DWP Proposes Selling Assets To Raise Money
The DWP building in downtown Los Angeles.
Interim general manager of the Los Angeles Department of Water and Power Austin Beutner is proposing to sell the downtown DWP headquarters, along with other DWP assets, in order to raise hundreds of millions of dollars without raising utility rates, according to KABC-TV. According to Beutner, the utility will not push for additional rate increases for 2010 and is trying "to find new internal funding sources so that ratepayers are not asked to pay for big increases, especially during this difficult economy."
If the proposal goes through, Beuter plans on selling the DWP downtown property for $300 million and then leasing back the building from the buyer. The plan also calls to sell city-owned natural gas reserves in Wyoming, along with the city's stake in an Arizona coal-fired power plant, in order to generate up to $650 million. Other assets include a 100-acre parcel in Malibu.
A decision on the issue will be made at the next board meeting.
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