ML20062K531
| ML20062K531 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 12/31/1992 |
| From: | Gage M, Waters D LOS ANGELES DEPT. OF WATER & POWER |
| To: | |
| Shared Package | |
| ML17310A857 | List: |
| References | |
| NUDOCS 9312220200 | |
| Download: ML20062K531 (50) | |
Text
n L0 S A N G E L E S D E P A R TM ENT O F W AT E -R A N D P O W E.R A N N U AL R E P O R T
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"G E TTIN G TH E 108 DONE" s
In 1991-92, the City of Los Angeles was caught up in events that had profound implications for its future. A sixth year of drought 1 across much of the state meant that the city continues on the knife's ,
edge of-water supply. Then, in April, a tragic civil disturbance ,
rocked the city's social and economic foundations.
Both events held special significance for the Department of Water . ,
and Power - in one case because providing water to the city's .
3.5 million residents is our job, and in another because it exposed ' Q the vulnerability of our water and, particularly, our power infra- ,
'l structures to manmade and natural disturbances. And it reminded us of other responsibilities we bear. ,
There were other challenges confronting us in 1991-92: earth-quakes, financial pressures made worse by reduced sales in a soft economy, and the continuing need to maintain and improve the t infrastructure to serve a growing population. But these problems '
are not unique to utilities. These are challenging and volatile times i for everyone, and the DWP is no exception.
Throughout the turbulent events of last year, however, the DWP' ' .
continued to do its job smoothly - serving its customers by sup-plying our city with adequate, reliable, low-cost supplies of water and electricity. Even when the city erupted into violence from
- April 29 to May 3, we got the job done.
t We are proud of these achievements.
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M Residential 30 Residential M Comnn raal aral indusuial 55 Conunenial Water Expenditure Dollar in Cents Power Expenditure Dollar in Cents l
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. Y' 5 Payrnents to the City 2 Capit.d improvements 9 Retirement Plan wsts alated to 5 Retirement Plan gosts related to operations operations 11 Capital improvements 5 Payments to the Gry 13 Ikht service wsts 11 Debt service casts IH Punhased water and energy 12 Fuel 2I Operating salaries and wages 13 Operating salaries and wages 24 i hher operating expenses 16 Other operating expenses
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'1 WAli K Powtu 9 loanw % Incre ne br$n&JJutw 30 iW2 1991 (themwn . Mr)2 1991- L (ib ruw) 4
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]) - Lwrerr sonus muau Sales 1 If46 188.4 (ll.MO 21.7 21.9 (0.9%) . '
Custorners - average number (47.9 646.9 0.29 '1,362.8
'l.361.2 O. lW (thousands) .
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FINavin is wwoss . is wwo,ss e i
Revenue (A) $ 317.9 $ 356.0 (2.3% ) $ 1,852.7 $ 1,830,1 1.2%
Operating Costs (10 231.1 252.2 (7.2'Y) t ,475.8 i A52.0 - 1.6'E Net income 51.6 40 0 29.0 % 74.2 95.9 (22.600 Payments to City ofI.os Angeles 17A 17A 90,6 92.5 (2.19f ) t Capital additions, net 175.8 178.7 (1.6W ) 462.7 399.0. 16.0%
Net utility plant 1,566.3 1,126.1 9.87 4,295.5 3,987.2 7.7% -
Capitalization - equity and 1,611,6 1,421,5 1347 ' 4 A5 3.3 . 4,207.6 - 5.8%
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kb hk The gust year presented the Department of Water and Power with more than its share of < hallenge and c hange. Among the events that made this an unusual year fi>r the DWP were these:
- During a sixth year of drought, Los Angeles residents responded to the city's rnandatory 15 percent water conservation program by cmting usage by nearly ?5 percent from normal consumption.
- This response caused a decline m water revenues that resuked in sharp iinandal pressures for the Water System during most of the year.
-- The Power Systern also faced fistal pressures when its request fi>r its first rate adjustment in more than three years was delayed several months.
-- 1:ven though snow levels in the Eas cru Sierra, the main source of DWP water, again 1i-11 short last winter, tee city could relax its conservation program in 1992 because water was avaitaL!e from the Colorado River, reservoirs in Southern California were high after heavy winter rains, and the city's wnservation efforts had been so successful.
-- Civil disturbances in Los Angeles in the spring of 1992 threw heavy operating burdens on the Power System, and the aftertifix cs and impli-cations of these events continue to pow (ballenges fiir the entire DWP.
Those and other events of 1991-92 hase prompted many changes within the Department. We have reorganized to deal more etTectively with the changing operating environment in which we find oursches. We imposed a hiring freeze to keep wsts down. We are aggressively working to find more etTitient ways to get the job done.
Abose all, we are dedicated to continuously finding a better way of serving our customers Part of the reorganization we implemented in 1991 includ-ed the establishment of a new, top.hsel customer service manager who will help reinfim e our commitment to good customer service.
As the urban disturbances Jemonstr ned once again, l.os Angeles is a city in the midst of profound social and euhural change. The DWP, one of the largest employtts in this metropolitan area, has a special responsibility to help keep these < hanges positive, and is developing programs and commit-ting funds toward this end.
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Even in a tumultuous year like 1991-92, the DWP cannot furget its respon-sibilities beyond our immediare urban concerns. Last year we continued to i.mprove our environmental performance with investments in new electric transportation development and repowering of the Harbor Generating
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Station, among others.
The n;tnainder of this decade promises more of the challenge and change we have recently seen. We expect our population to grow another 250,000 by the year 2000. We have a big job ahead of us in building on and maintain.
ing the city's water infrastructure and meeting ever-tightening water quali-ty requirements. We face major investments in programs to help our power customers use energy more wisely and more efficiently.
These needs will challenge us in new ways; challenges we can meet only with the confidence of our customers and the support of the community and eksted officials of the City of Los Angeles.
The lloard of Water and Power Commissioners and the management of the j .q Department thank you for your past support and look forward to serving .
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you in the year ahead.
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/-J r %f>f,g Michael Gage Daniel W. Waters President, Ibard of Water General Manager and and Power Commissioners ChiefEngineer .
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.x The 1.os Angeles Dt partment of Water and Power (DWP) supplies water and elet tru ity to the more than i.5 rnillion residents of the nation's set.ond-largest (ity. As the largest municipally owned utility in the nation, DW P has enore than i 1,000 employet.s serving a iM-vlu. ire-rnile area rangirig from the San Gabriel Mountains to the Patiiii. Ocean. it began municipal distribution of water in 1902 and ele ( tricity in 1916.
As a prophetary agent.y of the 1.os Angeles city government. the DWP receives no tax support. Its operations aie finanted ennrely by the sale of water and elettritity. Revenue bonds are its main source of external funding.
The 1)WP is admimstered by the lioard of Water and Power Cornmissioners, whose fise mernbers are appunted by the Mayor and confirmed by the City Council tor staggered terms of 6ve years. The lloard estahli,hes water and elet tric rates which are subjett to the approval of the City Council.
i 99z BOARD OF WATER AND F0WER C O M MIS SIO N E R S
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Continuing uncertainty over future water supplies dominated operations of the Department in 1991-92.
r Although Southern California's winter rainfall was within historical, parameters, the all-important Eastern Sierra snowpack - which supplies most of the city's water in " normal" years - measured only around ' -
69 percent of average at the end of the precipitation season.
Thanks to cusmmer conservation efforts, however, metered water usage in the city fell last year to 166.6 bil, .
lion gallons, down from 188.4 billion gallons in 1990-91 and 208.8 billion gallons in 1989-90. Daily per capita sales among the DWP's 617,900 water accounts fell to 126.2 gallons, compared with' 1419 gallons in 1990-91 and 165,3 gallons in 1989-90.
Conservation also reduced the city's need for expensive purchased water, the cost of which totalled $49.6 mil-
- tion in 1991-92, compared with $69.9 million in 1990-91. The net result of these conservation efforts, cou.
pled with the availability of supplemental supplies, was to permit the city to end mandatory water conserva-tion in April 1992, about a year after it was instituted.
In the Power System, energy efficiency, the cool summer of 1991 and the business recession reduced electrical demand in 1991-92, despite continuing growth in the city's population.
In 1991-92, the Power' System sold 21.7 gigawatt-hours (billion kilowatt-hours) of electricity, vs. 21.9
. 4 gigawatt-hours in 1990-91, a decline of 0.9 percent. The System's customer base remained substantially unchanged with approximately 1,362,000 at June 30,1992.
t The Department was able to take advantage of the low-interest-rate market last year to conclude two bond refinancings totalling about $223 milbw that will save DWP rate payers more than $55 million in interest ]
payments over the life of these instrua n. Additional refinancings are planned in 1992-93.
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WATER SYSTEM i
Water supply and demand took (enter stage in Bum RinhoN CosnurrEE To develop a rate struc-Los Angeles again in 1991-92 as the city emered ture that minimizes future revenue fluctuations its sixth year of drought. DWP customers cut while providing for the Water System's long-term their water usage over 25 percent from norrnal capital needs, the Mayor appointest a illue Ribbon .l consumption after the mandatory provisions of the Committee on Water Rates which issued its report Emergency Wa t er . .
at the end of fiscal Conservation Plan 9 ,If ,.
1991-92. Among its were passeJ by the City Council in March
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senation and sets Water System contin- q k- .. N '
the marginal cost ued to invest in long- -
of water at the term programs de- .
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tional supplies usage, such as ultra- :;- in l
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g (e.g., reclaimed water) dies, and other pro- , , . .
grams to increase *
- Easier-to-u nder-future supplies, such i. .
stand water bills.
as developing water 4 l reclamation options. .
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- More emphasis by 'the Water )
llut the sharp decline 9 System on long- I in water sales last year range planning seriously reduced .
and improved 1
Water System cash .
- M cost and supply llow, causing curtail- projections.
< Cuant-martar lining extenh the life of tilwlins at a Jhaion of the cost
_ ts extens5ye ment of a. of,cpj,,,.ent, u hile improving u sur quahty.
capital p rog ra m ,
- Sufficient rev-extending the System's yeardong hiring freeze and enues for needed water quality programs and capi-
. prompting an appeal for a rate adjustment. In tal improvements to assure that the Department _
January 1992, the City Council approved a continues to provide high quality water to all its 3.6 percent adjustment. customers E
MAKINoEVERY DROP COUNT, AcAIN AND.AGAIN As water becomes an increasingly scarce commodity throughout California, utilitics across the state are looking for ways to recycle waste water to stretch supplies.
The, DWP is committed to an aggressive water recycling program aimed at beneficially using about 40 percent of the city's waste water for large-scale irrigation projects. - By the year 2000, this program l will save as mu(h as 10 percent (about 80,000 acre-feet) of the city's potable supply each year.
About 6,000 acredeet per year of reclaimed water are currently being used to irrigate freeway landscap-ing and golf courses and for a decorative lake. Plans are completed and work has started 'to utilize another 1,600 acre feet of reclaimed water per year-yv7; .-v~m: mm m
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q ' and 1,200 acre-feet in the Sepulveda Dam Basin in the h[Q,fis ths dro6ght.over s San Fertundo Valley.
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h _ INolei/IMA$hdugh msi;M ; These projects utilize waste water that has been treated at
[, dre.sMS$thern cdliforrilafj the city's Department of Public Works water reclamation p
b ' irireic.h,t. nnmJ/ ar,dhorid plants. The water, which would otherwise Dow unused-r ,
ykormalpm/pitatl<inyldring thil/arff into the Loi Angdes River and ultimately the ocean,is fil--
b rainy $isonp sGstM hy>lf'situat/J4 qf tered and didnfected with chlorine to' make it suirable for (F .-lriin;rini;t/g5Uhr Eayern fler,rJ[9 these uses. It is then carried to the irrigation site by a dedi-
.., . . . . 1 yNetaJstnenntaintlra, .ri mostjf sr2; cated pipeline system.
e , . . , c y Quiter nprnshY,dmWfriWbnly gbrG I:a5NS9hnhtMMdmS/1s5Nh'//J/t] The Department hopes eventually to use reclaimed water
$se.spMillI[t/Arp?s ev6ayh)id/l] ' to recharge the groundwater supply _in the San Fernando -
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., ;# 4 G%pp/f thikat thisfear's ne&/d lousiofg Valley. Since soil serves as a natural filter, the water will b yngaingbnscrist/dvJi/ ss thelilxthy percolate through the earth and be blended with ground- :
%ss!MMeapinjislyp,Wipita)/dibaij water. The blended mixture would be suitable for iltink- .
ing. Yu6s lilow nawal,ninfif uill]he'iuvl0 k3rket }tarfhl$-mmalf$i/Ilay
' Ndionhjdly ?dr$d*[Nhgh5h Mi "We're trying to prepare for the future with recycled water 1 p ,
=y n>c>, that meets all government standards,'? explains Jerry Gewe, mhmm Z > :mm ? a.s Md ; g g "Although we're limited by the capital required to build pipelines, we're convinced that water reclama.
1 tion is a key element in improving the reliability of our future water supply. j B
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1 l I , ^1 1 The ik>ard of Water and Power Commis- 500,000 acre-feet a year of recoverable sioners has accepted the report, and now and reusable water flows into the ocean-1
- will review it to determine how and when each year in' Los Angeles.' Efforts are 1 1 to implement its various recommenda- underway to reuse this water to displace tions. imported water and supplement potable water supplies.
opmnne navinues RRW.fATION PitOJECTs With the open-3 u. wn. ., ing of the Greenbelt Project in the fall of - The DWP plans to increase use of this w 1992, reclaimed water will become avail- water for irrigation purposes and for able to several large-turf customers along recharging the underground-water table.
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the Los Angeles River north of Griffith Despite the revenue squeeze from reduced , t i o!l l IW 1 e , w e . .. A, .cie w t
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Park. Eventually, Greenbelt customers; water sales last yearf the Water System
, , , _ will receive 1,600 acre. feet per year of spent more chan $4.2 million for reclamat m &,,e L. recycled water.. This is the first in a series tion programs in 1991-92.
m mmmm, o,mw of water reclamation projects now under . development by the DWP.- Mom B AMN/Owm NAw ' Long< standmg environmental issues surround-Reclaimed water is an important, and ing the DWP's rights to water from the ; largely untapped, resource for easing the Mono Basin and other Eastern Sierra . - city's long-term water needs. Nearly watersheds moved closer to resolution last E 1
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INSURING WATER Q U A LITY A critical element to getting the job done - and getting it done right - is to work closely with local communities in finding effective solutions to mutual problems. Improving water quality is a good case in point. When the Department began kuking for the best ways to insure water quality at its ten open urban reservoirs a few years ago, it turned to third-party mediation to make certain that community groups had a voice in the planning process. -
'This is the first time a water utiiity has used mediation to build " m"C"7"EE'f'"]
relations with the communities most affected by its decisions / hg L Wha't'is thE DWP doing(j reports Robert %bimura, assistani engineer in charge of the
,jm easejhe eiivironmeni Water Quality Division. " Mediation has allowed us to cut
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l'd mpact of itsf ater ; ' through the barriers that can impede communications about a E op;eratio'ni
; ~aJ iniplacesslikn thei project, and we.re delighted with the results.
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Yq , Mine:ithgan impdring"': The Department and community groups are discussing plans to ; } g : uhter/ rom t/E'OLEnf$lk] build fitration plants at or near three open reservoirs: Encino, F ~^ ynnrly)8O} cars lig'ophe] Stone Canyon and Hollywood. The projects will enable the ]lD@Plhas mognisdihe im/idtindof] " DWP to comj;ly with a new state rule calling for treatment of , l jgedtlng ibeimgjtenu ailrjidhitali water at any surface reservoir lacking the. extensive facilities Lty)f thee arun.;s/n ment)cartlas ta j w ~ , . . - - a needed to keep storm water from mixing with the water supply. Arie / served mo(about //#enr/rrinmenf ::;
%talimp w, The plants, to be built at a total cost of around $400 million, A stgu up our stifwraalvitin r ..
effdtasjniten ils /ars/J{ Umk,,have will process 60 million gallons 'of water a day each - about a g Qte and kildlife of the regisnQThis j tenth of the amount handled by the Departmenti main 61tra. U meaniunglinuting oiniu;it/draud 4 tion plant at Sylmar, which filters all Los Angeles Aqueduct ghoundraerlynsid/Nyckh/ish water before it reaches the distribution system. ( i/ oaf Mbs on thfhe$lthpheig( > V.,c.and Shancing: tireatiorud un.. h,f DW%
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"The comtnunity is helping determine the style and exact / dado.Our?1990 asmyicnt?wab;/g) k> cation of the plants," hhimura notes. "Everyone wants the LCodnty S/l4fhrerrninore susNng SQ facilities to blend in with the surroundings and be as unobtru, c ronmdtfijtitigktiarafNrt[ifyears"tod sive as possible." : wheN ~
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Mediation is also hciping the Department come up with work-able solutions for dealing with such water quality issues as taste, odor, bacteria and algae, which are common to open reservoirs. , 1 b 1
1 . . , m , - -~ ._ - _ _ _ _ - . y Dyear. > Tl e final Environmental Impact WARR QUAIRY While the city grapples - ', Report (ElR) on the Owens Valley groundi ! with problems of supply and demand, ,
' water agreement -between Los Angeles ~ ' government regulatory bodies continue to tighten water quality standards, which.
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--and Inyo County was released in August
- 1991, and another EIR is due in mid- .will improve the safety and quality of our 1993 to assist the State Water Resources water supply but will also sharply increase" ,
Control Board in developing new rules for - Water System capital costs _into the 21st, Mono Basin water diversions. century. , 4 #' The historic Owens Valley agreement AvraAct wumta One of the early investments facing the includes sweeping environmental mitiga- EE"2" DWP will be several hundred million: tion programs by the DWP, such as .w l dollars over the next several years t6 pn>- restoring flows in the lower Owens River, tect water quality atltirban reservoirs. ,
. ; monitoring wildlife and plant populations m -
Meeting new state regulations ~ pertaining - 3 and providing additional recreational to surface water treatment is liksly. toL opporttinities. It also sets limits on the . result in building filtration plants for Department's use of Owens Valley m three major reservoirs between 1996 'and. j groundwater. the year.2000J a m .e
. m n Unfortunately, coun actions in 1991-92 in preparation for these improvements,;
cast a cloud over the settlement by per- the DWP will cimrinue .its 'successfulu canons soto mitting third parties, including state == community mediation efforts to workL
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agencies and environmental organizations, closely with"the community on informac to challenge the adequacy of the EIR. tion-sharing and cooperative decisiorit
- Final approvals and implementation of .m making. The goal ~of these efforts 'is to---
the agreement are being held up pending enable the .DWP to meet water qtiality, j the outcome of these m6ves. . regulations and the needs ofits customers
^
while creating facilities'that preserve the
- Mono Basin water diversions, which once "
iiesthetic value of these reservoirs. l represented -15 percent of Los Arigeles' ., ; In addition, the Water System is continu--
; water supply, were halted by court order
-in= 1989 until the level of Mono Lake -
-ing its infrastructure. improvement pr$
; reaches a point considered safe for.
gram, though capital constraints slowed 1 wildlife; Meanwhilei che State Water' .-its pace somewhat last year lThe wate.r
~ Resources Control ikvard has been ordered . infrastructure consists 'of the'7,000 milds;
- to review the city's water diversion licenses -- of pipes and water mains tha'r serve DWP- d and prepare an ElR, which the DWP will - customers'.from the north San Fernando q f tinderwrite, on what would happen to the . Valley to the harbot.:
kral ecosystem under various diversion y scenarios. Over ritne, thbse. facilities have. suffered ,
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extensive deterioration from internal corrosion, 66 percent'because funds ran shorr. ' At this rate. :-
, - resulting in leaks and lowered water qualit' .y Last the citywide program would not be complete unti!
, . year the Water System was forced to curtail.its. the year 2025.
~'infretructure upgrade program by approximately ,)
o i j Water System Facts in Brief Nr emlof Jme 30 19'M
. ~_~~ __. 1991-thE Or WATElt ,, j Average los Angeles p>pulation served 3,604 000 3.563,000 Average daily use per capita (gallons) 126.2 111.9 - -' ,
Water sa'l es liar Ihcal year (billion gallons) 166 6 188A Maximum daily demand (million gallons) 778.2 WATtn St TeLY (in billwns t>fpflms) texal supply (groundwater) 50.5 29.8 4 los Angeles Aqueduct (Owens Wiley) 57.5 40.5' l Metropolitan Water District (California and Colorado River Aqueducts) 95.1 130.8'
. Gross supply 183.1 201.1 ,
Diversion from (to) leal storage ' (l .2t 0.3 , Net supply to distribution systems 181,9 201) c o i 3 I
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* & -+ v see v =r-+= 1 -+m->- e-t-= W e -w U tf T' '
POWER SYSTEM Mild weather and a weak regional economy, com- year, and will raise average household electric bills bined with improvements in customer energy effi- by $2.90 per month. When adjusted for inflation, ciency, resulted in reduced electrical demand in the average electric bill in Los Angeles tcx. lay is the city last year for only the second time in 4.8 percent lower than it was in 1985. 10 years. Sales to DWP customers in 1991-92 were 21.7 billion kilowatt hours, down about 13elt-cightening mecsures throughout the Power b F S'"
- I"St Y'#' "I'i 0.9 percent from .. . ..
cMQ.(.p.d helped mitigate the 21.9 billion kilowatt Q: i hours in 1990-91. d.[N . .4 ff eEects of rising mts.
- A hiring freeze g .
.g. ].- .
L ..e a x . Esen though electrical 7H.p$ 7 - remained in effect use declined in 1991 . f s , $ . ..:. ,. ( J ': . throughout 1991-92, 92, Power System rev- .
'_.;'f~~-("'
f and other operating enues increased by economies, such as-w fl { . about $17 milhon. ..
. p .' j - { - - deferring capital pro-
- .[ j h ; jects, resulted in an Revenue gains were L -
{l .
$8tmillion reduction
, j.g.
olTset, however, by the - l .! in capital spending effects of increased - " from the approved operating costs since ,
- 9 l. budget the Power System's
~
last rate adjustment in - J With the outbreak of 1988. The net result -
. -civil disturbances in of these economic Los Angeles during forces prompted the r the spring ~of 1992, Water and Power the Power System Systems to seek rate b .~
faced one of its most increases during the .. serious rests in recent
- fourth quarter of years. Electrical Almut ?a 000 mili.ntial cratoners a par participate in the Better idas .
1991.. In January p j, , .j ,, j , g, equipment such as 1992, the Departi power poles and rrans-ment received approval from the City Council for formers were widely damaged, and Power System a 7 percent revenue increase for the Power System. resources responded quickly to restore power to the affected areas. (Please see page 18). 7 l The increase is expected to boost power revenues ! ENviumm.mt f.i mars Cominuing its efforts I by approximately $130 million in its first full
-1 i
l E 1
l REFRICERATOR$ Even though air (onditioners gobble up more energy during ho: weather, cefrigerators are che heaviest year.round users of electricity in the average household, accou ring for about 20 percent of the home-owner's electric bill. Now the f deral government, the appliance industry and electric utilities like the DWP have teamed up in an eHhrt to curb the energy appetites of the modern " ice box" by encouraging development of" super-efficient" models. They are also trying to Gnd a substitute fbr chlomnuorocarbon-based bmlants and insulation used in almost all refrigerators today. Chloro 0uonurbons (CFCs) are believed to lx causing deterioration .of
, the carth's omne layer.
~ _ - g
[cWhat is'the ..DWP . . . , . doin8 Federal standards for new refrigerators starting January 1, 4 : tof ean l. up the, air 1nN 1993 will require sharply lower energy use per cubic foot 11os Angelesh - down m 690 kilowatt hdurs a year for an 18-cubic foor-f
,. / Star /ing in the:19601/wej , odel, from 955 kilowatt hours at present. Meanwhile, (redignheht/dt it'sNed do/; envimnmental pressures to eliminate CFC use by the year
, [bef0siblefn> man airq$sii; 2000 are increasing.
ty standpbini to!iscrease urh/ectricalf hencrating N ca/ city inkiN Stsin10 ! To encourage apphana maken m acalaate their mean-h r serts 64r growiig populatiwjSd tre3 inm these dual challenges, several utilities pooled their j l
. bej:an building odr nad pstrer plan's,in t j resources last year, and are offering a $30 million rewani m
; remote larcanf lilah[ fA rizona fhu/( the Hrst company to come up with a practical CFC-free -
- l Naeda,f aw/ uEkyan im/wdiig phuer( refrigerator that beats the 1993 federal conservation l
' Jfrom)he Pacifics.N.&ihwrith We alss standards.
lyaii to imprute the.s..efficieniles of bar t 3 gewrating'p/ ants in)h[Rhiin s/ ti. , Another refrigerator program that also would help protect
$trofit them with the larM/Sisir ; , the environment w' hile creating jobs is in the planning 9ecIAo/vgf AJ.-ipia6s Fa//eChypouve, stage. Cash incentives would be given for recycling spare J
LingTTa/aNtheg[m6/oSd pnerary refrigerators. A refrigeramr recycling center would create a-ingitatiam pmImpmwe e/utricit[thaut , new industry and jobs, especially in the inner city.
< phi ll4 prmlbe leks tibit a pph'of thez Tf G//utai$s flg%vS[nkaeNelle[uy , The program would help protect the environment by i abitima td$(hater'uirys tim /5ced/,; . , recycling useable materials and saving landfill space; 1t Niining /wl/ talon 4denerating morey would also help to save natural resources and protect air NIstricity uite rrmvab/hnon,/4 //uting; ' 4 .
quality by allowing DWP to meer energy demand by nseiss /i4%/adnagy and sucpiagH reducing elec'tric hud rather than building costly, polluting {ing EuumercanjefjNiencyL power facilities. m . . - a- :4 E
m ,, - - _ . .- . . . _ __ 3 toward improving environmental quality The DWP estimates that retiewable-
'in areas'where it operates, the DWP resources such as its solar imd genthermal entered into an agreement with the projects will Gil another 30 percent of Bonneville Power Administration (BPA) ' future demand increases. . This means that will reduce air p'ollutants in Los fuels such as nuclear, coal, oil and natural?
~ Angeles during smog-prone summer gas could provide a significantly lower months. CI*#"*** share of the city's electrical generating i ,
capacity in 20 years, The agreement calls for BPA to supply m , - Paopruo Savmm m FWa nt Nars runt Ctstoma 200 megawatts of on-peak power to the ENFRGY EmanNcv Pumaum Department from May through August. pea CEE PEAK l{ A'simibr amount of power is then * - *'a* m
- 5=" # - *E* :
rj
, k,f
- returned to BPA during off-peak hours . g
) 1997 6,005 -290 5,715 6,517. 5,980
-m 2002 ' $37 '
during. winter months, when' heating f
' demands are greater in that region. The 2007- 7,011- -696 6,315S exchange thus takes advantage of seasonal l . i 9I 9e ow 2011 7Ao) 720 6,685/
- differences,between Southern California " ' " " "
.imgu.,m
, o-,om on and the Pacibe Northwest. - . .
" l""f""* "" Ctmoma ENtarm EmcaNcY P!MY,RAkt$ .
Energy efBciency remains a high priority- x 3,,m ,= CEE represents the Power System's lbr the Power System in meeting the ener~ primary efTort to ruluce future customer - i . gy needs of the Dcivrtment's electric cus~ demand' over the remainder of-this-
. tomers. Through its Customer Energy "O*T*#" " , century. An aggressive and 'an expanded Efficiency '(CEE): programs, the CEE effort was institticed at the begin-3 Department plans to offset the need to -
ning of 1991, including the development
' add approximately 500 megawatts of new l- ! !..
of several new'programsi
- g. generation during the next decade, g 9- -
Spending for energy ef6ciency programs n il -
- A Better Idea.: ~ Provides residential-
. in fiscal 1991-92 was around $20 million, customers with compact 8tiorescent ' ]
jl;lp_ -(l f 7 with $40 million budgeted for fiscal j lights to replace iricandescent bulbsv. > 1992-93.~ , [._ 11eaning accessible: refrigerator coils M and installing water savin'g devices'. Fortar DatANb Power demand in *"~ lIn addition, energy' and water efR- l
- Los Angeles is ' expected to grow at an "'""?" ciency infbrmation is made availablei annual rate of arvend 2 percent through i Energy Management Partnership; :>
the year 2011, with CEE programs antici- , Encourages. higher energy Efficiencies..
- pated to meet approximately 45 percent .
.m large commercial. and .. m dustrial :
o l of the increase through greater efHciencies . buildings that are bco,ng remodeled or across the customer base. renovated, through financial inceni t 3 9 . 9 E:
. ___L _-__=-_-_---_-__:__.
t
~
tives, technical and operational assis- cies would accelerate the arrival of Ltance, energy surveys and energy . highly efficient refrigerators and; accounting. freezers using coolants that don't
*- Commm-lalNewComtruction. Provides harm the earth's azone la'yer.
; financial, technical and other incen-
- Sma///Afedium CommercialInuntires.
; tives to encourage installation of" bet- ' Provides financial and' other incen-ter-than-code" energy-efTicient equip- tives to small and medium-size com-ment and building practices in non- 'mercial customers who install energy -
residential new construction. efEcient-lighting, heating', air condi-- ' AVEAACI Ni.fM8IR
* ~ Energy Afarketing/Information. Spreads Q"5l, y tioning and' building envelopei the word to all customer classes about improvements. a 14N
- opportunities to participate in various Sumy Stor Piuxmw .Meanwhile, the; ienergy efficiency programs sponsored 'mw '
Power System's supply-side program, to - Thy utilities, equipment manufacturers
. = 1 provide around 850 megawatts in news
. or governmental agencies. 3 capacity that is expected to be needed by
- the year 2011, moved ahead in 1991-92.
- CEE programs under development or g Labout to be launched in fiscal 1992 93 , ! Highlights of these programs includer
- dM SV W 91 92 linclude: . .
- Repowering L. A. Basin Generating . . ;
i Residential New Construaion. Encour- me was s u) Uniti. This program involves upgrad-In Bd:ne, 4 ages construction of "better-than- ing existing DWP generating stations code" energy efficient new housing, 20 to make them more efficient and less y through financial or technical and - polluting. The $170 million Harbor: other incentives to builders! owners. Repowering Project,- first:in the pro-no gram tis 'due to be complete by~ the .
*: .'Second Refrigeratur Reycling This pro- ,
l gram would encourage residential end of 1993. The Power System is '
" currently investigating other repower .
customers to dispose of older, inefl;. ing scenarios. cientfbut operating) second refrigera- , .l
" "" **" Coso Geothermal ProjectJ The DWP's.
tors. The. DWP would engage a 9 qualified ' contractor.co establisti an - first geothermal generation' facility,? , environmentally sound, cost-effective on property;150. miles north of z . U
' disposal arrangement for the old Los Angeles, is expected to begin pro < , !
appliances. Eduction in 1995. The Coso project isi # 1 V expected to generate. i50imegawat'tsi > l Sn]'er-Efficient Refrigerators. By pro.
- of;mwer when all phases are complet? 1S viding incc:ntives to (nanufacturers to ed early in the next century,
" leap-frof into advanced technolo_
gies, the Dernment and other agen-
- Sv/ar Central Receiurs. :The Depart-Ili a
u_ _d
4 DAY $ AND N1GHTS OF C A 1515 The civil disturban< es that mcked Ins Angeles last spring sent quial shockwases through the Department of Water and Power. During the three days of violence, nearly 100,000 calls - about four times normal - Hooded the DWP's phone lines, triggering one of the most massive responses in the Department's history. Since the thsturbances, the DWP has instituted new programs to address some of the social problems those esents undersweed, including more community outreach, new afGrmative action initiatives and steps to encourage business development in the area. Is rny electric bill going By the time the unrest was over on May 3,1992, more than 51,000 cus- *
#. to increase over the next comers had been without power because of partial or complete disruptions : few years? .
due to fire and other forms of vand.dism to power poles, lines and transthtm- .. I ers on hundreds of circuits. , k'#'E '### I"h 4"F " k ,[hwe ten among sixloutu of Despite the widespread damage and by working 12-hour shifts around the ' any major urhau ana of the ch>ck, DWP crews had power totally restored to all anas by the fourth day : United States, and willj>mbably om/in-after the disturbances broke out. This was accomplished despite repeated ue that way fLr the fsretuable future threats and violence directed mward the workers. This der't meari,'houmi; that rates will never go up.' Eten thdugh we are for a time, at the height of the violence, the DWP was unable to reach many yy,.fj,g ggf 3,,,y ,fgf , g,, jypyy, of the trouble spots lxcause of unruly cmwds. Even with police escorts, the ! rig plEirity andpsip, ming capital! Power System crews were often forced to run a gauntler of nxks and bottles 3pe,iding. it would nor in pru)/eni to thrown at their vehicles when they tried to enter the area. pglect ucccesdry maintenana'and improsyments that kup our systern up-to-The Gnal damage to the DWP included 12 power lines knocked out,41 cir-hie and eficient. Since 198% us km cuits shut down,159 power poles destroyed, and the DWP Central Avenue been able to hcp our rdte irunines at er Branch Office destroyed by fire (with a temporary replacement in operation
.klaw inflatwn, and we hope tb continm within two weeks). Nearly 46 million gallons of water was used to fight
- doing that thninghast the 1990s G res. In all, damages to DWP facilities and equipment were estimated at
$1ei million. Recogniling its special role as an employer and provider of critical services, the DWP has increased its involvement in the an~ected community thmugh greater outreach eflorts with area schools and community gmups. It has also joined the ReUuild L A. effort, which aims at creating 50,000 new jobs in the area over the next five years, and has made its services more accessible to residential and commercial customers there. The civil unrest of 1992 brought many of the community's underlying problems into sharper focus, and served as a reminder to the Department of Water and Power that planning and preparation are invaluable tools in time of crisis. Planning and a committed wurk n>rce were the ingndients fhr a fast, effective response to restoring services under suc h adverse conditions. E
... - - ~ . .- . . - - - . .- ~ .
i- j 1 l 1
. ment is participating in the Solar Two demon- many as environmentally preferable to increasing stration project designed to show the feasibili- the gasoline-powered fleet in the Los Angeles ty of molten salt technology for storing heat 13asin as population increases in the next 20 years. I to generate electricity. In this process, nitrate . .
salts are rnelted with solar mirrors (heliostats), The Power System's 1991 Loads and . Resources and the molten material is stored in tanks, study reviews five different scenarios for electric. .
. retaining most of its heat for later use. vehicle usage in the Los Angeles 13asin by the year .
2011. The most optimistic of these assumes com-Commercial use of this pn cess coukt be possi-ble by the year 2000. pli nce with the California Air Resources Ibard
. requirement that 20 percent (or about t180,000) of a Fuct Cc//s. Along with several partners, the
, the vehicles on the road in the DWP service area .
DWP is exploring the use of fuel cells for would be electric. The least optimistic projection
. large-scale power ger$eration. A two-assumes only 62,000 vehicles in the electric ~ fleet megawatt demonstration carbonate fuel cell
' by then, now under development is expected to be.
. operational by 1995. All the scenarios would impose new requirements
, ori the DWP, from meeting new demand peaks to Euenar h.AmrtwiAnoN .rhe Power Systerns
. assisting with development of new building regu-
. efforts toward encouraging the use of electnc veh.i-lations providing for recharging access. Changes cles is. being focused on developing the appmpn, ate ,
. . m the rate structure to provide incentives f,or elec-infrastructure to support the emerging electncal tric vehicle ownership would also be desirable, vehicle industry. Electric vehicles are seen by Power System Facts in Brief
%r mied June 30 tW2 .1Wt ,
Nt3 f41 R OF CUSTOMERS -
. Residential ' 1,169,000. 1,165,800 Commercial 172,700 173,700 #[
l Industrial 18,300 18,90n All others 2,800 . 2,800 [ , Tot.d cuawuen <>falldwer 1, % 2,800 J,361,200 ) , 1
, Poun UsE Sales to ultimate customers
- kilowatt (kW) hours 21,$ $ 1.713,000 21,659,758J)00 ,
Sales to other utilities
- kW hours .145,311,000 - 210J92/)00 '
Averge annual kW hours per residential custonwr 5,083 5,166 Net dependable capacity, kilowatts 7,252,000 7,263/100 7 i E ,
+
-r-, mm
l 4 1 A DMINIS T R ATION l Cevimtut Sr avict Building a customer-driven people understand that customer satisfaction culture in an organization as large as the drives everything we do in this business." Department of Water and Power is not an overnight task, but important headway was In mcent years, increased competition in the utili-ties industry has made it easier for major cus-achieved in 1991-92. For the first time in the Department's history, an executive-level manager t mers to "sl;op" their utility services. The trend is now giving this challenge his full-time and seems likely to continue, and could soon give
. .1 undivided attention. smaller customers the same option - putting greater emphasis on the need to keep our utility What is a customer-driven culture? customers satisfied.
- it takes many forrns, says Robert W. Carr, the Last year, in a sweeping reorganization of the .,
DWP's new Executive Director of the Customer DWP, the customer service portfolio was lifted up l l
- ~
- v. a , y ... . . a-
. fi
- g. .<e .
.s.
--L-..____ .
.; . 7 , W [
J $ J
~~.. . 1 A ndlofuater andenergy efpciemy, ik new Anthony Office BaJJteg hainer I,300 emphyas uvrking in many divisions. -
Services Organization, and all of them must be to the top of the organization chart, where it has nurtured and encouraged. It can be something as . equal visibility and credibility with other systems.
~
simple as returning a phone call or as complicated Now it's up to Carr to use' this access to build ' ! as helping a customer save thousands of dollars teamwork with h'is fellow DWP executives. through better water and energy management. The Department's current state of readiness for a- - Our job is to get everybaly thinking about satis- customer-driven culture will be sized up. A ] I' fying our customers, whoever they are " says Carr, review of customer surveys to identify the a 29-year veteran of the DWP. "We need to have strengths and weaknesses of the system then will
\
y ,..,,--.-._y
.,. ., .,..,,---,.3----%-. ~.-n -
i I-be conducted. DWP will also be hx; king at what
. other utilities are doing to build customer service.
A'Britta .WAY o r .D olN C 7 BustNE55 "We know from our surveys that our customers are ,
.. pleased with our people and their courteousness,"
,The DWP continu.es its long-term C.arr says. What we need to work on is our commitment to improving service .and -
responsiveness - how long it takes us to meet the productivity throughout,its operation. , customers needs.,, These objectives are being giv.en added .
- emphasis. and. scrutiny : as the' Over the long run, Carr will oversee development of Department pur' sues better ways of '
a m build a n imal mmr mic cuh-doing business. . that combines h.istoncal strengths w.it h improve-As part of this process,. traditional ment strategies. He knows the going will not , em;iloyee-management relationships ~ "I"'ays be easy, but is encouraged that most DWP are being redefined, and extensive employees give customer service a high priority.
. training is underway to aid managers -
"There's still a gap between customer service as a -
and staff m. sharing responsibih. .nes.
~
pr ority and a genuine, deep-down commitment i Here's how the old system compares-to the cause," he says. " Closing that gap is what with the better way. we're all aboutf Top Nmv Maageant . Dimiim
-- Prora: MaaNoun: DunnrNa The individ i-
" Top-dow n" - Mutuai trusti' al employee has become the cornerstone of control - consensus decision-making Department efforts to promote productivity and Pyramid chain Shared vision, achieve higher levels of customer satisfaction in a of command ' - resp (msibility; consistent and difficult operating environment. Two concepts m r$i)a ons tha nxognize the critical part individuals play in the Department's perfortnance - employee Turf barriers Teamwork; -
cross-system and empiwerment and the need to balance work and cross-divmon - access family issues - were given special attention'dur-Internally 2 riven Customer-driven ing the year. decisions considerations . , Vaguely detined Goal-set't ing with l & Ly to Employe Intwhrment A DWP study quahty objectives measurement : - and responsibilities' - systems and '
~
group -- comprised of major division heads and accountability for results representatiyes of three maior employee unions - Program directed Process directed recommended implementation of a far-reacliing L Change pmeess _ Low-cost plan to involve employees more fully in quality 1 slow and ; . innovation, = complicated .. . ongoing improvernent paresses.
, improvements =
i l E 1
I i Such processes, aimed at strengthening service and be otherwise unable to report for work. furthering employee pmductivity, will be phased in over time under the direction of a steering The Department's trauma response team, part of l team. The processes are designed to build a cli- its Employee Assistance Program, swung into full mate of teamwork and trust tilt as specially trained peer 77 " c unsel ts met with employ-in which employees share in N P ~" Q goal-setting and decision- (5 [hpunj@u *3 ng t ees and their families to help. making. . t n8 15Ufof them cope with the psycho. [ e F' q clyourcustomers?:
,f3g . . .
logical effects of the unrest. As part of this eErt, senior Team members also assisted
;aiThe w x.e- DWP has)ut n Puftom/r3 management will be asked to 4 pfa/IJ/actiodiat tFigllEfitQ, i A employees of other city articulate the Departrnent's :.. kdN/#inNhearQkd departments.
long-term vision of quality b,hafs upinnieughandndgo.h] improvement and to guide { lCuje>&@h yf inir Kaping Pace with Change staff in assuming greater [#' n h to n@fd] ste Diversity in the workplace ve 'takitt many:?J #psdto 'remained a primary concern responsibility for cost and Ii.residt,h b EW we' strengthen ourm.L .JsE tratamerJepsce
.~
iQs arear for quality improvement- ka ~~si E ' ' R35 C ' I. ; during the year. Due to a VWe're trytrtg tbam k"e billpaymera vaster; ; .. Extensive training at all levels , jf. u'r e"xa'p rupegg #alhng U r N mepp-m <ent <adcp' tm cost-saving hiring freeze, will ease the transition to a there was little change m, the him j/jsug/ Nut $/d ritykNhr//5Alng y c mposition of the Depart-better way of doing business inin)pstudiiin net /hd%ti/ityh that promises to sharpen the Mdmirpecies withist/xrM$ clef /(d% ment's work force. More than DeIiartment's competitive hm&M/ersNdeu$hnrNpdsong half (51.7 percent) of the -
~~
r - " --
'N edge as it enters the 21st cen- hnymp"tpa ik gy'de A%'" tej DWP's 11,000 employees are tury. utinf natidph h} pis as d minority, and nearly a fourth p%eler and eiurgconferrat/onge /* (23.2 percent) are female.
A Ddicate B. dance Aware that family issues often inter-
},?'I"kW'lOtomen gupf#n a m.
# y @7n:f?""I'A""Pltf.at
. />
m. 9 The Department stepped up a n a e%rts last year to identify and fere with workplace consider-i ? year & hamed an eneistibi-letd cut-f. eliminate barriers to the ations and performance, the R sometterrace;
.. R E .mattager & ..with .JnR Levaku . ..
DWP gave increased empha- "si# 1- . 1
-.- advancement of. minorities -
n[0xilmrny to brtug tha<nges:,that tdlli , sis to helping employees ! i# E i o) - Mij and women. Training oppor-
~
ma^ke utan'more nspnsny"Our can z q . .
*"""'"5 II *""#b I I balance the demands of both. {mjfmend, ffjf gr,a$j//}imt/sudo$
[ygronc 7 i instance, were offered in the kw During the civil disturbances igh. , d various crafr occupations last spring, for example, two within the Department. of the Department's three child care centers were forced to shut down. One center, however, Reflecting the trend toward "telecomrnuting" - remained open extra hours and accommodated working from a remote h> cation via FAX, comput-additional youngsters to assist parents who would er m dem and tdephone - the DWP launched a l m
. ,. ~ .~ .
7 i ,, y c pilot program in which 24 employees now work at home or satellite h> cations two days a week, deliv-
.T o ; Y o u a H e A LT H- '
ering their work product ekctronically.
' One of the surest wa'ys to cut business : This use of computer technology not only saves costs and spur productivity today,is to particpants the cost and strain ofcommuting, but >
develop a healthier work forte,'and helps reduce traffic and air pollution in the the' DWP's ambitious wellness pro-~ community. gram'is designed to do exactly that, hNnUR last year's steady decline in interest L ' During the year, the Department and. rates permitted the DWP to save several million I its health insurance carriers joined - dollars through refinancing part ofits outstanding forces to sponsor a series of health pr N debt. The pnwess is similar to refinancing a home l1 motion fairs to help employees and mortgage,' paying off old, higher-interest loans ! their families stay well thmugh better with money borrowed at more favorable rates. , C nutrition', exercise and; preventive . care.' The Department also provided - In a single day last year, the DWP completed n i
' on-s'te blood, cholesteml and hearin8L a refinancing of some $223 million in bonds - :
testscas well as ' mammography test-' $63 million for the Water System and $160 mil-ing for female employees. lion for Power - that will result in interest sav-ings of some S56 million over the next 36 years. f tugnizing the heavy _ toll that smop The DWP borrows these funds to partially finance mg takes on health and 'its budget, _ the DWP moved closer to establish. its capital program. ing a smoke. free workplace, ofTering - The debt-refinancing effort wd. l continue into iemployees financial incentives, classes
. ,, 1992-93, and is expected to result in farther sig-and the m.cotme patch., to help them
" ^"' ' *"'" '" 5" "ES' I" """ "' 8 "
kick the habit ! July 1992, the DWP was able to obtain its lowest
".With' health care costs for our; interest rate in nearly_14 years - 6.114 percent employees 'and retirees running overL per annum. _.
.$61 million a' year, it's like money.
in 'the bank for us to help them stay; Despite the decline in Water System revenues last well," notes'Beverly King, director year, the overall financial position of the DWP of Human Resources, "Af healthier 3 remains stmng, with the bond rating at the high-
. work force with healthier families also est levels in the municipal utility field. .
l
'I means lower absenteeism and higher
'.- In June 1992, the Department named a new per- 'l productivity."
manent Chief Financial Officer, Phyllis E. Currie, 4 replacing Norman J. Powers, who retired the pre-viousJuly. William G. Williams semd as interim l Chief Financial Officer during most of 1991-92. - n
i 1 I j i I P u T T t w c 1 E N E R G Y ' E F F l. C i E N C .Y l I N T o P R A C T I C E , Wheri the DWP in.ip88 began planning a new office building to ease overcrowdjng at its downtown headquarters, it used the opportunity to put into practice some of die energy;effic , ciency fechniques it urges its customers to;adopti [ The newly completed DWPJames R Anthony Office Building in $un Valley Mame(! after . the DWP engineer who was the major force behind the Intermountain Geherating Station in/ Utah) features the latest technology in energy efficiency, as well as drought-resistant plantsi , , and other' water saving devices; .... m: ,
. A state-of-the-art thermal energy storage system, for example, allows the 315,0004quaree ~
foot building to run high-efficiency chillers during evening off-peak hours, when electricity : is cheaper. During daytime onipeak hours, ~this chilled water is pump $d through the~buildk
. l ing's heating, ventilating and air conditioning system to cool offices and equipment, include ing teniperature-sensitive computersi ~ -
1 e
^
, j The four-story. facility also makes use of"daylighting"- an energy-saving practice Mwhichi .. f .;
. =
7 _. . . . . . , ,, . - e. q computer-assisted sensors measure the amount'of ambient liglit imd adjtst artificial, lightingi: a
.. .. . . . . s , . , _ - . -
accordingly, thus taking maximum advantage' of natural ligh't .and saving app lreciabl(oui
- electrical use. s 5 To minimizebutdoor water use, th8 facility;has b$en landscaped with"such usht.resistantj plants as lilies of the Nileistar jasmine, Japanese honeysuck.le and more than 4,000 escallo-l 4 nias, wlich give the appearance of desertLwildflower growth /Indo6rsNll rest rooms are: $
equipped with ultra knv-flush toilets 'and other water-saving fixtures? + 1
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Arated on a 35.5-acre parcel of city-owned land, the bui.lding houses a m$dern water-qualityl ' ,
- lab and computer facilities,.as well as office space for some 1,300 employeestin Customer ..
( c .. . Service, Finance and Accounting; Commercial; Human Resources, hianagement Informationi Systems and Water Quality divisions, and the Telecommunicatiohs unirof the Powei Sfstem;
' Services division. .
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; 1 Architecturally compatjble widisurrounding structures, the Anthony.Ofdce Building hksi
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. received an award for design ex6ellence frhm the Ims' Angeles Cultural Affairs Commission! -
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i l ll d Tin: WATrn Sy3 Tat - Statement ofincome
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Statement af Retained Income Reinvested in the Business Balance Sheet ,; Statement of Cash Flows Notes to Financial Statements Tut Porra SysTr3t Statement ofincome , Statement of Retained Income Reinvested in the Business ., t Balance Sheet [ Statement of Cash Flows Notes to Financial Statements : e i 9 (
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' FIN A N CI AL R EVIE W
-1 Operations for fiscal year 1991-92 resulted in a 0.9 percent da:rease in consumption of electric energy and a decrease of 11.6 percent in water consumption due to conservation.
R Combined operating revenues for the Departmenn Water and Power Systems totaled approximately $2.2 bill lion, an increase of $ 12 million over the previous fised year. The operating revenue of the Water System decreased from 1990-91 to a total of $342 million.l Net income amounted to $52 million, or 29 percent above the previous fiscal year. ; t A total of $176 million was spent by the Water System on capital construction, most of which went toward < the improvement of the water distribution and supply system, as well as water cluality programs. Increases in Power System operating and debt expenses reduced net income to $74 million, down 23 percent - , from the previous fiscal year. a The Power System invested $463 million in capital construction for the year. Major expenditures were addi. - tions and rmxlifications to the electrical distribution, generation and transmission facilities. l 4 . a
'Ibral assets of the Department at June 30,1992, were approximately $6.8 billion., of which $5.1 billiun ()
relates to the Power System. i ^ FINANCING ACTIVITith During the year, the Power System sold two issues of revenue bonds in the amounts ' of $150 million each at average interest rates of 6.7 percent.' The Water System sold two issues of revenue . bonds in the amounts of $100 and $50 million at average interest rates of 6.6 percent. Outstanding bonds J and revenue certificates at June 30,1992 totaled $2A8 billion for the Power System and $580 million for the -. Water System. Both Systems met their maturing payments on bonds.. 1 Costs ann TRANsHE in accordance with its basic fiscid policy, the Department pays all costs 6f operation'c debt service and part of the cost of capital improvements from current revenues. The remainder of the cost of ; capital impmvements is met thmugh sales of revenue bonds or notes and from contributions in aid of con-' U struction. Besides meeting all costs of operation from current revenues, the' Department paid.$108 million into the ; reserve fund of the City in support of general City government l More than 83 percent of that amount came j from the Power kevenue Fund. Operations of the Water and Power Systems 'are entirely self-supporting and no financial obligation or tax J burden is placed on the citizens oflos Angeles. H
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Qv ~. a j i W ATER 5YSTEM ST ATEME NT. 0F I N C O M E. ; da Tiamna) Year em!rJ. June 30 1992 N)1 : 15)o - Operating Revenues .
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, Residential $ 122,121 $ 119,156 ' $ ' 125,470 ' - Commercial and indust riel. 183,331 189,518 191,236-Orher - 36,798 39,025
- 31 A. 50
- Total operating rennues 342.250 347,699 ~ 348,156i 1
Operating thpenses . y; Pur(haud water 49,607 .69,911 71,814 .-
- Purc haud energy 10,158 ,10,501-- 12,962 Other operating exproses 135,129 c 128,27.i . .105,725 ;
" 39,196 43,485 '39,849 - Maintenance Depreciation 41,806 _,J7,t272 35,270 . g Total operating expenses 275.896 290,146 '265,620 ' '
- ' Operating Income 66,354 - .57,5 5 3 = 82,536: ,
c 3 Other Income and Expenses, Net 5,6 M : 8,28 t 6,428~ :5 Gain on sale of Land to Power System 10,600 ; Income before dcht expemes 82,589 61 H34 , 88,964. Debt Expemes .. . , Interest on d ' eht 37,325- 29/F)8 28,578 l
. . (3.258) (2,196)
Allowance for funds used during construction .(6.290) : Total debt expenus 31,0 0 /25,840. 26,382: Net income $ 51.554 $- ' 39,991 $ 62,582- ,
$TATEMENT OF R E T A I N E D' IN C O M E R EIN V E ST ED IN T H E' B U S I N E S S-
J ana mmu wenMjunc 30 wn iwi. ' 19w
' Babnre at beginning of year $ 56i,135 I $ - 541,549 1
$ 493379 Net income for the year $ 1,55 4 39 99I- 62,582 615,689 . 5H1,5 4 3_ ' 556,561 ,
Ini- Payments to the rescrw fund of the City 17,385 . 17,4D8 :15.012 L Balance at end of ycar $ 598.304 ' ~$ ' 561,135 $ 541,549 h Y$ Y dOMfklY.
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WATER $YSTEM BALANCE SHEET th, Thmsa la June m M' hol ASSETS l'obty Plant, at origmal mst Soun t of water supply $ 255,301 $ 247,247 Pumping 73,931 59,927 Purn a t son 157,215 149,422 t hst ribution 1,112,038 1,295,076 General 195-179 145,751
/ 2,093,991 1,897,423 less Ar(umulated depru iation 658,S'6 616,501 1., H 5,1 18 1,280,922 Const ruc tion wor k in progress 131,229 145,159 Net utihty plant 1.566,},17 ,_1.,426,081_
Current Assets Cash and mvestruents 6i,527 58,101 Customer and other auuunts rei eiuhle, l',,s
$6,200 and $600 allowance for losse- 50,897 47,032
[)de IIom P(Mef hystern 14,200 - Aarued unbdled revenue 21.213 32.731 Maten.ds and supplies, at average owt 14,772 19,318 Prepayments anJ other current assets 29/J85 9,7(>i Total uinent assets 195,69i 167,252 Toral utdity plant nd assers $ 1,762,n11 $ 1,59 3,3 3 3 CAPli AlIZNIION AND LI Alill.11if.5 Capitaliation Eqtut y Retame : mcome reinvested in the business $ 598.304 $ $ 6.1,135 Conte:buuons in aul of wnstrucnon 416,526 427 096 1.,01 LH30 991,23I Inm;-term debt 566,806 430313 Total capitah zation .l 611,636 1,121,511 rurrent Labilities Long-term debt due wichm i,ne 3 car 12,560 12,360 Accrued mterest 11.613 9,401 A( wunts payable ,md accrued expense, 'O,668 79,421 Wer-recusercJ purtbased water and energy costs 12,681 27,716 Customer d !wsits _ 712,883 _ 42,991 Total otrrent liabduies _ 150,105 __ .1_71_,7_H9 Cl>llifilitmt't'it$ ilnti bonTHigeTh ic$ Total tapitaliz;it ion and lialailities $ 1,762.041 $ 1.593,3 3 3 't i, .1 nwun was c:an mmv.d pan 4 ska j'os.m i.z! nwew
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r= W' A T E R . 5 Y S T E M ST ATEMENT OF C ASH FLdW5 . l 'itn'huwmM
- Nr erelJane 30 . lW2 .1W1 l'IN 7.
- i 37 Cash flows From Operating Activities:
Net inc ome $ 51,554 $ 39,994 5 62,582, . Adjustments to reconcile net income to net cash provided ! by operating activities: Depreciarion 41,806 374972 35,270 ; Allowancc for fmxis used during consuuttion (6,290) (3,258) . (2,196)
- Provision for losses on customer and other accounts receivable .
7,870 1,802 '1,496 - ;j Changes in current assets aral liabilities: , Customer and other accounts receivable ' (11,735) (7,422) - (10,621) L Due from/to Power System (14,200) .16,972 4,907 . i( Aurued unbilled revenue 9,521. (2,736). 1 (j,791)L Materials and supplies 4,546 941 (4,147) - Prepayments and other current auers (19,321) (190) 1,9651 , Aurued interest 2.212 - 1,131 (1,162) - Accounts payable and accrued expenses (8,653) (4,180) '29? Over-remvered purchawd water and energy costs (15,035) 19,323' 11,242; -
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Customer deposits (108) ^2,837 1,512 - Net cash provided by operating activities - 42,167 '103,186 97,086 Cash Flows From Financing Activities; . Sale of revemic bonds ~ 148,540 74,254 - -- q , ~ Sale of advance refunding bonds 62,535 - .36,598 i
. Contributions in aid of construc tion 19,430 16,718 33,779 - , j Reduction oflong-term debt - (11,847) -(11,518)! '(19,967) .
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Amount deposited in esuuw accounts and offset against i advance refundmg lxinds . (62,535) . (36,598) - , Payments to the reserve fund of the City (17,385): (17,408) ' (15.012) ? > Net cash provided by (used in) fmancing activities 138,738- 62,016 l (1,200) , , Cash Flows From investing Activities: . (175,782)- '(178,706) '
- Additions to plant and equipments net : () 13.099)
Cash and mvestments: .
'i Net increase (decrease) 5,123 - (13,474), (17,213) .
13eginning of year - . _ 58_,404 71,878 . 89,091 J End ofyear $ 63,527 $ 58A04 5 71,H78 - .
,i Supplemental disclosure of cash flow information: .
Cash pad during the year for interest j _ li,791 $ 36,880 L $ 136.799 - )
' Tiw aawyMnyng note .6,s a enregndpar t af dwu paamhd stawmn. -
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F W ATE R SYSTEM N OTES TO flNANCIAL STATEMENTS ,
.' 't Non A - SumAar or SKwncANT AccoUNUNG POUCH 3 Tiv Dqurtnant - The Department of Water and Power of the City of Los Angeles exists under and by virtue of the City Charter enacted in 1925 as a separate proprietary agency of the City. The Water System'is respona -
sible fi>r the quality and distribution of water for sale in the City. Utility plant - The costs of additions to utility plant and replacements of retired units of property are capital-ized. Costs include labor, materials and alk)cated indirect charges such as engineering, supervision, transa , portation and construction equipment, retirement plan contributions, and certain administrative and general expenses. The costs of repairs and minor replacements are charged to appropriate maintenance accounts. The ; i original cost of property retired, plus removal cost, less salvage, is charged to accumulated depreciation, Depraiation - - Depreciation expense is computed by the straight-hne method based on estimated service ' l l- lives. Estimated service lives range from 10 to 50 years. Depreciation pmvision as a percentage of average depreciable util ty plant in service was 2BX,2.5% and 2.5% for fiscal years 1992,1991 and 1990, respec , ris ely. Cad > andinmtvunts - The Department's cash is deposited with the City Treasurer who invests the funds in g securities under the City Treasurer's pooled investment program. Under the program, available funds of the l City and its independent operating departments are invested on a combined basis. These investments are v.dued at cost, which approximates market. At June 30,1992 and 1991, cash and investments include $9 and $6 million, respectively, of restricted balances relating to bond redemption and interest funds and self- ! insurance fund. The Department considers all cash investments with a maturity of three montl5s or less to bb cash equivalents. q Contri/;utiom in aid q/ construction -- Under the provisions of the City Charter, amounts received from cus-tomers and others fiar constructing utility plant are combined with retained income reinvested in the business to represent equity thr purposes of computing the Water System's borrowing limits. Accordingly, contribu, - i tions in aid of construction are shown in the accompanying balance sheet as an equity account and are not off-- set against utility plant. Rcrenas - Revenues consist of billings to customers for water consumption and include amounts resulting from a purchased water and energy cost adjustment formula designed to permit the full recovery of purchased
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water, energy costs, and certain demand-side management and water reclamation expenditures; The
' Department projects these costs to establish the cost recovery component of custo'mer billings and any differ--
ence between billed and actual costs, resulting in over- or under-recovery of these costs, is adjusted'in subse-; quent bil_ lings. The Water System recognizes purchased water and energy costs in the period incurred and accrues for esti ' ' i mated water sold but not yet billed. ~ d b The Water System's rntes are established by a rate ordinance which is approved by the City Councili The ' .] Water System sells water to other Departments of the City at rates provided its the ordinance; Ddv expenses -~ Debt premium, discotint and issue expenses are deferred and amortized to expense over the : 1 lives of the related issues. . i L f
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I A//wanafhrfundr uudduring muitrution (AFUDC)- AFUDC represents the cost oflorrowed funds used for
- the construction of utility plant. Capitalim! AFUlX' is shown as part of the cost of utility plant and as a -
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reduction of debt expenses. The average AFUDC rates were 7.2%,7.5% and 7.8% for fiscal years 1992,'-
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1991 and 1990, respectively. Ru/amfication - Certain financial statement items for Escal years 1991 and 1990 have been reclassified to conform to the 1992 presentation. j NOTE B - Losc-7am Drsr , Long-term debt outstanding at June 30.1992, consisted of revenue bonds due serially in varying annual amounts through 2032. Interest races, which vary among individual maturities, averaged approximately : 6X4 and 7.1% at June 30,1992 and 1991, respectively. The revenue bonds generally are callable ten years - after issuance. Scheduled annual principal martirities during the Gve years succeeding June 30,1992 are $13, .
$13, $13, $13 and $14 million, respectively. Revenue lmnds are secured by the future revenues of the Water System. The Department has agreed to certain covenants with respect to bonded indebtedness, including the - .l
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requirement that the Water System's net income, as defined, will be suflicient to pay certain amounts of I future annual innd interest and of future annual aggregate Imnd interest and principal maturities. in fiscal year 1992, the Water System sold advance refunding bonds totaling $63 million, which decreased - its aggregate debt service payments by $14 million over the next 36 years and resulted in an economic gain (difference between the present value of the old and new debt service payments) of $5 million. The Water , System also sold advance refunding bonds in prior years. The proceeds of the advance refunding bonds were - , .i placed hi irrevocable trusts and will be used to redeem bonds currently included within long-term debt at scheduled call dates. Until the Imnds to be refunded are called, interest on he advance refimding bonds is. payable from interest earned on securities of the United States government purchased out of the proceeds of the sales and held in bank escrow accounts. At June 30,1992, $167 million of these escrow accounts' have ; i been offset against the advance reftmding bonds in the accompanying balance sheet. After the monies'in the escrow accounts are applied to redeem bonds to be calkd, principally through 1998, interest on the advance '
]1 refunding bonds will be payable from Water System revenues. .,
The Water System's long-term debt consisted of the following (amounts in millions): , I m M Yem intem: Juw 30 June- 30.' W unnp H ates IW2 17M - 1992 2,17 - 12.6 % $ - $ .12 1993mI997 2.7% - 9.67 66 . 66' lo99 - 2002 11F- 7.8%. 78. 67 ' ; 2003 - 2007 5.1 W - 7.87 '87 70 2008-20l2 5.19 - 7.8% 97 74 2013 - 2n17 5.2% 7.8% ' 90 '65 2018 - 2022 6.4W ~ 7. 8'# 76 51 k 2023 - 2027 6.4W - ' 7.8"4 57 41
' 2028 - 2032 6. M 7.8 7 , _- -
37 13 , Total pnncipal amount ~588 ;439 - ,
.Unamoniztxl premiurn and discount (8) (7) long term debt due withm one year (13) (12)
Total long-term debt ~ $-567: .$ 430' t
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. No rt C - $HAREn OPERATING EXPl!N5fS~
'The Water System shares certain administrative ftmctions with the Department's Power System. Generally, . ;
the costs of these furictions are allocated on the basis of bene 6ts provided to the Systems. , I Operating expenses shared with the Power System were $295, $295 and $275 million for Gscal years 1992, 1991 and 1990, respectively, of which $89, $95 and $89 million were allocated to the Water System. N(rrt D - Gain ox Saa or LAND 00 POWER SYSTEM in 6 scal year 1992, the Water System realized a gain of $'10.6 million on sale ofland when it charged the Power System for its share of the estimated fair market value of the land used in building a joint ofTice facility.
'Nou E - Exeunn BtNrtrn Retirement, dhability and de.nh lxnept imurana plan - The Department has a (tmded ' contributory retirement, disability and death beneGt insurance plan covering substantially all ofits employees. Plan beneGts are gener-ally' based on years of service, age at retirement and the employees'. highest 12 consecutive months of salary before retiremem. The Department funds the retirement plan on an entry age normal method as determined -
by the plan's independent actuary. For funding purposes, prior service costs relating to the plan are amortized generally over a 30-year period ending June 30, 2003. Total 6 scal year. bene 6t plan cos'ts for the Water System include the following (amounts in millions): IW2 twl ltwo' Servite u>st $ 12 $ 12 $ 12 Intercsr udt. 51 47 40'
- Attual return on plan assets (62) (42) .(41)
Net arnortization and deferral 28- 11 14
' Net retirement plan cou 29 '28 25 Disabihty an.1 death benc6t plan costs and ;
administrative expenses 5 5: .i Total benefit plan costs ,
$ 34 $ 33 - $ 30; ,
Employee contributions to the plan totaled $5, $4 and $4 million during 1992,1991 and .1090, respece tively. Total covered payroll during 1992,1991 and 1990 was $120, $115 and $110 million, respectively. The following schedule reconciles the funded status of the plan with amounts reported in the financial- , statements (amounts in millions): )
. June 30, June 30 lW2 1991 ;
' AItuarial present value of trnefit obliptionv Vested benefits $ 609 '$ 531' Non-vestal benefits 'i 'I:
Accumulated trnefit obligation 610 532 Etiece of projettol future comgrnsatina leve! . 120 . 99 l Projected benc6t obhption 730 631' d Plan assets at hir value 597 Jo 1
- Projected benefit obliption in excess nfplan assets . 111
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133 Unrecognized prior service mst .
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Unrecognized net pin and effects of changes in assumptions (39) . (13) . j Unrnognizal net obliption atJuly 1,1987 beiitg recognized. ._ over !5 years .(72) - (80): ' Accrued pension liability $ 14 $ 18 h-
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The discount rate used in determining the piim's projected benefit obligation was 7.2596 and 8.0% in ] 1992 and 1991,irespectively. The assumed rate of increase in future compensation leveh was 6.0% in both - 1992 and 1991.' Tlie long-term rate of return on plan assets was 8.0% in both 1992 and 1991. Plan assets eonsist primarily of corporate and government bonds, common stocks, mortgage-backed securities and short- ']
. term investments. h a J L Ileahh om msti- The Depar: ment provides certain health care benefits to active employess. The cost to the
' Water System of providing such benefits to active employees amounted to $11, $9 and'$8 million for fiscal :
. years 1992,1991 and 1990, respectively. In addition, heahh care and life insurance are provi&d as postretire- -
ment benefits to retired employees and their dependents < The cost to'the Water System of pnwiding such benefits to retired employees amounted to $4, $3 and $3 million for fiscal years 1992,1991 and 1990, respec-tively, The costs of providing these benefits are accounted for on the pay-as-you-go-methocL In December 1990, the Financial Accounting Standards Ik>ard issued Statement of Financial Accounting . Standards No.- 106, " Employers' Account'ing for Postretirement Benefits Other Than PensionsL" The new ] statement requires systematic recognition of the costs of postretirement benefits over employees' service perimh. The Department is required to implement this statement no later than fiscal year 1994 and does not-expect adoption to inve a material effect on results of operations. Nou F -COMMrrurNTs AND CONTINGENCIES Pajuunts to t/u resmrfundof /be City - Under the provisions of the City Charter, the Water System transfers - funds at its discretion to the reserve ftmd of the City. The transfers may not be in excess of net _ income of the prior fiscal year. Such payments are not in lieu of taxes arid are recorded as distributions of retained income,
' The Department expects ni make payments of approximately $17.million in fiscal year 1993 from the Water System to the reserve fund of the City.
Litigation - A number of claims and suits are pending against the Department for alleged damages to per- . sons and property and for other alleged liabilities arising out ofits operations. In the opinion of managementi any ultimate liability.which may arise from these actions will not materially affect the Water System's finan-
'cial position as ofJune 30,1992.
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. REPORT O F. I N D E P E N D E N T A C C 5 U N T A N T S September 11,1992 To the Board of Water and Power Gimmissioners L Ilpartment of Water and Power
! City of Los Angeles in our opinion, the accompanying balance sheet and the related statements ofincome,- retained income reinvested in the business and of cash flows present fairly, in all material : respects, the financial position of the Water System of the Department of Water and Power-
- of the City of Los Angeles at June 30,1992 and 1991, and the results ofits operations and its cash flows for each of the three years in the period ended June 30,1992, in conformity _;
with generally accepted accounting principles. These financial statements are the responsi-I bility of the Department's management; our responsibihty is to express an opimon'on these. financial statements based on our audits. We conducted our auJlits of these statements'in acueda.,ce with generally accepted auditing; standards which require that .we plan and per . for.n the audit to obtain reasonable assurance about whether the financial statements are free 1 of meterial misstatement. An audit includes examining, on a test basis, evidence supporting .
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the amounts and disck>sures in the fmancial statements, assessing the accounting principles used and significant estimates made by management, a'nd evaluating the overall financial. statement oresentation. We believe that our audits provide a reasonable basis for the opinion 1 expressed ah>ve.- AA.NL
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& :' i Los Angeles, California d
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a 1 POWER SY$ TEM. l
$TATEMENT OF INCOME ;
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' Un Thue3o - Nrad-JJune 30 14N IW1 -NN I Oprating Revenues ;
Residencial $ 535,496 ' $ . 526,860 $ $19,339 Commercial and industrial 1,231,568 . 1,216,6M 1,251,296 Other 62,011 _68,43i 79,258 , Total opruing revenues 1,829,075 1,811,955 J,8 j9,893 , , . Operating Expenses ' l Fuel fbr generation .216,048- 211,127 -247,592 - ? Punhased power- ' 660,345' 664,389 . M 7,385 Other operating er}enses 431,126 412,556 :392,202 Maintenance 165,257 163,910 ,168,481 Depreciation 157,866 152,190 _j39pj31) Total operating expenses 1,633,M2 1,604,17j ],11,89-Operating Income 195A33 - 207,783 255,002 -
.f Other Income and Expenses, Net 23,578 18,157 , 15,835 Income belbre debt expenses 219.011 225/110 271.837 Debt Expenses . .
Interest on debt 156,543 136,156- 118,128
. Allowance for funds used during mmtruction. (l1,692): ((Al p) . (2,757)
Total debt expenses 144,851 130,013 .I15',371- ; Net income $ 74,160- $ 95,927' $ 1156.466 - ; S T ATEME NT OF RETAINED I N C O M E R E I N V E S T E D' I N. T H E ' B U S I N E S S Un NmM We emledjune 30 IW2 'IW1 iWoc llalance at beginning of year - $ 1,974,709 $ 1,971,276 . $ 1,90d,62H Net income for the year 74,160 95,927 '156,466 , 2,018,869 . 2,067,203 2.057,091 -' Less
- Payments to :he reserve fund of the City _ 90,597, 92A94 - 85,818
'-Ilaldnce d end of year S1,958.272 $ 1,974,709 - $ 1,971,276 -
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POWER SYSTEM B AL ANCE SHE ET i
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> Un huanhi June 30 1992 '1991 ASSETS ,
Utility Plant, at original cost Pnxluction $ 1,872,843 - $ 1,850,965 - Transmission 712,470 680A92 ' Distribution 2,584,714' 2A04A79 : General 546,154 446,484. 5,716,1S1 . 5,382,420 < r,
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Less - Accumulated depreciation 1,790,020 . 1,688,976 ~ l 3,926,161 13,693,444.- _- Construction work in progress . 356,913 278,947?- '4 Nudear fuel, at amortized cost 12,388 : -14,802 > Net utility plant 4,295,462 3,987,193-Current Assets Cash and investments 226,928 237,663-Customer and other accounts receivable, less
$7,800 and $3,600 allowan e for losses 201,288 '179,038- s
. Receivable from Intermountain Power Agency 593 24,634 :.
Aurued unbilled revenue 100,280 191,981-Materials and supplies, at average cost 113,373 ;115,216? r Fuelinventory . 99,950 .107,226 L Prepayments and other current assets 17,057 -16,8946 J Total current assets 762A69 772,652-Total utility plant'and assets ~ $ 5.057,931. L$ 4,759,845 CAPITALIZATION AND LIAlllLITIES Capicdiation Equity iterained intorne reinvested in the business $ 1,958,272 $ - 1,974,7094 Contributions in aid of construction 161,272 ' 141,823': 2,119,544_ ' 2,116.532 = 1.ong-term debt 2,333,803' 2,091,020-Total capitalization 4A53,347 4,207,552 . Current liabilities . Long-term' debt due within one year 55,655. ;55,050' ,
. Revenne certificates piyable .90,000- ~90,000 Accrued interest 49,357 -38,606:
Accounts payable and accrued expenses . 229,939 214,259 - '. Due to Water $> stem '14,200 i 'i Over recoverni energy costs 61A61 50,319 : . Extension and other deposits ' 8,572 L 9,255 ' Deferred credit - Intermountain Power Agency 95,397i 94,804-Total current liabilities - 604,584 552,293 ' Commitments and Contingencies Total capitalization and liabilities - $ 3,057,931 : J $ 4,759,845 1 -
' % .smfnyng man en a imgr.dpart of sksepeawe.d uarmurl P
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, y P'O W E R S Y S T E M S T'A T E M E N T O F CA5H FLOW 5
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OE Th,uarwk) Yat en&djmw Kr 1992 1991 1990 Cash Flows From Operating Activities: s Net income $ 74,16O $. 95,927 : a 156,466 S
' Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 157,866. 152,190 139,031-Arnortization of nuclear fuel 8,247 10,567 .3,258 . Allowance for funds used during construction (1.1,692) (6,143) -(2,757) Proviuon for losses on customer and other accounts receivable 15,871 9,492 9,891.- ; Changes m current assets and liabilities: .. .. Customer and other accounts receivable ( ll.12 I) - (1,288) (28,049) Rncivable from Intermountain Power Agency 24,0 il 39,922 (14,983) Accrued unbilled revenue 'E,299) - 17,930 .'(15,335) ; - l Mareriah and supplies 1,843- (10,153) l (20,002) : . Fuel inventory 7,276 .(47,888) 1,383 d Prepayments and other current assets (163) (1,373) '12.142' d Accrued interest 10,751 5,537' (3,457) . Accounts payable and accrued expenses 15,680 (299)' - (1,599) Due from/to Water System 14,200' (16,972) (4,907) - Over-recovered energy costs 11,145 30,947 - (28,315) ' , Extenuon and other deposits (683)' - (6,$30) 1,877 Deft cred credit - Intermountain Power Agency 593 30,248 -14,983-Nn cash provided by operating ac civities 279,7I5 302,114- 219,627. Cash Flows From Financing Activities: .. ..
. Sale of revenue' bonds 297,497 346,673: : 247,929 L ,
Sale of advance refunding bonds L 158,721 ' -~ 85,216I >
'l Amount reuival from escrow account -- .38,007 -
Contributions in aid of construction 19,449 6,610 12,1 2 Reduction of long-term debt (54,109). (51,733) (5l E S)^ 't
' Amount depmited in escrow accounts and offset against .
advance refunding bonds (158,721) .
- (85,216)' l I.ong-term debt re&emed, including call premium - L (38,007) .
;- g
- Payments to the reserve fund of the Chu . (90,597) (92,494) (85,818)
. Net cash provided by fmancing activities 172,240 jo9,056 E123,085 '
L Cash Flows From Investing Activities: 1 Additions to plant and equipment, net _( 462,690) 0 99,013) G60,389):
- Cssh and investments:
Net increne (decrease) (10,735) 112,157- (17,677) Ileginning of year 237,663 125,506 143,183 , y End of year . $. 226.928 $ 87,663 1
$ 125,506 j
,q
;1 Supplemental disclosure of cash flow information:
- Cash paid during the year for interest - $ '144,788. -$ 136,656 $ 126,236 '
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. POWER SYSTEM N O T E S T O ' P I N A N C I A L S T A T 'E M E N T S .
Nun: A - SmMAinaw SrNaicwr AccouNmo Porras The D@artment - The Department of Water and Power of the City of Los Angeles exists under and by virtue of the City Charter enacted in 1925 as a separate pmprietary agency of the City. The Power System is respon-sible for the generation, transmission and distribution of electric power for sale in the City.. > Utilio plant - The costs of additions to utility plant and replacements of retired units of pmperty are capital. ized. Costs indude labori materials and alh>cated indirect charges such as engineering, supervision, trans - portation and construction equipment, retirement plan contributions, and certain administrative and general expenses. The costs of repairs and minor replacements are charged to appropriate maintenance accounts. The - original mst of property retired, plus removal cost, less salvage, is charged to accumulated depreciation. Dfruiation - Ikpret iation expense is computed by the straight-line method for all major projects comt kleted . [ after July 1,1973 and for all office and shop structures, related furniture and equipment, and transportation - , and mostruction equipment. Depreciation for facilities completed prior to this date is computed by the W sinking fund method based on estimated service lives. Estimated service lives range from 10 to 70 years. Depreciation provision as a percentage of average depreciable utility plant in service was 3.2% 3.2% and : 3 3.1% fbr fiscal years 1992,1991 and 1990, respectively. , , Nudar Dca,mwissioning - Decommissioning of the Palo Verde Nuclear Generating Station, in which the Power System has an ownership interest, is projected to start sometime after 2022._ Based upon a study perf formed by an independent engineering firm, the Department's share of the estimated decommi'ssioning costs: is $41 million in 1989 dollars. Decommissioning costs are charged as part of depreciation expense over the life of the nuclear power plant. A Nuclear Decommissioning Fund has been established and the Power . System is setting aside funds lbr its share of estimated future decommissioning costs. Nudcarfud - Nudear fuel is amortized and charged to Fuel (br Generation on the basis of actual thermal energy produced relative to total thermal energy expected to be produced over the life of the fuel. Under the ? provisions of the Nudear Waste Policy Act of 1982, the federal government assumN responsibility for the future disposal of spent nudear fuel. Cash andintuimen/r - The Department's cash is deposited with the City Treasurer who invests the funils in securities under the City Treasurer's pooled investment program. T U nder the program, available funds cif thel ; City and its independent operating departments are invested on a combined basis. These investments are val-ued at cost, which approximates market. At June 30,1992 and 1991, cash and investments include $28 and '
.$20 million, respectively, of restricted balances relating to bond redemption and interest fimds, self-insurance
- ftmd and nuclear demmmissioning fund. In addition, cash and investments at Jime 30,1992 fand 1991 :
'indudes $95 and $70 million, respectively, relating to the energy cost adjustment stabilization account. jThei -
Department considers all cash investments with' a mrtunty of three months or less ai be'c' ash equivalents. f, Fud innntor> - Coal inventories are stated at average cost. Fuel oil inventories are stated at cast, using the last-in, first-out method. t Contri/mtions 'in aid of omeruaion- Under the pmvisions of the City Charter, amounts received from cus-tomers and others for constructing utility plant are combined with retained income reitwested in the business l. y I'
1 1
'l; to represent equity for purposes of unmputing the Power System's lx>rrowing limits. Accordingly, contribu-tions in aid of construction are shown in the accompanying balance sheet as an equity account and are not off-set against utility plant.
Rmnua - Revenues tonsist of bil;ings to customers for consumption of electric energy and indude amounts , asulting from ari energy cost adjustment formula designed to permit the full recovery of energy costs plus funding requirements of nuclear plant decommissioning costs. The Department projects these costs to estab-- lish the energy u>st recmery component of c ustomer billings and any ditTerence between billed and actual wsts, resulting in over- or under-recovery of energy costs, is adjumd in subsequent billings. The Power System rnognizes energy u>sts in the period incurred and accrues for estimated energy sold but - not yet billed. l The Power System's rates are established by a rate ordinance which is approved by the City Council. The Power System sells electric energy to other Departments of the City at rates provided in the ordinance. IAbt nAnsa - Debt premium, discount and issue expenses are defermd and amortized to expense over the lives of the related is ucs. AHowana p>rfans aiedduring osutraaion iAHiDC)- AFUDC represents the cost of borrowed funds used for the wnstruction of utility plant Capitalized AFUDC is shown as part of the wst of utility plant and as a - , reduc tion of debt expenses. The average AFUDC rates were 7.27,7.2% and 7.7% lbr fiscal years 1992, 1991 and 1990, respectively. Rw/amfication - Certain financial statement items for fiscal years 1991 and 1990 have been reclassified to conform to the 1992 presentation. Nou B -- im i rsAnu axo Du auao Cuorr - INWlOUN WN POMR /wtNW As ofjuly 1,1988, an amendment to an Intermountain Power Agency (IPA) bond resolution provided for the use of surpius construuion timds from the Intermountain Power Project. As a member participant of this 4 project, the Department's share of such surplus funds totaled $155 million through June 30,1992, of which
$ I 5 4 million was collected from IPA and $.6 million remained as a receivable.
hi fiscal 1989,$60 million of such surplus funds were used as an offset against the purchased power expense. Pursuant to a City Ordinance ofJanuary 2,1991, the Department established an energy cost adjust-ment stabilization account in which the $95 million balance of the IPA surplus funds are accumulated. At the discretion of the Departmeut's Chief Acwunting Employee, funds may be transferred from this account to stabilize the effect of future purchased power expense on customer billings over a period not to exceed seven years from the time the funds are received. 1 NmrC pa uv4 h u n U nu n~ PL ANT
.The Power System has undivided interests in several electrical generating stations and transmission systems which are jointly-owned with other utilities. Each project participant is resrxinsible for financing its share of' construction and operating costs. The Ibilowing schedule shows the Power System's investment in each jointly-owned utiliry plant as induded in the balance sheet at June 30,1992 (dollar amounts in millionst E
r , i . m v .J 1 Share d Plane jn Sen ke . Ownenhip capadry ~ Acwmulacd Work in Proira invereu - Onegawato Gar tkpmianon Pnigress Pato Verde Nudear Generaring , Station (Note iO 17% 217 --$ .498 $ .65' $ 15-Navaju Steam Generating _ _ _ i! 5tation 21.2 7 477 188 88 :3 Mohave Cru! Generating Station 20.09 316~ 91 37 3 Padfic Interric DC Transmisdon System 4(i,01 800 177 23 4 5 Other transminion systems Vanous <6 .. 19 1
$ t.034 $~232 $ 26 The Power System will mcur certam mirumum operatmg costs on the jointly-owned facilities, regardless of L y the amount of energy generated or its ability to take delivery ofits share of energy generated. The proportion-ate share of these expenses is included in the appropriate categories of operating expenses. O Non D - R t vist:r CurrnicAus At June 30.1992 and 1991, the average interest rate of revenue certificates payable was 2.8% and 4.296 wich' g various maturities of up to 120 and 150 days, respectively. j Norr E-LoNcurnm Dart >
Long-term debt outstanding at June. 30,1992, consisted of revenue bonds due serially.inivarying annual
; amounts through 2032. Interest rates, which vary among individual maturities, averaged approximately; 6.696 'and 6.8% at June 30,1992 and 1991 respeuively. The revenue lmnds generally'are callable ten years .y after issuance. Scheduled annual principal maturities during the five years succeeding June 30,1992 are $56, .
$57, $58, $62 and $65 million, respectiwly. Revenue bonds are secured by the future revenues of the Power System. The Department has agreed to certain covenants with respect to bonded indebtednessiincluding the L requirement that the Power System's net income, as defined,-will be sufficient to pay certain amounts _of future annual innd interest and of future annual aggregate bond interest and principal maturities. '
'In fiscal year 1992, the Power System sold advance refunding bonds _ totaling; $160 millioniwhich decreased its aggregate debt service payments by $42 million over the next 36 years and resulted in an ecom nomic gain (difference between the present. value of the old and new debt service payments) of $17 million.
h The Power System also sold advance refunding bonds in prior years." The proceeds of the advance refunding bonds were placed in irrevocable trusts and will be used to redeem bonds currently included within long-term debt at scheduled call dates. Untili he t bonds to be refunded are called,: interest on the. advance refunding bonds is payable from interest earned on securities of the United States government purchased out of se pro? q
.ceeds ofh t e s.des and held in bank escrow accounts. At June 30,1992, $256 million of these escrow accounts-have been ofTset against the advance refunding bonds in the accompatiying balance sheer. JAfter the monies in :
~
the escrow accounts are applied to redeem bonds to be called, principally through 1998,' interest lon the' advance refimding bonds will be payable from Power System revenues. 1 t
- The. Power System's longi t erm debt consisted of the following (amounts in millions):
h al Yean Internt June 30, . June 30, Naturing Racn tw2 1WI 1992 '2.2% - LOA % -$
$ $5 1993-1997 3.07
- 10.4% 298 298.
'I998 - 2002 4.0% ~ H.0% -355 334' 2003-2007 4.9% ~ H0% 385 350 2008 - 2012.- 4.9% - 8.07 414 370-20!3-- 2017 5.2'1 - 8.09 343 293 2018 - 2022 5.57 - 80% 260 209 202-3-2027 6 4% - 8.07 221- 170 2028-20)2 6.4 % - 7XX 137 85 Total prmcipal amount 2A13 2,164 Unamortized premium and discount (23) 0 8) ..
Long. term debt due within one year (56) (55) ! Total long-term debt $ 2,334 $ 2,0911 Nurr F - Snan o OHR ATING ExetNus ; The Power System shares certain administrative functions with the Department's Water System. Generally, 3 the costs of these functions are alkicated on the basis of benefits provided to the Systems. . r Operating expenses shared with the Water System were $295, $295 and $275 million for fiscal years 1992, 1991 and 1990, respe tively, of which $206, $200 and $186 million were alkicated to the Power System. t nan G u- ENPunn ikNEffr5 Rctiumcut, diubility and de.nh lemfit inwrance plan - The Department has a' funded contributory retirement, , disability and death benefit insurance plan covering substantially all ofits employees. .' Plan benefits are gener- ,
. ally based on years of service, age at retirement and the employees' highest 12 consecutive months of salary.
before rerirement The Department funds the retirement plan on an entry age normal method as determined
. by the plads independent actuary. For funding purposes, prior service costs relating to the plan are amortized :
generally over a 30-year period ending June 30, 2003.. Tbtal fiscal year benefit plan costs for the Power System include the following (amounts in millions):
.tw2 - 1wl two i
Sersice cost $ 38 $ 48 - $ 36
'interesc ont -161 148 127 Actua! n turn on plan assets (195) . (131) .(130) :
Net amortization and dderral 87 34 43-Net retirement plan cost 91 86- 76'
. Disability and death bendit plan costs and
- admimstrativt exle. ses 14 13 13 Tor.d benefit pt.. costs $105 $ -99 $ 89
_ Employee contributions to the plan totaled $16, $12 and $11 million during 1992,1991 and'1990, ' c respectively. Total covered payroll during 1992,1991 and 1990 was $380, $360 and $350 million, respec-tively.' ,
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a The following schedule reconciles the ftoded status of the plan with amounts reported in the fmancial , statements (amounts in millions):
~ June 30, June 30, 1992 .1991 y Acnunal present value cf benefit oblif4tions:
Vested bene 6ts $ 1,930 $1,683 Non-vested lenents ! 1 Accumulated bene 6t obligation 1,931 1,681 EfTeu of projeued future compensarion level 380 _ '313-Projeted benent obligation - 2,311 1,997 Plan assets at fair value 1,890 1.645 Projected bene 6t obligation in excess of plan assets 4 11 352 Unrecognized prior service sost - 122) - Unmognized att gain and effects oichanges m assumptions (125) ( 40). 6 Unterognixed net obligation atJuly 1,1987 twing recognind , over 15 rean J,D . (253) , Accrued pension liabdity $ 41 $ 59 The discount rate used in determining the plan's projected benellt obligation was 7.25% and 8.0% in; l [ 1992 and 1991, respectively. The assumed rate ofincrease in future compensation levels.was.6.0% in both j' 1992 and 1991. The long-term rate of return on plan assets was 8.0% in both 1992 and 1991. Plan assets
- consist primarily of corporate and government bonds, common stocks, mortgage-backed securities and short.
- .;
1: term investments. 1
- lic.dth rare aun -The Department pmvides certain health care benefits to active employees. The cost to the l Power System of providing such benefits to active employees amounted to_$33, $29 and $24 million for fiscal - ,
i ye:ars 1992,1991 and 1990, respectively. In addition, health care and life insurance are provided as postretire ' ment benefits to retired employees and their dependents, The cost to the Power System of pmviding such I' benefits to retired employees amounted to $13, $11 and $9 million for fiscal years 1992,1991 and '1990, respectively. The tosts of providing these benefits are accounted for on the pay-as-you-go-method.1 In December 19fX), the Financial Accounting Standards Board issoed Statement of Financial Accounting .: !: Standards No.106, " Employers' Accounting for Postretirement 13enefits Other Than Pensions " The new
- statement requires systematic recogmtion of the costs of postretirement benefits over employees' service perials. The Department is required to implement this statement no later than fiscal year 1994 and does not j
!' - expect adoption to have a material effect on results of operations. I Nun H - CouMrrurAn ANo CmmNutscu,s > F Payments to the mmefund ofele City - Under the provisions of the City Charter, the Power System transfers - funds at its discretion to the reserve fund of the City. The transfers may not be in excess of nedocome of the prior fiscal year. Such payments are not in lieu of taxes and are recorded as distributions of rerdned income; , }.
- The Department expects to make payments of approximately $74 million in fiscal year 1993 from the Poiver -
-System to the reserve fund of the City.
{-
- ling-tan purdusedp&urr and transmission contraas - The Department has entered into a number of energy and transmission service contracts which involve substantial commitments. These include' an agreement with the
- 2. Intermountain Power Agency, a Utah State Agency, for purchase of energy from the intermountain PowWr?
4 i ( b w
.. Project (IPP) for which the Power System has served as the project manager and operating agent. The De[wrtment's total interest in IPP includes a M6% "take or pay" obligation and an excess power contract for 18.2% for a total of 62.8%. The Department also has two 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 Nudear Generating Station and for 59.5% of the capacity of the Southern Transmission System, which transmits energy from IPP in Utah to Southern California. Signi6 cant data retar-ed to these agreements, which are scheduled to expire from 2022 to 2027, at June 30,1992 are as follows:
Tuul 1%k ikpmmem outsundmg Shm uf faputy (mdhong (megnatto Psio Wrde Nudear Generating Suoon uhrough SCPPA) $ 1,030 t$1 lotermounum Power Pro}ct t 4,938 l .0N Southern Tramnmuon System (for IPP power through SCPPA) 1.057 1,142 i All these agreements ruluire the Power System to make certain minimum payments, which are based upon debt service requirements. While these payments are 6xed charges (of approximately $340 million in each of the next five years), the Department is also required to pay additional amounts (of approximately $140 mil-lion in each of the next five years) thr operating and maintenance cc>sts related to actual deliveries of energy
. under these agreements. ~1btal payments under these contracts were approximately $510 miWion, $450 mil- .i lion and $530 million m 6 scal years 1992,1991 and 199C, respectively. These aggregate purchased power costs are recovered through the energy cost recovery component of customer billings.
The Department also has a contract through 2017 with the U.S. Department of Energy fbr the purchase of available energy generated at the Hoover Power Plant. The Department's share of capacity at Hmver is approximately 500 megawatts. Nudcarins/mun - As a participant in the Palo Verde Nudear 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. Enrimununt.d nutters - Numerous environmental laws and regulations atTect the Power System's facilities and operations. Pursuant to recently amended regulations of the South Coast Air Quality Management District in Southern California, the Power System may be required to burn natural gas to the extent available,instead of fuel oil, and is committed to step down yearly the emission limits ofits four steam generating stations in the. Los Angeles Basin until the final limit is reached in the year 2000. The stations' boilers will likely be either q repowered as combined cycles or retro 6tted with NOx control systems that will reduce nitmus oxide emis- .j 1 sions. The estimated capital cost of the retro 6tting program, which will peak in the mid 1990s, is approxi- 'l mately $260 million. In addition, construction is in process to repower the llarbor Generating Station for an j estimated cost of approximately $170 million and the Valley Generating Station may be repowered beginning ' in 1997_ for an estimated cost of appmximately $340 million. The above estimates are in 1992. dollars and . may change as the requirements for use of future state-of-the-art technology are developed; Litigation - A number of claims and suits are pending against the Department for alleged damages to per-sons and property and for other alleged liabilities arising out ofits operations. In the opinion of management, any ultimate liability which may arise from these actions will not materially affect the Power System's finan . cial position as ofJune 30,1992.
i
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h REPORT OF INDEPENDENT ACCOUNTANT 5' l I September 11,1992 To the Ikaard of Water and Power Commissioners Department of Water and Power ; City ofIns Angeles a In our opinion, the accompanying balance sheet and the related statements of income, retained income reinvested in the business and of cash flows present fairly, in all . material , respects, the Gnancial position of the Power System of the Department of Water and Power of the City ofIms Angeles at June 30,1992 and 1991, and the results ofits operations and its cash Dows for each of the three years in the period ended June 30,1992, in conformity . -[ with generally accepted accounting principles. These Snancial statements are the responsi-- bility of the Department's management; our responsibilits si to express an opinion on these-financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that' we plan and per-
-)
fonn the audit tc obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accountmg pnnciples : used and significant estimates made by ' management,'and evaluating the overall' financial ' statement presentation. We believe that our audits provide a -sonable basis for the opinion expressed above. ;
]
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.los Angeles, California .
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a ii s I W ATER.5YSTEM-5 ELECTED FIN ANCI AL DATA AND ST ATISTICS;
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i us athismi 't w2 ' twi . Iwo 1989. .1988 - - r;
' Staternent of. Income - ;
' Operating revenues . ;
a Residential .$ 122.1 $ l'19.2 $ .125.5. $ 110.1 $- 94.5 Commercial and industrial '183.3- 189.5 .191.2 166.5 112A , Governmental aral odier 18.7 20 2 19.5 17.8 ~ 14.3 , , 4 l Fire hydratus 4.9 4.8 - 4.5 .4A 4.1 - Miscellaneous 13.2 14.0 - 7.5 - 1A 1.7 ' Tocai revenues $ 342 2 $ 347.7 S ' 348.2 $ ~ 300.2 $ 257.0: 4 4 Operating income 66A 57.6 82.5 61.4 ' 54 1 As % of revenues 1949 16.6 % 23.7 4 20.5 % 21.1 7 , r Net income - $ $ 1.6 $ 40.0 .5 62.6 $ 42.3 $ 34A llalance Sheet - b Net utility plant $ 15663
, $ 1,426.1 $ 1,282.1 . $ 1,202.1 $ 1,114.7 - ^e Capical additions, net 175.8 178.7 113.1 118.1 .97.8 Capitalization .
Equity 1,0 14.8 991.2 951.9 870.6 . 822.3 Long-term debt 566.8 430.3 367.5 379.7 350 2 - Total capitalization ,1.611.6 1,421.5 1.319A 1,250.3 1,172.5 Debt as 7 of net utility plant'^* 36.2 7 . 30.29 28.7 % 31.6% - 30.294-Interest on debt - 37.3 29.1 . 28.6 - 27.6 23.7 ;
. Payments 'to City of LA. 17.4 17A 15.0 12.9- r12A
. Operations -
-208.8.
Gallons sold (billions) .166.6 188A 208.1 ~ 203.6 - Customers .- average number (thousands) . 617,9 = 646.9 643 4 - M O.6 ' 637.8 d Average revenue per hundred cu. fr. sold din (ents) . . Residential 154 H 130.7 119.0- 106.0. 92.8 , Commercial and industrial : 141.5- _ 134.2 124.2- 107.9 . 93.6 Water supply (billions of gallons) local supply . 30.5 29.8 30.6' 44A- 39.5 ' i DWP Aqueduct - 57.5 40.5 1 67.1 106.6 134.9 : Metropolitan Water Distrat 95.1 .130.H 128.7 75;3 ~ 149.'l . , L Gross supply 183.1 201.1 226A 226.3 223.5 - Diversion from (to) local storage (1.2) . 0.3 0.() - DA- (0.1) - ., Net supply to distribution systems 181.9 20)A- 226A - 226.7 ^ 223.4 a { Al Ladado menne ne andaJeame erfunkng mruse kek ; I
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POWER SYSTEM SELECTED FIN A N CI A L DJ T A AND ST ATISTICS
+
($ %1tm) 17R 1911 1990 1989 l'JM 5tatement of locome - Ojwrating revenues .
. l Residential $ 535.5 $ 526.9 $ 519.3 $ 484.6 $. 430.7 . ,
Commercial and industrial 1,231,6 1.216.6 1,251.3' 1,162.0 1,085.5 - Street lighting arxl other 38.3 42.5 $4.5 53.5 39.7 - Miuellaneous 23.7 25.9 24.8 16.2 14.1 ,
. Total revenues $ 1,829.1 $ L,811.9 $ 1,849.9 $ 1,716.3 $ 1,570.0 l Operating income 195A 207.8 255.0 278.2 -254.3-
'As 'Y of revenues 10.7 9 11.5 9 13.8'V 1(3.27. 16.2 % ,
Net income $ 74.2 $ 95.9 '$ 156.5' $ 193A $ .175.6 llalance Sheet Net utility plant $ 4,295.5 $ 3,987.2 - $ 3,74 4.8 $ 3,523.9 $ 3,324.9. Capital additions, net 462.7 399.0 360A 336.2- 317.3 Capitalization . Equity 2,119.5 2,116.5 2,106.5 2,023.7 1,890.5 Long-term debt 2,333.8 2,091.0 1,797.9 1,602A 1,554.2 Total capitalization 4d53.3 4.207.5 3,904A 3,626.1' 3,444.7 . Debt as W of net utility plant'^' 54.39 52A% 4H.0% 45,5 % 46.7% - Interest on debt 156.5 136.2 118.1 110.3, ' 102A Payments to City of L A. 90.6 92.5 85.8 78.5 ' 70.2 : .
-Operations l - Kilowatt hours sold (billions). 21.7 21.9 21.8 21.9 21'. I '
Customers - average number (thousands) 1,362.8 1.361.2 1,344.6 1,325.3 'l.304.6 Average revenue per kwh sold (in cents) Residential 9.0 8.7 H.9. 8.2 .-7.7 Commercial and indmtrial 8.1 H.0 8.3 7.7 7_.3 Energy pnduaion(billion kwh) . Hydm -' l4 . 1. 3 1A 1.8 1.8 Thermal ._ 22.0 20.3 22.0 ' 20.8'* 21.0'BE Total generation 23A 21.6 23A 22.6' 22.8-Pun hases 1.8 3.7 - 1.9 2.9'"' l .7d " , Total pnduction 25.2 25.3 25.3 25.5- 24.5 s Net system capability (thousand megawatts') Ilydro -1 A 1A 'lA 1A. IA.
- Oil and gu owned 3.0 3.2 3.1 3.1 3.1 l 4.4 4.6 4.5 4.5 - 4.5 )
Jointly-ow- d and firm purchases ' 3.1 ' 2.9 ,___ 2 9 2.8' 2.8 - 7.5 7.5 '. 4 7.3'- 73 ;
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l h>r additional topies contact: Public Affairs Division Rmm 1514 Post Ofike liox i11 Im Angeles.CA WHM L Telephone (213)481-6111 . Printo.1 on recycled paper G
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CITY OF Los ANG El.E s BO A R D OF WATE R AND Powr a COMMISSIONE RS t r l 1 L 4 I i l i I k I;s Angles Department of Water and Power - d General Odice fluilding 111 North flope Streer los Angeles, California 90012 Telephone (213) 481-4211 SM/th
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