The Board will additionally consider formal adoption of LADWP’s “Project PowerHouse” program that has successfully accelerated development project approvals and lowered power infrastructure upgrade costs for developers of 100% affordable and permanent supportive housing in concurrence with Mayor Bass’ Executive Directive 1
10:00 A.M. – Tuesday, August 15, 2023
LADWP Board of Commissioners Meeting Room
111 N. Hope Street, Los Angeles, CA 90012
Los Angeles Board of Water and Power Commissioners
Members of the LA Business Community
On Tuesday, the Board of Water and Power Commissioners will consider a proposal that would spur economic development throughout the city by creating a process for LADWP’s present and future customers to fairly share in the cost of new power infrastructure upgrades located in the public right-of-way for construction projects, commonly known as underground line extensions. Under the current LADWP policy, the cost of electrical infrastructure upgrades to support the electric service needs for new customers, and customers needing upgrades, is assessed to the first customer, typically a developer, rather than apportioning the upgrade costs to all expected power users that will derive a benefit from the upgraded power infrastructure. Charging the full infrastructure upgrade cost to the first customer requiring the upgrades has been a significant financial burden for many development projects in the City. By apportioning this cost burden and implementing a system to spread out the upgrade cost to all benefitting customers, LADWP will encourage and support the development of new housing and electrification infrastructure, including additional solar and EV chargers.
If approved, development project customers will be responsible only for costs associated with the electric service upgrades they needed. The proposed change to LADWP’s current policy would also place LADWP in accordance with the power infrastructure cost recovery policies of other electric utilities throughout California.
Separately, the Board will consider a proposal to add permanence to the LADWP’s policy and practice wherein the department covers the substantial cost of underground line extensions for 100% affordable and permanent supportive housing developments in Los Angeles, in support of the Mayor’s Executive Directive 1. The practice has been the hallmark of LADWP’s successful “Project PowerHouse” Initiative launched in March 2023.
See below for additional background on Project Powerhouse.
BACKGROUND ON PROJECT POWERHOUSE:
In support of the Mayor’s Executive Directive 1, to dramatically accelerate and lower the cost of affordable housing projects in the city, LADWP launched its “Project PowerHouse” Initiative in March 2023 to substantially alleviate the cost of public right-of-way power infrastructure upgrades for 100% affordable and permanent supportive housing developments in Los Angeles, and implement plans for faster power design services for affordable housing builders to align LADWP policy with Mayor Karen Bass’s homeless and affordable housing priorities.
Since its launch, LADWP has received more than two-hundred 100% affordable housing projects with 58 currently in active construction. With the success of Project PowerHouse, the Los Angeles Board of Water and Power Commissioners will receive a program update during today’s Board meeting and take up vote on formalizing the policy of LADWP to covering the cost of providing power to 100% affordable housing projects.
LADWP Media Relations: 213-367-1323