DWP MAY DELAY 3.8% WATER-RATE HIKE.Byline: Dan Laidman Staff Writer Rising demand for hydroelectric energy may boost revenues to the city Department of Water and Power by as much as $10 million and delay a planned request for a 3.8 percent water-rate hike next year, officials said Tuesday. Natural gas prices spiked after the Gulf Coast hurricanes, driving up demand for hydroelectric power hydroelectric power: see power, electric; water power. hydroelectric power Electricity produced from generators driven by water turbines that convert the energy in falling or fast-flowing water to mechanical energy. and making the water that the DWP DWP Department of Work and Pensions (UK) DWP Drinking Water Program DWP Dynamic Weapon Pricing (gamin, Counter-Strike: Source) DWP Department of Water & Power DWP Drinking Water Protection supplies to small plants more valuable. Officials estimate the utility could gain an additional $5 million to $10 million in revenue, which might offset the need for a water-rate hike. ``As long as that's up at that level, ... the need for the rate increase has been reduced,'' said Ron Deaton, general manager of the DWP. Deaton cautioned, however, that volatile natural gas prices could necessitate ne·ces·si·tate tr.v. ne·ces·si·tat·ed, ne·ces·si·tat·ing, ne·ces·si·tates 1. To make necessary or unavoidable. 2. To require or compel. a power rate hike at some point. The department plans hikes of 3.2 and 3.9 percent for each of the next five years to operate the water system, although the increases are on hold pending an outside financial review of the utility. Now the DWP is considering holding off on seeking the 3.8 percent hike planned for January. ``To the extent that gas prices skyrocket sky·rock·et n. A firework that ascends high into the air where it explodes in a brilliant cascade of flares and starlike sparks. intr. & tr.v. , the revenue coming to the water system goes up,'' said Robert Rozanski, the DWP's chief administrative officer A chief administrative officer (CAO) is responsible for administrative management of private, public or governmental corporations. The CAO is one of the highest ranking members of an organization, managing daily operations and usually reporting directly to the chief executive . But Rozanski cautioned that the revenue stream is unreliable because the water quantity depends on weather fluctuations. And natural gas prices, while currently high, can change drastically. Members of the Board of Water and Power Commissioners tied possible rate hikes to the increased scrutiny they have promised for the department's spending. At a workshop Tuesday on the DWP budget, the commissioners sifted through the utility's financial data and signaled their intention to trim nonessential non·es·sen·tial adj. Being a substance required for normal functioning but not needed in the diet because the body can synthesize it. spending. ``Before we raise rates, and I speak for myself, we are going deep into that stuff,'' said Commissioner Nick Patsaouras. Patsaouras requested more information about spending on marketing, public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most , lobbying, legal representation, subscriptions and sponsorships, while the commission president, Mary Nichols, pointed to a contract with a mediator mediator n. a person who conducts mediation. A mediator is usually a lawyer, or retired judge, but can be a non-attorney specialist in the subject matter (like child custody) who tries to bring people and their disputes to early resolution through a conference. that has lasted for 15 years. Deaton said that, as officials review such spending, there will be differing views of what is discretionary. For example, he said, he considers the lobbyists who represent the DWP in Sacramento and Washington to be essential. ``What are the items you would be embarrassed by if you saw them in the paper?'' Nichols said. ``Those are what could be defined as discretionary.'' Dan Laidman, (213) 978-0390 dan.laidman(at)dailynews.com |
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