Bleeding the DWP to Pay Others Won’t Work

It was discouraging to read the informative articles by Leon Furgatch (Feb. 21) and Scott Harris (March 2), both of which reported facts concerning the Los Angeles City Council’s and the mayor’s appointed Department of Water & Power commissioners’ actions in bleeding the department to pay expenses in other city departments.

Some previous articles published by The Times have placed the responsibility for water and power rates on Department of Water & Power management. The department’s management does not set the rates. Furgatch points out that the rates are fixed by the City Council as approved by the water and power commissioners. The city takes 5% of the gross income of the department to supplement the city treasury. Thus the higher the water and electrical rates, the greater the income for the support of the other city departments.

It should be emphasized that the city takes 5% of the gross income of the department, not the net. Many customers may not be aware of this fee, which is a form of utility tax. Furgatch points out that in 1994 this fee amounted to $122 million. During years of good economy it has been much higher.

In addition, water and power bills also include the Los Angeles city sewer fee. The department does not operate the sewer system. It only assumes the responsibility for the collection of the fee, an expense that drains money needed for maintenance of water and electrical systems.

As Furgatch states, continued bleeding will bankrupt a department which has for years been one of the most reliable and progressive in the United States.

Recently, another aspect of the bleeding surfaced. Water and power commissioners voted to pay $13.5 million a year to a consulting firm to advise the department management. This boondoggle will be paid by rate-paying customers.

SAMUEL W. NAY

Glendale