Wednesday, October 13, 2004

LADWP: Out of Control

Financial management at the Los Angeles Department of Water and Power is out of control:

The Department of Water and Power's managerial troubles mounted Tuesday when Los Angeles officials disclosed that the utility paid $10 million -- twice the purchase price -- to make functional the Pasadena building where it set up a temporary water lab.

The disclosure came as the DWP's massive rate hike faces a legal challenge and on the same day that the board overseeing the DWP voted to accept a settlement of $4.7 million for construction defects in its $70 million Sun Valley water-testing facility that became mold-infected, allegedly causing illness to dozens of employees.

Ratepayers in Los Angeles--not management at DWP or elected officials scared to admit error--are the ones who ultimately pay the price for mistakes like these.