The DWP is, to use the inevitable pun, in a bit of hot water.

Wendy Greuel, the city controller, says there’s evidence that the DWP had no reason to raise its rates, and could easily have afforded a $73 million transfer to the city.

“At best, the DWP zealously overprotected its financial position. At worst the DWP attempted to extort the city council into paying its proposed ECAF increase…[and] unnecessarily plunged the DWP further into a financial crisis,” Greuel wrote in a letter.

LADWP General Manager Austin Beutner fired back, “Since my appointment just weeks ago as General Manager of the Department of Water and Power, I have made it clear we are moving forward, not looking back,” he said in a statement. “We’ve put in place a plan to reduce costs in this budget year by $263 million and we have shared this plan with the City Council, our customers, and the community. These cost savings will help reduce rates.”

All this comes less than a month after two employees were fired for drinking, driving and attending a strip club during the workday.

See the audit here:
Audit of Los Angeles Department of Water and Power