LADWP renewable audit

An audit of the Los Angeles Department of Water and Power says the department achieved a renewable energy standard but did not have a strategy on how to pay for the fuels.

The 69-page audit found that LADWP, the largest municipally-owned power provider in the U.S., tracked its drive to meet a goal of having 20 percent of the city’s power come from renewable sources by 2010 but did not clearly track program costs, which were ultimately absorbed by customers.

“While the DWP’s unaudited numbers state that they achieved the goal of 20 percent renewableenergy by 2010, it appears that this was likely due more to luck than to strong planning and policies,” City Controller Wendy Greuel was quoted as saying by the Los Angeles Times. “Our auditors estimate that the DWP only achieved a 20 percent renewable energy portfolio due to abnormally cool temperatures and higher than expected wind at department-owned wind farms.”

The utility’s long-range strategy for renewable energy was disrupted last year when ratepayers rebelled against a package of rate hikes.

LADWP suspended decisions on securing more renewable power after a battle between it and the city council over requested rate hikes. State regulators are expected to require LADWP to obtain one-third of its power from renewable sources by 2020.

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