Ron Nichols, Welcome to Los Angeles

by Jessica Duboff

Yesterday the LA City Council voted 11-0 to approve Ron Nichols' appointment as General Manager of the Los Angeles Department of Water & Power (LADWP).

Highlights of the hour-long confirmation hearing:

• A number of the questions from Councilmembers concerned the restoration of public trust that has eroded over the past couple years. Mr. Nichols stated he would work to make sure the public knows what the choices are and how certain alternative policies would impact rates.
• When asked about his direction as GM, he stated his goal was to keep the system running without undue rate increases, provide a better understanding of what drives rates and make clear where  decision makers do or do not have discretion to spend. He spoke of expanding on what Interim LADWP GM Austin Beutner began undertaking with regard to budget decisions and policy choices.
• As far as how a public utility could contribute to generating jobs in this economy, Mr. Nichols responded that the lower the cost of utilities to business, the more business is encouraged to hire.
• The hearing wrapped up with Council President Garcetti questioning why he would want the job. The answer- "I spent my whole life fixing things. I'm looking to create sustainable solutions....and bring the Department back to the legacy it used to enjoy."

Mr. Nichols, the Department's 6th GM since 2007, will face a number of immediate challenges including maintaining LADWP's recently achieved 20 percent renewable goal, possible rate hikes to address infrastructure maintainance and departure from coal power, and changes to the LADWP's popular solar rebate program. Not to mention the results of the March 8th ballot initiatives that may create a ratepayer advocate and change the budget and surplus reporting.

Congratulations to Mr. Nichols, the Chamber looks forward to working with you to ensure cost-effective water and power delivery for Los Angeles.