L.A. to Retain 10% Stake in Power Station

Despite concern about owning a heavy polluter, the Los Angeles City Council agreed Tuesday to back out of a deal to sell all of its interest in the coal-burning Mohave electrical generating station, deciding instead to retain a 10% share.

Department of Water and Power General Manager David Wiggs said the city has enough power to meet demand, but said he believes it is prudent to retain an interest in Mohave as a hedge against changes in the energy market.

“If we don’t have this 150 megawatts [from Mohave], nobody here is trying to suggest to you we can’t keep lights on, but it does increase our risk of having to replace that power at a higher cost,” Wiggs said.

Although some council members said the city has a moral responsibility to divest itself of the Nevada plant because it is a major cause of pollution in the Grand Canyon region, others argued that it does not make sense to sell an inexpensive source of electricity at a time of energy uncertainty.

“I still feel at this point it’s a very unreliable power market and it would be wrong at this point to lose any power we might have,” said Councilwoman Janice Hahn.

In the end, the vote was 10 to 3 to sell a 10% interest in the plant but retain another 10%, with council members Ruth Galanter, Eric Garcetti and Nate Holden in opposition.