Running the DWP like a business
Re “DWP Outlines Plans for Series of Rate Hikes,” April 23
Now this is realistic -- making the price of your product keep pace with its cost. This looks like something any prudent business manager would do if he wanted to stay in business. So why has it been so difficult for the Los Angeles Department of Water and Power to figure this out?
Since the DWP is a city department and is ultimately answerable to the City Council and mayor, who are very sensitive to the reactions of their constituents regarding the cost of municipal services, it is difficult for the DWP to operate financially just like any other business. The independence just isn’t there.
Also, being the largest municipal utility in the nation, the DWP’s actions (whatever they may be) are overly scrutinized. That’s not to say the DWP hasn’t brought hell on its own head. If the DWP would spend more time cooperating with City Hall and responding to its needs (be they real or political), life would be a lot less strenuous for the municipal utility when it comes to making and spending its money.
ARTHUR SAGINIAN
Saugus