Sec. 23.137. Contract Authority of the General Manager of the Department of Water and Power for Specified Power Contracts.

authorization, provide the essential provisions of the contracts, certify that the conditions of this contract authority have been fully complied with and evaluate the financial impact on the DWP Action Plan of any discounts which have been provided under the terms of this ordinance. (b) Delegation. Notwithstanding any ordinance, rule or law of the City of Los Angeles to the contrary and under the authority of Charter Sections 373 and 604(c), the Board of Water and Power Commissioners is hereby authorized to delegate to the General Manager of the Department of Water and Power, without further authorization or approval, the power and authority to enter into long term contracts with Department of Water and Power customers, subject to the following limitations: (1) The Chief Accounting Employee of the Department must first certify that the proposed contract satisfies all the requirements of this Section 23.137. (2) The term of any such contract shall be a minimum of seven years and shall not exceed ten years. (3) Prior to completing the negotiation of any long term contracts, the Department of Water and Power shall complete or contract to complete, and keep up-to-date a cost of service study (“ Study ”) which shall include, but not be limited to, generation, transmission and distribution costs for the Department’s customers. The Study shall be reviewed and concurred in by the independent auditor described in Section 23.139 and the Department’s Chief Accounting Employee. Any disagreement regarding the Study among the independent auditor, the Department’s Chief Accounting Employee, and the General Manager shall be resolved by the Board of Water and Power Commissioners. (4) The Department of Water and Power shall collect from each customer the revenues necessary to cover the marginal costs of generation, the debt service applicable to that customer, and such additional margins as can be obtained competitively. (5) Prior to the start of negotiations with a given customer, the DWP’s Chief Accounting Employee shall furnish to the General Manager complete information on the cost to serve that customer and negotiations shall not be completed until the Study specified in Section 23.137(b)(3) is completed. (6) The Department of Water and Power shall collect transmission and distribution revenues based on the costs identified in the Study.