14-0738-S1

The Energy and Environment Committee is recommending that the Los Angeles City Council approve amendments to the Department of Water and Power's (DWP) Open Access Transmission Tariff (OATT).

District
First Seen November 04, 2025
Last Seen November 04, 2025
Appearances 1 meeting(s)
Official title: EXEMPTION, ENERGY AND ENVIRONMENT COMMITTEE REPORT and ORDINANCE FIRST CONSIDERATION relative to the Department of Water and Power (DWP) Open Access Transmission Tariff (OATT).

Timeline

Related documents

Report from Energy and Environment Committee_10-21-25
What is Being Proposed?

The Energy and Environment Committee is recommending that the Los Angeles City Council approve amendments to the Department of Water and Power's (DWP) Open Access Transmission Tariff (OATT). The proposal includes approving two specific amendments (Amendments No. 5 and No. 6) to the transmission tariff agreement and granting the Board of Water and Power Commissioners authority to delegate certain transmission service agreements to the General Manager.

Why?

The amendments modify existing terms and conditions for how the DWP provisions transmission and ancillary services to electric generating facilities connecting to the DWP transmission system. According to the fiscal impact statement, these changes do not affect rates or tariff revenue—they only adjust non-rate operational terms and conditions. The City Administrative Officer confirmed there is no impact on the General Fund.

Key Details

The committee met on October 21, 2025, and voted unanimously (5-0) to approve the recommendations The ordinance amends Section 23.133 of the Los Angeles Administrative Code A CEQA exemption determination was made, finding these administrative/fiscal activities do not constitute a "project" requiring environmental review The last day for Council action is November 14, 2025, with a final deadline of November 30, 2025

Impact

This change primarily affects businesses and entities seeking to interconnect electric generating facilities to the DWP's transmission system. By streamlining the approval process through delegation authority, the city can more efficiently manage transmission service agreements while maintaining oversight through policy parameters.

Report from City Attorney dated 10-07-25
What is Being Proposed?

The City Attorney's Office is recommending that the Los Angeles City Council adopt a draft ordinance amending the Los Angeles Administrative Code to expand the Los Angeles Department of Water and Power's (LADWP) authority to enter into transmission service agreements. Specifically, the amendment would allow LADWP's General Manager to execute agreements with longer terms and under different conditions than currently permitted, including two-year terms with automatic renewal options and terms exceeding three years under specific circumstances.

Why?

Currently, LADWP can only execute transmission service agreements for periods not exceeding three years. The proposed amendment seeks to modernize and streamline LADWP's ability to manage its transmission system capacity and generate revenue from excess capacity. This change also updates LADWP's Open Access Transmission Tariff (OATT) to comply with operational requirements and standards set by regional electricity coordinators and the City Charter, while ensuring comparable and non-discriminatory service to all qualified customers.

Key Details

The ordinance would authorize three new agreement types: (1) two-year terms with automatic renewal options for additional two-year periods, provided LADWP retains sole discretion to terminate and the agreements don't jeopardize the tax-exempt status of municipal bonds; (2) terms exceeding three years under an executed Governmental Person Use Certificate; and (3) agreements pursuant to an approved transmission service tariff. The amended OATT includes standard procedures for interconnecting both large (greater than 20 megawatts) and small (20 megawatts or less) electric generating facilities to LADWP's grid.

Impact

This change affects electricity generators seeking to connect to LADWP's transmission system and allows LADWP greater flexibility in revenue generation from excess transmission capacity. The Board of Water and Power Commissioners is requesting Council adoption of the ordinance. Council members should note the City Attorney has determined the amendment is exempt from California Environmental Quality Act (CEQA) review as it involves a fiscal/administrative change without commitment to a specific project.

Report from Board of Water and Power Commissioners dated 9-26-25
What is Being Proposed?

The Los Angeles Department of Water and Power (LADWP) is requesting City Council approval of two amendments to its Open Access Transmission Tariff (Amendment No. 5 and Amendment No. 6, identified as DWP No. BP 01-017). These amendments were previously approved by the Board of Water and Power Commissioners on September 22, 2025, through Resolution No. 026 050, and now require formal City Council approval to proceed.

Why?

The document does not provide detailed explanation of the rationale behind these specific amendments. However, the submission follows the required legal procedures outlined in Charter Section 674 and Los Angeles Administrative Code Section 23.134, which mandate that such tariff amendments receive approval from both the Board of Water and Power Commissioners and the City Council.

Key Details

Date of Board Approval: September 22, 2025 Date Submitted to Council: September 26, 2025 Contact for Questions: Mr. David Rahimian (213-367-0361) or Mr. Paul Habib (213-367-3846) Supporting Documents: The submission includes General Manager Certificates (GMC No. 5 with Attachments A-E and GMC No. 6 with Attachments A-D), an ordinance, and a CAO Report

Impact

This tariff amendment would affect LADWP's open access transmission services, which impact the utility's ability to provide electricity transmission services. The specific effects on rates, customers, or operations are not detailed in this cover letter and would be contained in the attached General Manager Certificates and supporting documentation.

8 additional document(s)
Attachment to Report dated 10-07-25 - Draft Ordinance
Attachment to Report dated 9-26-25 - Board Letter Approval
Attachment to Report dated 9-26-25 - Board Resolution
Attachment to Report dated 9-26-25 - Draft Ordinance
Attachment to Report dated 9-26-25 - Fifth Amendment
Attachment to Report dated 9-26-25 - Sixth Amendment
Attachment to Report dated 9-26-25 - CAO Report
Attachment to Report dated 9-25-25 - CAO Report Attachment 2