LAUSD (finally) Going Solar -- DWP Pays the Bill for Its Past Crimes

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For 10 years during the largest school building program in U.S. history, the LAUSD was thwarted in its effort to install solar energy panels by the Department of Water and Power.

And not only did the DWP block all major solar efforts but it cheated the district and other government agencies out of hundreds of millions of dollars.

But the times they are changing and as part of the outrageous Measure B campaign orchestrated by and for the benefit of the DWP's union, IBEW Local 18, the DWP agreed in October to settle an 8-year-old whistleblower lawsuit for fraud and pay $160 million (in ratepayer money) to the LAUSD, community colleges, MTA, UCLA and L.A. County.

Now, LAUSD is set to put some of its $67.7 million share to work. It plans to install solar panels in eight schools to generate 3.7 megawatts of electricity -- equal to one-third of the total solar power that is being generated in all of L.A. under DWP's longstanding efforts to block renewable energy development that would end its dependence on the nation's largest portfolio of old and polluting coal-fueled power plants.

On Thursday, the LAUSD Board's Facilities Committee reviewed the plan and it goes to the full board on Tuesday.

Under the plan, a private company -- not DWP -- will install the units on Roybal Learning Center, Banning High School, Polytechnic High, Local District 5 office, Canoga Park High, Cleveland High, El Dorado Elementary and Ann Elementary.

The cost is $24 mllion: $12 million from the DWP from the settlement, $12 million from DWP for "incentives." After a staff review, SunPower Corp. (which gets its panels mainly from Malaysia, where it has three plants) was selected as the likely supplier and installer pending negotiations. LAUSD also will get the value of the energy created and the renewable energy credits that could become valuable in the years ahead.

I've got some unanswered questions about the LAUSD plan but on its face, it's everything Measure B is not.

It's being done by a private company at normal union rates -- not the bloated salaries and benefits of the IBEW.

It's being done by a company with vast experience -- not the DWP which has almost no experience in the solar field and wants to perpetuate its monopoly no matter how much it costs the public.

It's being done after extensive planning and research and approved in a public process by the appropriate authorities -- not after voters are tricked into approving a phony ballot measure that gives officials a blank check for rate hikes and is based on backroom deals and pie-in-the-sky promises.

More than anything else I have said, or could say, about what's wrong with Measure B, this is the heart of the issue.

DWP has failed us, fought against solar energy, defrauded other public agencies, ripped off the ratepayers and it's done so with the support of every official in City Hall with the exception of Controller Laura Chick who has exposed one DWP fraud after another and now says Measure B "stinks."

If it smells like corruption, looks like corruption, it probably is corruption.

Support the No on Measure B campaign with your votes and contributions. Go to nomeasureb.com and help get us clean energy and clean government. 

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8 Comments

between this story and the outrageous measure b and green path debacles, plus the simple facts and experience we have seen in 45 other countries which support loan and feed in tariff programs for ratepayers to generate solar power on their own rooftops, all arrows point in one direction.

DWP needs to STOP their Empire Building and work for its owners, which are the ratepayers. they need to issue tax-free muni bonds or make a deal with a lender for super-cheap, guaranteed AB 811 loans so that ALL of us can install solar panels and efficiency improvements on our properties, and repay through the property tax system. payback is guaranteed to them, is tax deductible to us, and attaches to the property so home sales are quick and affordable.

they need to implement a per-kWh payment of 50 cents to those ratepayers who oversize their systems, save energy and feed excess into the grid - right where it is needed, right when it is needed. this combination of loans and payments has proven:

1. to increase energy conservation, so overall consumption drops;

2. to quickly and very cheaply ramp up renewable generation right where the power is used;

3. to decongest existing grid;

4. to engage citizens and provide fast payback times for solar panels, which incentivizes ratepayer and lender investment (instead of forcing the costs of DWP - owned infrastructure down our throats with nothing in return);

5. to emit FAR fewer GHGs than new transmission lines and remote solar plants (like Green Path), to save thousands of acres of pristine ecosystem, prevent eminent domain and save billions of gallons of water (ALL power sources use lots of water except solar panels);

6. to boost housing values by at least $25,000 even in this slumping market (for those who install PV) - these houses also sell much faster;

7. to save ALL ratepayers money, while switching to clean renewables.

Everyone moaning about DWP and increased rates, polluting power, eminent domain, and corruption needs to start pushing for this simple program, which solves all the issues. It's not enough to say "No on B." We have to simultaneously say "Yes on AB 811 loans and generous feed in tariffs."

Just when you think it can't get any worse, it gets worse.

Why the hell is the Los Angeles Times or the Daily News NOT covering the AB 811 alternative?

This makes so much more sense than having DWP own and install the panels.

On every building that springs a leak, private building owners will sue everyone in sight including DWP. So the ratepayers will also get soaked for higher litigation costs that could be completely avoided by following the path of AB 811. The AB 811 alternative uses private installers and if a roof springs a leak, the building owners will look to the private installer's liability insurance and NOT DWP ratepayers.

This is a major unexplored argument against Measure B.

If my calculator is right - and I have checked this by hand - if it costs $24 million for 3.7 MW, then it averages $6,486,486.40 per MW.
If you take 400 MW times about $6.5 million- the Measure B plan, that would come out to about$2.6 billion - am I right - my calculator ran out of room?

http://votenomeasureb.com/

To No on Measure B, put another way, that is $6.49 per Watt, pretty much in line with DWP's report to the Board of Water and Power Commissioners on January 21, 2009. Perhaps this real-world number should be shared with Huron Consulting whose statistical analysis says it costs half that. But don't tell DWP's David Nahai, who is relying on the Huron Report's speculations to pimp for Measure B.

Why are we not building solar panels in California?

Ellie B, California has strong environmental laws which push up the cost of the factories which make the actual solar cells. That's why companies such as Intel and other chip manufacturers went out of state, then out of country long ago. They simply cannot compete with the rest of the world when it comes to the fabrication of the chips (and the equivalent solar cells). If Measure B passes the mandate is for an annual quantity of power, irrespective of cost. That means the 2/3 of the money will create jobs overseas, and the jobs that remain will go to one union, without competive bidding for labor. That bidding would create many more jobs quickly in the community. Go to www.VoteNoMeasureB.com to read up for yourself.

Good reporting on Measure B Ron. I know it's rather ridiculous of me to say that to someone who did it for 30+ years, but no one gets tired of compliments.

DWP sure seems like an organization who likes to keep the consumers under their thumbs.

Unions tend to hold on the label "union" as if it is a shield of righteousness; as if everything a union thinks of doing is good and holy simply because it came from a union. But unions can come up with terrible ideas too, just like everyone else.

Perhaps there is too much Group Think in the unions involved in this plan?

Definition of Group Think:

http://www.valuebasedmanagement.net/methods_janis_groupthink.html

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About Ron

Ron Kaye is the former editor of the Los Angeles Daily News where he spent 23 years helping to make the newspaper the voice of the San Fernando Valley and fighting for a city government that serves the people and not special interests. Twice in recent years, Los Angeles Magazine listed Kaye among the city’s most influential people, specifically in the area of politics. Kaye has been variously described in the media as the “accidental anarchist,” “the Patrick Henry of the San Fernando Valley” and a “passionate populist.” He is now committed to carrying on his crusade for a greater Los Angeles as an ordinary citizen. Previously, Ron worked at the Los Angeles Herald Examiner, Associated Press, Cleveland Plain Dealer and The Australian as well as papers in Fairbanks, Alaska and Yakima, Wash. He also wrote for Newsweek magazine, The Guardian in London and the National Enquirer.
You can email me at ron@ronkayela.com