Council OKs ‘Green Power’ Utility Plan

In a move toward preparing the city’s utility for the competitive energy market, the Los Angeles City Council on Wednesday approved a new environmentally friendly energy program for Department of Water and Power customers.

The so-called green power program will allow DWP customers, for a fee, to purchase a portion of their electricity from clean, renewable energy sources. Similar programs will also be available from other energy companies that will be competing with the DWP, city officials said.

As a result, proponents say the DWP’s move will allow it to keep pace with its competition while also assisting the region’s environmental health.

“We hope to bring to our customers a combination of cleaner energy and conservation measures . . . while we move toward a cleaner energy base in the future,” DWP General Manager S. David Freeman told the council. “We have in this basin probably the best combination of good sun, rather poor air and relatively high electric rates. . . . [Green power] could flourish here.”

Some consumer groups, including Ralph Nader’s Public Citizen, however, have said green power programs in California are a hoax and that the money raised goes more toward marketing and advertising than to energy-efficient programs. They also say that fewer customers will opt for the program and that utilities are merely offering repackaged versions of energy programs that are already available.

DWP officials strongly dispute those charges, saying that their approach is solid and financially responsible. They say further that the city has 34 bids from companies seeking to build facilities here but that the city won’t enter into any negotiations until it has the customer base to support it.

“We’re going to lead this green revolution,” Freeman said.

Under energy deregulation, California consumers are now allowed to pay extra for electricity generated by such renewable resources as the sun, wind, steam and biomass, as opposed to gas or coal, which generate most of the state’s electricity.

Although it might be a bit more expensive in Los Angeles--about 6% more--the costs are expected to be offset by allowing homeowners to participate in such special energy efficiency programs as free compact fluorescent lightbulbs, home energy efficiency analyses and discounts on energy-conserving appliances, products and services.

Based on the purchase of 20% green power on a residential energy bill, the cost would be about $3 for each $50 of electricity, the DWP estimates.

City Councilwoman Ruth Galanter, who heads the council committee that oversees the DWP, enthusiastically endorsed the program, saying that it has many important potential environmental and economic benefits for the city.

And she said it could also help directly and indirectly to clean up the air in Southern California.

To that end, Freeman said: “I want to make it so that I can see the Hollywood sign every day and not just a couple days a year.”

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Times staff writer Jim Newton contributed to this story.