CITY TELLS DWP TO SELL TO STATE COUNCIL'S VOTE NOT BINDING ON COMMISSIONERS.

Byline: Alexa Haussler Staff Writer

Despite doubt about whether the city will ever be paid, the Los Angeles City Council directed the Department of Water and Power on Wednesday to continue selling surplus energy to the state power grid.

The council's action, which is not binding, comes at a time when private utilities are facing bankruptcy and the DWP's Board of Commissioners appears set to cut off sales since it already is owed $145 million and chances of collecting are getting slimmer.

``We understand that we are part of the same economy and our economic fortunes are inextricably linked with the rest of the state,'' said Councilwoman Ruth Galanter, who introduced the measure.

Although they acknowledged the city may not be paid for power it produces, council members said it was important to send a message to state government leaders in Sacramento that Los Angeles will not isolate itself.

``It is the good and responsible position to take, protecting our ratepayers and being good neighbors of the state,'' Councilwoman Laura Chick said.

The vote was 9-1, with Nate Holden casting the no vote. Absent were council President John Ferraro and members Hal Bernson, Mike Feuer and Joel Wachs. The council seat formerly held by state Assembly member Jackie Goldberg is vacant.

A mayoral aide said he was unsure whether Mayor Richard Riordan would sign the council's resolution.

``But the bottom line is that the mayor's first responsibility is to the taxpayers of Los Angeles, and the mayor is very concerned about proceeding with the sale of any energy without further assurances that we are going to be paid,'' said Deputy Mayor Ben Austin.

DWP general manager Dave Freeman - who has been credited with cutting billions in debt from the municipal utility - has said he wants to keep providing surplus power to the state grid.

The state grid, in turn, provides the power to the financially troubled utilities.

The DWP Board of Commissioners is scheduled to decide Friday whether to cut off the sale of the city's surplus power.

In a meeting Tuesday, DWP commissioners said they feared the city would be harmed by continuing to sell power to utilities that are on the verge of bankruptcy.

But the board postponed its vote until Friday at the behest of Assembly Speaker Robert M. Hertzberg, D-Van Nuys, and Gov. Gray Davis, who are trying to buy time for state lawmakers to hash out a deal to bail out the utilities.

Commissioner Rick Caruso said he disagrees with the City Council decision but said the board will consider it when making its decision.

``We can't ignore it; it is the City Council,'' he said. ``In my opinion, we are going to certainly have to take that into account, and the mayor's opinion is obviously of critical importance.''