Ratepayer Advocate Clears Council Committee

The nominee to become the city's first water and power ratepayer advocate cleared the first of three procedural hurdles today, gaining unanimous approval by the City Council Energy and Environment Committee.

Committee members questioned Frederick Pickel, an energy consultant, for about 25 minutes before giving their approval.

Pickel was selected last week by a citizens committee convened to appoint an executive director of the yet-to-be-created Office of Public Accountability.

The office and the position were overwhelmingly favored by voters in March. The idea is to provide city officials with objective, non-political analyses of proposals by Los Angeles Department of Water and Power to raise rates.

In December, the Board of Water and Power Commissioners approved a 3 percent increase in water rates for the 2012-13 fiscal year. The department says the increases are needed to pay for a federally mandated overhaul of the city's reservoirs, including covering open reservoirs or building replacements.

The City Council has declined to approve the rate hike until the so- called ratepayer advocate is appointed and provides his analysis.

City Councilwoman Jan Perry, who chairs the committee, warned Pickel that politicians would try to influence him. She urged Pickel to set up a formal process for documenting who comes and goes from his office.

Perry asked Pickel how he planned to communicate with the DWP. He said he would use what he called "creative tension."

"Yes, this is an advocate's role, but it has to be an advocate for solutions, not an advocate for disagreement," Pickel said, later adding, "the (job) title says advocate, but the mission is providing information to the council, the mayor, Neighborhood Councils and the public. So it's an advisory position, not really an advocate position."

Councilman Richard Alarcon took issue with that description. "Why were people believing it was going to be a ratepayer (advocate)?"' Alarcon asked. "That underminds the trust to begin with."

Asked how he planned to organize the Office of Public Accountability, which will have a first-year budget of about $1 million, Pickel said he would focus at least half of his staff on communications and outreach.

Alarcon told Pickel that Angelenos, especially members of neighborhood councils, oppose rate increases and distrust the DWP, despite the self- supporting department's efforts to explain its rationale for rate hikes.

"My prediction is that you'll find the rates are fair as compared to other like-service providers, that if we want to invest in cleaner technology, we have to increase the rates," Alarcon said. "So how are you going to increase the trust. How are they going to trust what you say, especially if what you say is the same as what DWP has been saying?"

Pickel said that was going to be his biggest single challenge.

"Both the DWP and this office have to lay out a broader communication effort so people understand the choices being made," he said.

Pickel's appointment will go before the City Council next week, Perry said. The position also needs the approval of Mayor Antonio Villaraigosa.

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