Los Angeles Department of Water and Power

Los Angeles Department of Water and Power
Company type	Municipal utility
Industry	Public utility
Founded	1902
Headquarters	Los Angeles, United States
Area served	Los Angeles and surrounding areas in southwestern Los Angeles County, California
Products	Electricity, water
Parent	City of Los Angeles

The Los Angeles Department of Water and Power (LADWP) stands as the largest municipal utility in the United States, boasting an electric generation capacity of 8,100 megawatts (2021–2022). It supplies an average of 435 million gallons of water daily (equivalent to 487,000 acre-feet annually) to more than four million customers, including residents and businesses throughout Los Angeles and surrounding areas in southwestern Los Angeles County, California.

Established in 1902 with the primary mission of delivering water to Los Angeles and its neighboring communities, LADWP expanded into electricity provision by 1917. The department has been at the center of significant historical events, such as the catastrophic 1928 St. Francis Dam collapse, and has been examined in works like Water and Power and Cadillac Desert.

Private operators

During the mid-1800s, the rapid expansion of Los Angeles’s population exposed critical flaws in its water infrastructure, which depended on open ditches that were frequently contaminated and unsuitable for household consumption. In 1853, the city council dismissed a proposal for a closed-pipe water system as being too costly, opting instead to permit water carriers using horse-drawn wagons to fulfill residential water demands. By 1857, William G. Dryden was granted franchise rights to supply water through underground wooden pipes; however, this system was devastated by heavy rains in 1861, causing Dryden to relinquish his franchise. Subsequent water distribution contracts also failed to provide reliable service.

In 1868, Los Angeles surrendered its rights to the Los Angeles River, thereby losing municipal control over its water supply. The Los Angeles City Water Company—founded by John S. Griffen, Solomon Lazard, and Prudent Beaudry—breached lease agreements by extracting excessive amounts of water via concealed tunnels. By the mid-1890s, as the company’s lease approached expiration, public opinion increasingly favored restoring complete municipal management of local water resources.

Public control

Fred Eaton advocated for financing water provision through tax revenues rather than charging users directly. During his nine years as superintending engineer for the Los Angeles City Water Company, Eaton significantly expanded the water infrastructure. After resigning in 1886 to assume the role of City Engineer, officials devised plans in 1897 to modernize the system and chose not to renew the company’s lease beyond July 21, 1898. Early discussions that year centered on transferring control of the water system back to the city.

It was agreed that key company employees would keep their positions to ensure operational continuity. William Mulholland, who succeeded Eaton, initially lacked a guaranteed role and was unable to produce requested documentation during negotiations. It was discovered that no official records or maps existed; Mulholland asserted he had memorized all system details. Demonstrating his comprehensive knowledge secured him a position with the city. He subsequently convinced the principal stockholder of the company to accept a $2 million purchase offer from the city.

Power delivery

The Los Angeles Bureau of Power and Light was created in 1911 to oversee municipal electricity services, which at that time relied on private power providers. In 1922, it acquired Southern California Edison’s distribution network within city boundaries. After purchasing the Los Angeles Gas and Electric Corporation’s system in 1937, it became the predominant electricity supplier. That same year, it merged with the Bureau of Water Works and Supply to form what is now known as the Los Angeles Department of Water and Power (LADWP), which became Los Angeles’ exclusive electricity provider by 1939.

Municipal electric service began in 1917 with Power Plant No. 1—a hydroelectric facility located in San Francisquito Canyon powered by water from the Los Angeles Aqueduct. This plant generates 70.5 megawatts, sufficient to supply approximately 37,500 homes, and continues operations today.

Power Plant No. 2 was constructed in 1920 but was destroyed during the St. Francis Dam disaster; it was subsequently rebuilt and resumed operations in 1928 with an output capacity of 18 megawatts.

On January 17, 1994, the Northridge earthquake triggered Los Angeles’ only complete blackout; however, power was mostly restored within several hours.

In September 2005, an accidental cut by a DWP employee caused a power outage affecting over half of Los Angeles for roughly ninety minutes.

Significant incidents and disputes

On March 12, 1928, the St. Francis Dam, constructed and managed by LADWP, suffered a catastrophic failure. This tragedy ranks as California's second most lethal disaster after the 1906 San Francisco earthquake, resulting in approximately 425 deaths and widespread destruction in the Santa Clara River Valley communities. The elevated casualty count was partly attributed to communication breakdowns between LADWP and Southern California Edison personnel, which delayed alerts to downstream towns such as Piru, Fillmore, Santa Paula, and San Buenaventura. William Mulholland accepted full accountability and resigned the following year.

LADWP has played a pivotal role in acquiring water rights within the Owens Valley area, including ownership of farms and jurisdiction over Mono Lake and Owens Lake. Additionally, the department contributed to the construction of Hoover Dam and jointly managed its electrical operations with Southern California Edison until 1987.

On October 10, 2011, LADWP partnered with the Community Redevelopment Agency of Los Angeles and the Los Angeles Cleantech Alliance to establish the LA Cleantech Incubator, aiming to promote innovation in clean technology.

In October 2022, LADWP was found liable in a lawsuit filed by the Great Basin Unified Air Pollution Control District for inadequate dust control on Owens Lake near environmentally sensitive tribal territories; the court dismissed LADWP’s defense of non-responsibility.

Concerns over excessive overtime and payroll expenses

LADWP has been scrutinized for high overtime compensation. In 2018, 306 staff members earned more than $100,000 in overtime pay, with the agency disbursing a record $250 million—an increase of 84% since 2013.

For example, one security employee received $314,000 in overtime on top of a $25,000 base salary, while three others each earned over $200,000 in overtime alone. (By comparison, the national median wage for security officers was $28,500 in 2018.) Among the highest total earnings were an electric distribution mechanic making $452,659 and two senior load dispatchers exceeding $430,000 each.

These substantial overtime payments stem from union agreements mandating double-time wages for shifts extending beyond one hour of overtime—not based on surpassing a 40-hour workweek but rather on hours worked past a "normal" shift duration.

Moreover, LADWP’s payroll cost per customer amounted to $490 annually, significantly exceeding the national median of $280 for large utilities. This indicates that LADWP spends roughly $424 million more each year on payroll compared to similar utilities.

Electrical system

During 2019–20, LADWP delivered over 21,130 gigawatt hours (GWh) of electricity to upwards of 1.5 million residential and commercial customers, plus approximately 5,200 customers in Owens Valley.

Within city limits, LADWP operates four natural gas power plants that represent 24% of its generation capacity. Coal-fired plants located in Utah and Arizona supply 21% of its electricity but are scheduled for phase-out by 2025. Nuclear energy from Arizona’s Palo Verde Nuclear Generating Station accounts for 14%, while hydropower contributes around 2%, primarily sourced from Hoover Dam and the Los Angeles Aqueduct system.

Together with the California Department of Water Resources, LADWP manages the Castaic Power Plant—a pumped-storage hydroelectric facility producing roughly 1,600 megawatts (22% of total capacity) by transferring water between reservoirs to accommodate fluctuations in demand.

LADWP operates a fully integrated system encompassing power generation, transmission, and distribution across five Western states, serving over four million residents within Los Angeles.

Electricity composition

In 2004, the Los Angeles City Council mandated LADWP to produce 20% of its energy from clean sources (excluding Hoover Dam) by 2010—a goal that was not only met but exceeded. By 2016, renewable energy comprised 25% of the mix, increasing to 33% in 2020. At that time, renewables represented 37% of LADWP's total capacity, including the 120 MW Pine Tree Wind Farm, recognized as the largest municipally owned wind facility in the United States. The utility's renewable portfolio also features photovoltaic solar installations throughout the Southwest and geothermal projects near the Salton Sea.

In March 2021, LADWP collaborated with Mayor Eric Garcetti, U.S. Secretary of Energy Jennifer Granholm, and energy specialists to unveil the Los Angeles 100% Renewable Energy Study ("LA100"). Conducted by the National Renewable Energy Laboratory, this study mapped out a strategy for achieving a fully renewable electricity grid between 2035 and 2045, with wind and solar expected to contribute between 69% and 87% of total power generation.

By 2020, renewable sources were LADWP’s leading energy contributor at roughly 37%, followed by natural gas at 24%, and coal at 21%. In contrast to California’s investor-owned utilities such as SCE, PG&E, and SDG&E—which phased out coal earlier—LADWP announced in 2013 its intention to eliminate coal usage by 2025 through divesting from the Navajo Generating Station and converting the Intermountain Power Plant to natural gas.

Underground infrastructure

Historically, most electrical lines in Los Angeles were installed above ground. Since 2007, LADWP has embarked on an extensive initiative to replace overhead lines with underground systems. However, progress has been hindered by budget limitations, traffic disruptions, competing infrastructure upgrades, and reductions in workforce. The cost of installing underground transmission lines is approximately 10 to 14 times higher per unit length than overhead alternatives, presenting substantial financial and engineering obstacles. Moreover, burying the three existing 500 kV transmission lines (or five if counting the Pacific AC Intertie) is currently not technically viable. The modernization of overhead lines is projected to span 10 to 15 years and involves replacing V-shaped brackets with cross-brackets, substituting some wooden poles for metal ones, and upgrading insulators on lower voltage distribution lines to align with Southern California Edison's standards.

Recently, LADWP completed two underground projects at 230 kV utilizing advanced oilless cable technology that mitigates environmental risks associated with conventional oil-insulated cables.

The oil-filled "pipe type" cable on the 315 MW Scattergood Steam Plant (Unit 3) to West Los Angeles 230 kV line has experienced multiple failures over its 45-year lifespan and now requires replacement.

Water infrastructure

In 2019, LADWP delivered around 159 billion gallons of water through approximately 735,600 service connections spanning 7,340 miles of pipeline. During fiscal years 2016–2020:

Roughly 48% originated from the Sierra Nevada via the Los Angeles Aqueduct, transported by gravity without electric power;
About 41% was supplied by the Metropolitan Water District of Southern California, which draws from both the California Aqueduct and Colorado River Aqueduct—energy-intensive systems historically connected with Hoover Dam operations;
Approximately 9% came from local groundwater sources that are actively managed but face increasing contamination threats from chemicals such as MTBE and perchlorates;
Nearly 2% consisted of recycled water primarily utilized for irrigation, recreational activities, and industrial applications.

The proportions of these water sources vary annually. With anticipated growth in demand coupled with diminishing supplies from Mono and Owens basins, LADWP is investigating alternative options including a direct link to the California Aqueduct, expanded use of recycled water, stormwater capture initiatives, and enhanced conservation measures. Aging pipelines approaching capacity have prompted replacement efforts along key corridors like Exposition and Olympic Boulevards.

Service Area

Outside of Los Angeles proper, LADWP extends its services to portions of Bishop, California, Culver City, California, South Pasadena, California, and West Hollywood, California. The utility's coverage area supports the needs of approximately four million individuals and commercial entities.

Board of Water and Power Commissioners

The governance of LADWP is entrusted to a five-person Board of Water and Power Commissioners. These commissioners are appointed by the Mayor of Los Angeles and must be confirmed by the Los Angeles City Council for terms lasting five years. The board's responsibilities include establishing policies, sanctioning utility rates, endorsing renewable energy initiatives, and determining employee pension structures.

Board meetings take place twice each month on Tuesdays at 10:00 a.m., with agendas made publicly available no less than 72 hours prior. The Board adheres to the stipulations of California’s Brown Act and has incorporated adjustments to comply with COVID-19 health guidelines.

On May 26, 2023, Cynthia Ruiz became the first Native American commissioner to serve on the Board but was removed by Mayor Karen Bass before completing a year in office. George McGraw was sworn in as her successor on June 20.

Executive Leadership

The day-to-day operations are overseen by the general manager, supported by senior assistant general managers, the chief financial officer, and the managing senior assistant city attorney (reporting to the Los Angeles City Attorney).

Ron Nichols resigned from his role as LADWP chief on January 31, 2014 amid ongoing controversies. Subsequently, on February 21, 2014, Marcie L. Edwards was unanimously appointed by the Los Angeles City Council as LADWP’s first female general manager. Edwards brought extensive experience from her previous role as Anaheim’s City Manager and head of Anaheim Public Utilities for 13 years, as well as a 24-year tenure at LADWP beginning in an entry-level position.

Edwards retired in August 2016, after which David H. Wright was named Interim General Manager and later confirmed. Wright resigned in 2019 following an FBI investigation at LADWP headquarters. He was sentenced to six years in federal prison for accepting bribes connected to a $30 million no-bid contract.

On September 13, 2019, seasoned LADWP executive Martin L. Adams was appointed General Manager.

In 2024, Janisse Quiñones assumed leadership of LADWP with an annual salary of $750,000—making it the highest-paid position within Los Angeles city government—after unanimous approval by the City Council upon nomination by Mayor Karen Bass.

Headquarters

LADWP’s main offices are located in a Corporate-International Style building designed by A.C. Martin & Associates, completed in May 1965. This 17-story tower situated on Bunker Hill unified eleven previously scattered Downtown Los Angeles offices and accommodates roughly 3,200 employees. On September 21, 2012, the building was officially recognized as a Los Angeles Historic-Cultural Monument.

Renamed the John Ferraro Building on November 16, 2000 in honor of the late Los Angeles City Councilman John Ferraro, this structure has also been prominently featured in the 2010 motion picture Inception.

In Popular Culture

LADWP’s influence on regional water issues has been reflected repeatedly across various cultural works:

The 1974 movie Chinatown, which draws inspiration from LADWP’s historical acquisition of land and water rights during the California Water Wars.
William L. Kahrl’s 1982 publication Water and Power: The Conflict over Los Angeles' Water Supply in the Owen offers an analysis of water policy evolution in the American West with emphasis on LADWP’s impact.
Marc Reisner’s 1986 book Cadillac Desert along with its documentary adaptation examine Western U.S. water policies spotlighting LADWP’s pivotal role.
The 1997 film Volcano makes references to LADWP within its Los Angeles setting.
The 2022 television series The Lincoln Lawyer, adapted from Michael Connelly’s novels, includes multiple scenes set inside the John Ferraro Building—LADWP’s headquarters.

References

Notes

External links

Official website of the Los Angeles Department of Water and Power
Mono Lake Committee (organization opposing excessive LADWP water diversion)
Owens Valley Committee (group involved in legal actions over LADWP water usage)