Richard Katz: LADWP’s New Board President on Priorities & Challenges

Richard, earlier this year, Mayor Bass appointed you to the Board of Commissioners of LADWP and immediately you were elected its President. What enticed you to accept this challenging public role?

I ask myself that question almost every day, David. Maybe it’s partly because people said it couldn’t be done. But really, I’ve had a varied career and worked in many areas. I did water legislation in the state legislature, negotiated the Colorado River deal for California, and helped Governor Davis during the 2000-2001 energy crisis. So, I’ve been involved in these issues before.

I think the LADWP is uniquely positioned to be a major player for change in the energy sector. It has already been in many ways, but I see huge, game-changing opportunities ahead if we can navigate the international events coming our way in the next decade.

Re game changing LADWP opportunities, in a recent interview, former GM Marty Adams shared that the decision to convert the Intermountain Power Plant to hydrogen power was a career defining moment for him. Update our readers on where operationally this energy conversion project stands and its significance for LADWP?

If anything, it’s more important now than ever. It was clear we had to get off coal—environmentally, it was hurting too many people. But we also needed to generate the kind of power LA requires, and we had to be innovative about it. About four or five weeks ago, Janice Quinones, our new CEO, and I visited the Intermountain Power Plant in Utah. It’s in a remote location, but it's critical from an energy standpoint. We’ve phased out our last coal plants there. The facility is being rebuilt to run on green hydrogen starting next year. Once fully operational, it will generate 840 megawatts of clean power.

One of the coolest aspects of the project is hydrogen storage. There are naturally occurring salt caverns on the property—massive enough to fit the Empire State Building inside. These caverns are perfect for storing hydrogen without needing added chemicals. We already have two caverns ready and hope to use up to 16 eventually. Over 2,000 workers are involved in the rebuild, and we’re incredibly proud of their safety record. Two of the coal-fired units are being rebuilt, with the other two set to begin reconstruction by the end of this year.

Marty Adams often asserted that green hydrogen is a "silver bullet" for a clean energy transition, Intermountain helped to open the hydrogen market in California. Speak to the partnerships, like ARCHES, that are accelerating the hydrogen market in California ?

We’re optimistic. Bringing Intermountain online will not only show the world that it’s possible but will also lower prices and help establish the hydrogen market, starting here in California. ARCHES is a joint venture with federal involvement, and they’re working on converting hydrogen to power in partnership with Intermountain, using our transmission lines to bring the power to Southern California and hopefully other parts of the state. Beyond energy, DWP is also leading the charge on water reclamation and recycling. In Southern California, partnerships are key to solving water issues, and DWP has led that ongoing conversation. It’s a regional problem, not just an LA problem.

VXNews recently interviewed Stephen Tucker from the Water Replenishment District; he highlighted the need for SoCal’s water agencies to collaborate on the management of regional water challenges & investments in replumbing metro Los Angeles. How confident are you that such cooperation is possible?

I’m confident it’s possible. How quickly it’ll happen, though—that’s a different story. I’ve brought together contentious groups before, like when we formed the MTA or negotiated the Colorado River agreement with seven basin states and the Feds. Urgency breaks down old barriers, and the problems we’re facing, particularly water and energy, are urgent. For example, if we want to bring wind or solar power from Utah or Montana, it’s going to require multi-state cooperation.

There’s also a history between LA Sanitation and DWP, but we’re working through it by partnering on facilities for reclaimed water. We're exploring some interesting projects, like water reclamation in Sepulveda Basin—something that fulfills a vision from legislation I worked on in the 1980s. The future is here, and we just don’t have much time to wait.

On that note, VXNews will be featuring soon interviews with officials from Long Beach discussing offshore wind and the Pier Wind project. How involved is DWP in realizing the promise of offshore wind?

We’re monitoring them closely. Other groups are a bit more advanced in those discussions than we are. But we’re certainly aware of the challenges, especially given the importance of the Port of LA and Long Beach, which serve not just Southern California but the entire country. 

We all remember the images of ships stacked up outside the Ports of Los Angeles and Long Beach a couple of years ago. Long Beach, in particular, is the top location for goods and services arriving from overseas. We must ensure that the port operates at its maximum capacity—not just for our own economy but because about two-thirds of the goods that come through the port are destined for the rest of the country, not just for California. It's a critical shipping lane that we must help maintain and ensure its ongoing viability.

This summer brought record-high temperatures across Southern California, which led to sporadic power outages, even in LA neighborhoods like Griffith Park. Share how DWP is responding to these extreme climate-related power challenges to the grid?

As you know, we're not likely to see a decrease in these extreme heat events—if anything, we'll see more in the near future. We need to be prepared for that. I’m very proud of the women and men at the DWP who responded to thousands of small outages. Many people wondered why one house or block would lose power while another didn’t. We strive to restore power within 8 to 12 hours whenever possible, though it depends on the circumstances.

What made these outages different is that our equipment overheated. People asked, "Why don’t you just turn off the equipment when it’s not being used?" But the problem is, when it’s 105 degrees at night, no one turns off their air conditioning, which means equipment is running 24/7, putting a constant strain on the system. That’s what caused the spot outages. Fortunately, we didn’t experience massive blackouts like those on the East Coast, but there were localized outages.

We’re working to become more resilient, respond faster, and upgrade equipment wherever we can. Another improvement is the implementation of after-action meetings, which we started just two weeks ago. These involve all senior DWP staff and focus on lessons learned—what worked, what didn’t, and how we can improve. We had a follow-up meeting this past Monday to review progress. We're working to make sure crews are available when needed, and we're learning as we go. While our goal is to prevent any outages, if they do happen, we aim to restore power as quickly as possible.

Electric vehicles (EVs) are increasingly being driven in California, and recharging them is necessarily drawing more & more energy from the grid. Is LADWP ready for that increased demand?

I'd like to say we are, but we all know we're not there yet – we're getting there. One of our key priorities now is figuring out how to get there. It's tough to predict future demand, especially with so much talk about data centers, AI, and other developments. I don’t think LA will face major concerns with data centers because land here is just too expensive for that. But you're right—our focus needs to be on ensuring that the grid is reliable and capable of handling the load and customer needs.

Part of our preparation for events like the Olympics and FIFA is making sure there are enough charging stations, both for people who live here and for the visitors who will come. They need to be functional, and we’re working to put those pieces in place.

Speaking of the Olympics, is LADWP seriously involved in the planning for the car-free Olympics initiative?

For the Olympics planning, yes, we are involved. Joint committees with Metro and the city are working under the mayor's leadership to ensure everything is ready. It's a massive undertaking, but the planning has been underway for quite some time. We’re cautious about adopting "shiny new things" that claim to solve all our problems—because if they don’t work, it’ll be too late to fix them. We’re focusing on proven solutions.

The women and men of DWP are experienced and committed. Our safety record is unmatched, and we’re proud of our workforce’s dedication to getting the job done. We’re pursuing every funding opportunity that’s not yet spoken for, and we’re optimistic that the LA28 Committee will raise the necessary funds for the games.

Before concluding, how do you best inform and communicate the many challenges DWP faces to the general public?

I wish I knew, David. I really do. You know, when I first got elected a long time ago, I had an early meeting with some of the California Water Agencies. They came into my office and said, "Listen, we need your help to complete the State Water Project." I looked at them—myself a 30-year-old kid who thought I knew all the answers—and said, "What do you mean complete the State Water Project? I turn on my tap, and water comes out. What's the problem?"

Unfortunately, a lot of people don’t think beyond that. They don’t want to, and they shouldn’t have to. So I think we need to do a better job. We do a lot of outreach, but we could do better at explaining what’s involved and how many households we serve. We have 1.5 million customers in the city of LA. That’s a lot of people to serve. There are legacy water systems in some areas that still have lead in their pipes, which we need to get rid of—not in our pipes, but in the ones serving those people. That’s unacceptable, so it’s an ongoing challenge. How do you build for the future while making sure that the
systems serving people today provide the highest quality service and product possible? But I really believe in the 10,500 people that work for DWP.