The Los Angeles Department of Water and Power Tuesday codified Project Powerhouse, an initiative aimed at supporting affordable housing developments, as well as a proposal to “fairly share” the cost of new power infrastructure in the public right-of-way for construction projects.
In a unanimous vote, the Board of Water and Power Commissioners agreed to permanently cover the substantial cost of underground line extensions for 100% affordable and permanent supportive housing developments in the city, a hallmark of Project PowerHouse, which the department launched in March.
To support Mayor Karen Bass’ executive directive to dramatically accelerate and lower the cost of affordable housing projects in the city, Project PowerHouse aimed to substantially alleviate the cost of public right-of-way power infrastructure upgrades for 100% affordable housing, and to implement plans for faster power design services for builders.
Since its launch, the utility has received more than 200 projects — all 100% affordable housing — with 58 currently in active construction.
“(This is) a very different way of engaging on the part of the department — where the department has been unleashed and is being permitted, our employees across various areas, to be very proactive and to think about themselves as part of a continuum — providing service not just water and power, but providing housing and looking at our role in responding to the social justice and human rights issue of our time in the city,” said Cynthia McClain-Hill, president of the DWP Board of Commissioners.
In addition, the commissioners approved a policy change to its rules governing water and electric service.
Previously, the cost of electrical infrastructure upgrades, or underground line extensions, is assessed to the first customer — typically a developer — rather than apportioning the upgrade costs to all expected power users who will use the line extension.
Charging the full line extension to the first customer has been a “significant financial burden” for many development projects in the city, according to LADWP officials.
The new policy will implement a system to spread out the cost among all benefiting customers. The LADWP will encourage and support the development of new housing and electrification infrastructure, including additional solar and electric vehicle chargers.
The new policy aligns with power infrastructure cost recovery policies of other electric utilities throughout California, officials said.