhile, Los Angeles water and power customers continue to enjoy rates substantially below those prevailing in sur-rounding communities.
As a result of these achievements, we enter. 1990-91 confident that we can continue to provide quality service to the nearly 3.5 million people of Los Angeles as we move toward the 21st century. We are indebted to the 11,000 employees of this Department, whose hard work and dedication have made these achievements possible.
Despite these positives, the road ahead signals a number of changes in the way we approach our business. Although the Department prides. itself on its record as a respon-sible operator, new public concerns for the environment require that we increase our
~ diligence in this area.
This means DWP employees and managers must be more sensitive to the world outside II our operating sphere, to issues like global warming, recycling, resource conservation and the health effects of electric and magnetic fields.
We must also look more closely at the parameters that have guided our industry's planners-for the last two decades. We need to be more receptive to ideas that fall outside
those boundaries, including greater reliance on alternative energy sources like solar and geothermal and expanding the concept of purchasing conservation.
In the area of water resources, we must give even more emphasis to conservation, and take a closer'look at opportunities for reclaiming wastewater. Above all, we must recognize that these resources are finite.
As rapidly as the resource priorities are changing, the human side of our business is changing even more rapidly. The transformation in the work force of Southern Califor-nia more ethnically diverse, multilingual, younger will require radical changes in the way we reLruit, train'and develop future employees.
We welcome the fresh ideas and spirit that the new members bring to the Board of Water-I and Power Commissioners, and we look forward to working with them to meet the challenges that lie ahead.
In June, 1990, Norman E. Nichols announced his retirement as General Manager and Chief Engineer After 33 years of dedicated service. Throughout his long and distin-guished career, he demonstrated a keen understanding of the utility industry and was a
. major force in the development of electric transmission and generation throughout the West. His insight and strategic vision positioned the Department well for the future.
~p '(tf DA N I E L W. WAT E RS General Manager and Chief Engineer
THE DEPARTMENT IN BRIEF The Los Angeles Department of Water and Power supplies water and electricity'to the approximately 3.5 million residents of the nation's second largest city. As the largest municipally owned utilityin the nation, DWP has more than 11,000 employees sei ving a, 465-square-mile area ranging from the San Gabriel Mountains to the Pacific Ocean. It I
began municipal distribution of water in 1902 and electricitp in 1916.
's a proprietary agency of the Los Angeles City government, the DWP receives no tax support. Its operations are financed entirely by. the, sale of water and electricity. Revenue bonds are its main source of external financing.
The DWP is administered by the Board of Water and Power Commissioners, whose five
.members are appointed by the Mayor and confirmed by the City Council for terms of 1
five years. The, Board establishes water and electric rates, subject to approval by the City Council.
DEPARTMENT OF WATER AND POPOVER DANIELW. WATERS General Manager and Chief Engineer ELDON A. COTTON Assistant General Manager Power JAhIES F. WICKSER Assistant General Manager Water NORMAN L. BUEHRING Assistant General Manager External and Organizational Services NORMAN J. POWERS Chief Financial Officer
,,8
RESOURCE MANAGEMENT IN THE 1990s PRESERVING A DELICATE BALANCE'
~
MANAGING THE RESOURCES THAT HAVE MADE LOS ANGELES ONE OF THE MOST PROSPEROUS AND ATTR'ACTIVE CITIES IN THE WORLD IS A CHALLENGE NEVER IMAGINED 1
BY THE PIONEERS WHO SETTLED HERE 200 YEARS AGO. AS STEWARDS O'F THE MOST VITAL
=OF THESE RESOURCES, THE DEPARTMENT OF WATER AND POWER TODAY FINDS ITSELF AT A t
CRITICAL CROSSROADS. ll AS THE CITY HAS MATURED INTO A MAJOR CENTER OF COMMERCE AND CULTURE ON THE PACIFIC RIM, ITS GROWING NEED FOR WATER AND ELECTRIC ENERGY HjL4 PLACED. HEAVY DEMANDS ON THE RESOURCE BASE )END ECOSYSTEM OF THE SURROUNDING REGION. 5 SOUTHERN CALIFORNIA'S WATER REQUIREMENTS SPAWNED MASSIVE AQUEDUCT SYSTEMS FROM THE SIERRA NEVADA AND THE SACRAM'ENTO DELTA. SUPPLEMENTED BY SUPPLIES FROM THE COLE) RADO RIVER AND LOCAL UNDERGROUND WELL'S", THIS WATER BECAME OUR LIFE STREAM. 5 MEANWHILE,
, THE CITY'S DEMAND FOR ELECTRICI fY HAS REQUIRED US TO IMPORT POWER FROM THE
'PACIFIC NORTHWEST, UTAH, NEVADA AND ARIZONA. IN 1989, MORE THAN 5.5 MILLION I
r TONS OF ARIZONA AND UTAA COAL WERE BURNED TO PROVIDE ELECTRICITY FOR THE PEOPLE OF LOS ANGELES. 9 THE DWP HAS REDUCED IN-BA'SIN AIR EMISSIONS BY 90'ERCENT OVER THE LASX'0 YEARS, AND WILL CONTINUE TO IMPROVE AIR QUALITY IN THE FUTURE. It BUT, MEETING THE NEEDS OF ITS-CUSTOMERS AND PROTECTING THE NATURAL ENVIRONMENT HAS BECOME A GROWING CHALLENGE FOR THE MEN AND'OMEN WHO MANAGETHE NATION'S LARGEST PUBLICLY OWNED UTILITY. IT'S A
'BALANCING ACT WITH NOTHING LESS THAN OUR CITY',WELL BEING AT STAKE. ll IN THE FOLLOWING PAGES, WE EXAMINE SEVERAL WAYS THE DWP, IN 'ITS 90TH YEAR OF OPERATION, MANAGES THE PRECIOUS HUMAN, ENVIRONMENTALAND FINANCIAL
/
RESOURCES THAT MAKE THIS ONE OF THE MOST VIBRANT CITIES IN THE WORLD.
RESOURCE'ANAGEMENT IN THE 1990s TURNING THE CORNER ON ELECTRIC VEHICLES i t e near y 1 50 years since it was coined, the term "smog" has come to symbolize the darker side of life in Los Angeles. And, despite decades of rhetor'ic and good intentions, smog e continues to blight the environment of this sunswept region.'"9 A corner in the war against air pollution may have been turned recently, however, when the South I Coast Air Quality Management District (SCAQMD) issued a multiphase plan that included proposals to curb our reliance on gasoline-powered automobiles. 'il In-eluded in the plan was a'call for increased use of electric vehicles in the Los Angeles
,, I Basin. The SCAQMD's target is to repla'ce 70 percent of the gasoline vehicles in Southern California with electric (or other ultra-low-emission) vehicles. by the year DECAF OR REGULAR? 2010 an ambitious schedule, supporters admit, but an achievable one. 'll For-tunately, the Department of Water and Power spurred by the Electric Vehicle Initiative fathered by Los Angeles City Councilman Marvin Braude 'has already 1
launched a major development program,'in conjunction with Southern California
! o Edison, that'could hasten the arrival of electricvehicles in significant numbers by'he year 2000. 'll Over the next three years, the DWP will provide-design and If g development funding. of up to $ 12 million to participants in the program. The Replacing an old refrig- resulting product will be production-ready vehicles with top speeds of 70 mph and erator with a new high-an effective range of up to 150 miles. When they go into full-scale production in mid-efficiency model saves electricity in a 'nough 1992; each vehicle will cost between $ 20,000 and $ 30,000. ii The-plan is to year to brew mote have 10,000 electric automobiles, vans and trucks traveling the streets of Los .
than 1,500 pots of coffee Angeles by 1995;.eliminating an estimat'ed 1,350 tons of pollutants each year.
, andtoast3,000slices of bread. Powering the vehicles will add only minimally to the city's electrical demand, since .
most will be recharged during off-peak hours. 'I1 The best news for smog-sensitive commuters is that electric vehicles are 97. per'cent less polluting than con-
'ventional vehicles, even considering emissions from electric generatin'g plants. % Conventional wisdom has long held that Angelenos will be hard to wean from their 'dependence on gasoline. But the DWP. and other suppor'ters of the Electric Vehicle Initiative are betting that process willbe easier than many "experts" think.
ith more than 11 000 employees the DWP has one of the largest and most diverse work forces in Los Angeles. To make sure it is also one of the best in the industry, the Department aggressively pursues ways to help employees reach their full potent'ial.
Through employee development programs like "Investment in Excellence," the Department has involved several thousand people from throughout the organiza-tion in this process,.with excellent results. 'll Part of the ongoing effort to io
ELECTRIC VAN POOL
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4I ELECTRIC VEHICLES WILL FORM THE CORE OF A NEW FLEET OF ALTERNATE-FUEL CARS AND VANS THAT IS EXPECTED TO MAKE UP 70 PERCENT OF THE TRAFFIC ON SOUTHERN CALIFORNIA STREETS AND FREEWAYS B'Y THE YEAR 2010. THE DWP HAS BEEN A LEADER IN THE DEVELOPMENT OF PRACTICAL AND ECONOMIC ELECTRIC VEHICLES.
WATER CONSERVATION ixiXgiihhh%))))/(/(g<<;<@<
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DWP EFFORTS TO ENCOURAGE ITS CUSTOhIERS TO CONSERVE WATER BROUGHT SIGNIFICANT RESULTS IN 1990, WHEN WATER USAGE IN LOS ANGELES DROPPED AROUND 10 PERCENT. THE DEPARTMENT ALSO STEPPED UP ITS DRIVE TO hIAKE GREATER USE Og'1PCYCLED WATER FOR IRRIGATION AND REPLENISHING UNDERGROUND WATER TABLES.
RESOURCE MANAGEMENT IN THE 1990s I
maximize human resources focuses on DWP's top managers the 285 men and women wpo must deal with rapid change in the utility industry and growing pres-sure on all industries to do more with less. One of the toughest changes they must manage. is the work force itself a blend of cultures, education, men and women, young and old, each with its own values and work style. 'Il For the past two years, these managers have been taking part in an innovative program aimed at strengthening their ability to sh'are responsibility with staff as a means of promoting productivity, creativity and job satisfaction. Several factors distinguish DWP's man-agement development program from most employee training activities. 'Il For one thing, it is peer directed. A subcommittee of middle managers, working with a THE 1990 DROUGHT representative of the Department's Human Resources Division, structures and HOW BAD WAS IT?
designs the program, ensuring that their peers buy into the process. '9 It is also competency-based, built around a core curriculum that zeroes in on the kind qf trairiing support managers need to become more effective leaders. 'll - The core course, covering nine days, addresses such topics as the changing work force, valu-ing diversity, interpersonal and group processes, conflict resolution and listening skills. The coie curriculum is supplemented by presentations on significant issues lns Angeles got just and strategies by senior executives and support c'ourses in such areas as information seven inches of rain last systems use aqd communication skills. Il Focus groups are another critical com- year. The lowest annual ponent, helping managers assess which ideas work for them and which do not and total for the city was
/ 4.08 inches in 1953. But determining what techniques might be applied to get the most mileage from the it could be worse: The training. 'jl A further 4enefit of the program is that it facilitates communication town of Bagdad, Cali-fornia once went for two among managers from all divisions of the Department, fost'ering the feeling that years without a drop of they are part of a larger team working toward common goals. jl "I realize we all precipitation.
face the sa'me challenges," says Gloria Elgort, one of the participants. "I now-have a better understanding of the power that goes with leadership and how important it is to delegate some of my decision-making responsibilities to the people who work with me."
MAKING EVERY DROP COUNT;,&On April 1 1990 the DWP received the official forecast of the snow runoff in the Sierra Nevada, The news was not encour-aging: Los'Angeles faced its fourth straight year of drought. Never since data collection began in 1935 had the city undergone so many consecutive years where the snowpack was less than 70 percent of normal. 'jl The prospect of yet another year of drought triggered an ambitious campaign to conserve the city's increasingly valuable water supply. A task force'swung into action to come up with new pro-grams that could be used in conjunction with existing on'es to make a real impact on consumption. jl To spur residential conservation, the Department now offers 13
RESOURCE MANAGEMENT-IN THE 1990s-0
$ 100 cash rebates for residential installations of ultra-low-flush toilets, home water surveys to boost efficiency, lawn-watering guides, conservation kits with low-flow shower heads and toilet-tank displacement bags, and low-interest loans for such water-saving devices as drip irrigation. More'than 1.3 million low-flow shower 0
heads have been distributed to our customers. '5 Golf-course-operators and
,other large-turf customers were trained on ways to irrigate more efficiently, while Water Conservation A'dvisory Committees are being set up for commercial and JJ industrial users anxious to cut operating costs by reducing water consumption.
JJ
'i! Teams of "Drought Busters" trained in water conservation began touring the I'LWASH city in specially marked vehicles'to spot waterwaste and convert wasters into YOU DRY
'savers. 'll A $ 2 million advertising campaign in major print and broadcast media, public information activities,"a Conse'rvation Hotline and a host of land-scape water management efforts also contributed to a dramatic reduction in water use during the last three months of the 1989-90 fiscal year. li "Our biggest ii( <
JJ J challenge has been to create a water conservation program that gets results by changing people's habits, not their lifes'tyles," says George Martin, Director of
.Water Conservation. n"We try to make people aware of the shortage, explain their
~
J)
Atr drying one dish- stake in conservation and then support their efforts to cut back."' As water J
0 washer load saves supplies get tighter, the DWP also p'ushed ahead with plans to reclaim and recycle enough electricity to run a personal computer or "used" water for irrigation, industry and recharging our underground reservoirs. It color television for 0'aunched a two-year study at the Headworks Spreading Grounds near GriffithPark two hours.
to assure that reclaimed water returned to the groundwater will always exceeded health-based drinking water standards. ii Los Angeles moved closer to finaliz-'ng plans to use reclaimed water to" irrigate 1,400 recreational acres in the Sepulveda JJ 0 Dam Basin, as well as supplying four large irrigation customers along the Ventura
. Freeway.
'll "We have a strong commitment to make greater-reuse of our water in the future," explains Steve Ott, Reclamation Coordinator. "There's real'potential here, and we intend to take full advantage of it."
IJ A NAG I N GAY I TAL RE soURGErobablynosingle 0
more important to the City of Los Angeles than the watershed of the Eastern Sierra Nevada. Without the mountain snowmelt that flows into Inyo and Mono Counties, the city we, know could not exist. 'll To protect this vital resource, which in normal years'provides more than half the water supply for Los Angeles, the Depart-ment of-Water and Power has an extensive watershed management program that O
0 allows for multiple uses of the 312,000-acres of city-owned land in the region. The Department's multiple use policy allows a va'riety of activities that are compatible D
0 with water quality protection. 'll More than'40,000 acres of the city-owned l4 0
EN Vl RONM ENTAL OiVENS VALLEY L.
1'il hlULTIPLE USE AGREEhlENTS ON DWP ACREAGE IN THE OWENS VALLEY PERhlIT FARhlERS, CAhIPERS> FISHERhlEN AND HUNTERS TO SHARE IN THE NATURAL BENEFITS OF THESE LANDS, WHILE PROTECTING THE VITAL WATERSHED. hlEANWHILE, A PLANT AND WILDLIFE hlONITORING PROGRAM ASSURES THE LONG-TERhl SURVIVAL OF THE ECOSYSTEM.
WATER QUALITY l)0i hills>'
- 1) 11 ,g+Zg g,S l
- Operating income 255.0 278.2 254.3 256.3 259.5'9.1,%