LA Utility Taps Muni Market as Buyers Weigh Wildfire Legal Risk

Workers with the Los Angeles Department of Water and Power work among debris of fire-ravaged homes in Pacific Palisades in 2025.

Photographer: Genaro Molina/Los Angeles Times/Getty Images

Los Angeles’ water and power utility is tapping the municipal bond market with its first offering since a judge ruled last month that the utility must face hundreds of lawsuits faulting its response to the devastating 2025 Palisades Fire.

The Los Angeles Department of Water and Power — the largest municipal electric utility in the US — plans to sell $400 million in power revenue bonds this week. The borrowing comes during a quiet stretch for issuance otherwise, with only about $6.4 billion of muni deals scheduled in the period, according to JPMorgan Chase & Co.