Fred Pickel, Ratepayer Betrayer

PERSPECTIVE--Benedict Arnold betrayed our nation, but at least he accomplished significant good before he strayed down the dark path of treachery. He saved the Continental Army from certain defeat during the retreat from the failed invasion of Canada, skillfully parrying British efforts to destroy it. His leadership at Saratoga led to the most important strategic victory for the colonists and was a major factor in drawing France into the conflict. French assistance was vital in George Washington’s overwhelming victory over the British at Yorktown. 

Ratepayer Advocate Fred Pickel (photo) sold the ratepayers and stakeholders of the DWP up the Yazoo without so much as contributing to the public’s awareness of just why rates must be increased. 

His statement declaring DWP’s proposed series of rate increases as “fair and reasonable” has provided the DWP and its GM, Marcie Edwards, with a public relations windfall. 

The following press release was issued by the DWP on January 15: 

We are pleased that the Ratepayer Advocate has found that the power rate request to be “just and reasonable,” as it will invest in replacing aging infrastructure, which is critical to providing reliable electric service to our customers. If the Board of Water and Power Commissioners and the City Council approve the rate request, it  will allow us to continue the transformation of our power system to a clean energy future that protects the environment, while complying with regulatory mandates.

We have included key performance metrics and regular public reporting of our progress in the proposed power rate ordinance as recommended by the Ratepayer Advocate, and we are pleased that his report recognized that this will increase transparency and accountability by linking rates to the progress and performance of key programs. We are also grateful that the Ratepayer Advocate recognized that the Department has been instrumental in supporting the design and inclusion of the reporting mechanisms in the rate ordinances, referring to LADWP’s support and actions as, “unprecedented and a reflection of a more mature and sustainable management practices.”

Dr. Pickel’s independent review of the rate request is valuable, and we are reviewing his additional recommendations. We look forward to consideration of the power rate action by the Board of Water & Power Commissioners next Tuesday (January 19) and consideration of both water and power rates proposals by the City Council and Mayor thereafter.

Fred Pickel has never bothered to reach out to the media and the public about the need for reform at the utility. The hundreds of millions of dollars siphoned to the city’s poorly managed general fund at the expense of ignoring much needed capital improvements and maintenance to our water and power system should have been at the top of his agenda.

He should have been battling the City Council over the continuation of this backdoor tax and publicly disclosed how much it has diverted from the primary task of maintaining infrastructure.

He should have raised a giant red flag about the conflict of interest evident in DWP labor negotiations.  As long as the IBEW and its members can contribute to city election campaigns, the ratepayers will never have fair representation.

He should have emphasized the steady increases DWP employees received during the recession when the residents were taking pay cuts. 

He can analyze the numbers all he wants – and that is a job that must be performed – but the results lack meaning when taken out of context of the bigger issue of reform. In his report issued January 15th, the same date as the DWP press release, he attempted to couch his characterization of the increases as “fair and reasonable” in officialdom-speak:

Reasonableness is an opinion held by rate-setting public officials performing a specialized duty to the public interest. The essence of this opinion is whether the rates charged are equitable to the many competing interests facing a monopoly utility.”

Nice to know how public officials interpret the meaning, but how about the public’s perspective?

Edwards wasted no time in using Pickel words to promote the city’s objectives. She should have paid him. Endorsements like that are worth money.

Pickel can redeem himself if he counters the DWP’s press release with a very public and unambiguous statement criticizing Marcie Edwards and her masters for leveraging his ill-conceived, and apparently nuanced, “fair and reasonable” characterization of the rate increases.

If not, it is time for the Neighborhood Councils to issue a statement of “no confidence” in Doctor Pickel’s ability to represent the public.

(Paul Hatfield is a CPA and serves as President of the Valley Village Homeowners Association. He blogs at Village to Village and contributes to CityWatch. The views presented are those of Mr. Hatfield and his alone and do not represent the opinions of Village to Village or CityWatch. He can be reached at: [email protected].)

-cw