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L.A. solar plan called very risky

An outside consultant says Measure B, which easily made the ballot, is more costly than portrayed by DWP.

December 19, 2008|David Zahniser

"That's the problem with City Hall," said former DWP Commission President Nick Patsaouras, who opposes Measure B and is running for city controller. "They think the average taxpayer is not smart enough to tell them the truth."

In a Nov. 4 e-mail obtained by The Times, Miller told Garcetti that he entered into a "quick contract with a very reputable firm" to study the solar plan at Garcetti's request. He offered to keep the analysis from other council members even as he complained that DWP officials had failed to do their own thorough analysis of the measure. "It concerns me greatly that the department did not come forward with this information themselves," Miller wrote. "It would have been as available to them as it was to me."


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Miller later concluded: "Since this request came directly from you, I am not sharing this with [Councilwoman] Wendy [Greuel] or the other members until you clear it."

Garcetti said he later gave Miller permission to give the findings to other council members -- and would not have voted to place the measure on the ballot if he thought the findings were accurate.

Still, Councilman Bernard C. Parks, who heads the council's Budget and Finance Committee, said he never received the findings -- and wished that he had.

"If this is accurate information, or at least a point of view, the council should get the chance to ferret through this," Parks said.

The DWP has already agreed to impose increases of nearly 24% on electricity bills between 2006 and 2010. DWP officials contend the solar plan would lead to rate hikes of no more than 4% for the average household, and that those would occur no sooner than 2011.

But according to a one-page summary attached to Miller's e-mail, P.A. Consulting Group warned that ratepayers could face annual surcharges of up to 12% per year if Measure B passes.

The analysis also said that the solar plan would cost $3.6 billion, not the $1.5 billion suggested by DWP General Manager H. David Nahai.

"Bottom line is they do not believe that the department can deliver on this program at all, and that the costs associated with the program are way understated," Miller wrote in his e-mail to Garcetti.

Mayor Antonio Villaraigosa and council members have embraced the solar plan, which was spearheaded by the International Brotherhood of Electrical Workers, the union that represents DWP employees. Under the plan, all the solar panels would be owned by the DWP and installed by the utility's workers.

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