DWP chief quits suddenly
Rick Orlov, Staff Writer
H. David Nahai, the often embattled head of the Los Angeles Department of Water and Power, resigned Friday to join the Clinton Climate Initiative as a senior adviser.
Nahai, who was paid $310,000 a year, had faced a range of controversies since he was hired in November 2007, including unpopular rate increases and water conservation plans and, most recently, a series of high-profile water main breaks.
He also ran into conflicts with neighborhood activists and some of his own agency's commissioners.
But in his resignation letter, Nahai touted a series of accomplishments that included increasing the DWP's renewable energy portfolio, improving water conservation and creating jobs.
"I leave with nothing but
fond memories of my time at DWP, and immense pride at what we have accomplished," he wrote. "However, it is time for me to explore other opportunities."
Mayor Antonio Villaraigosa, in Seattle for the U.S. Conference of Mayors, issued a statement saying he appreciated Nahai's work and that he would begin a nationwide search for a successor.
"I wish him great success in his new endeavor," Villaraigosa said. "(During) his four years of service, he led the team responsible for increasing the city's renewable energy portfolio, reducing water consumption to record levels and putting us on a path to be coal free by 2020."
It is expected that Deputy Mayor David Freeman, who headed the agency from 1997-2001, will be named interim head of the department, but he would not apply for the permanent post.
Jack Humphreville, a member of the DWP oversight committee, said Nahai did have a number of accomplishments, but he also failed to recognize what neighborhoods needed and ran afoul of the International Brotherhood of Electrical Workers.
"I guess I'm somewhat cynical, but I'm not sure it will be much of a change unless the mayor reaches out to include people in the selection process," Humphreville said. "I would like to see a process where the Neighborhood Council oversight committee and business leaders were involved in the selection.
"We need someone with experience in running a major organization, who will bring a fresh look to what the DWP is doing instead of ripping off ratepayers and funding pet political projects. If we don't do that, it will just be more of the same."
Nahai was not available for interviews.
Nahai has experienced a number of controversies during his time as general manager, overseeing rate increases for both water and power service, power outages, water conservation mandates and, most recently, a series of pipeline breaks.
Over the course of the past two years, he has been at odds with neighborhood councils and members of the oversight committee that reviews DWP actions, prompting a call to create a post of ratepayers advocate that would report directly to the commission.
Also, he was criticized by the IBEW local for not doing enough to help pass the Proposition B solar initiative.
He also has been in conflict with the Board of Water and Power Commissioners, with commissioners - speaking on background - saying relations had deteriorated to the point that there was little trust on either side.
However, Board President Lee Alpert said he appreciated Nahai's years of service and said the controversies were something that came with the job.
"Every general manager and every department head is going to have controversy," Alpert said. "Things happen that are beyond his control, and things go wrong that are not his responsibility."
Councilman Greig Smith, who has been critical of the DWP's water conservation program, said he had a good working relationship with Nahai.
"Likewise, I have a very good relationship with Mr. Freeman, and I will be able to work with him as new general manager," Smith said.
Nahai is widely respected in the environmental community and has a long history of involvement with a number of organizations.
Villaraigosa appointed him as a member of the Board of Water and Power Commissioners in 2005, and he served as vice president and president of the panel.
After the illness and retirement of then-General Manager Ron Deaton, Villaraigosa named Nahai as general manager.
Nahai had practiced law in Los Angeles since 1979 and had his own law firm before taking on the DWP post. He holds graduate degrees in law from the London School of Economics and the University of California at Berkeley.
In his letter to the mayor, Nahai said he was proud of his accomplishments, including transforming how the DWP generates its power, going from 3 percent renewable energy to 14 percent and on the way to reaching Villaraigosa's goal of 20 percent by 2010.
And, while there have been a number of major pipeline breaks in recent months, Nahai said the $1.2 billion infrastructure plan has resulted in replacing 90,000 feet of pipeline with a goal of 110,000 feet - 22 miles - next year.
Also, he said the agency has been able to maintain its AA bond rating, despite the financial turbulence of the economy, as well as improving relations with the Owens Valley.
His departure leaves Villaraigosa with five vacancies among his general managers.