Court hearings are ongoing to determine how to divide a $59.9 million settlement from the Los Angeles Department of Water and Power (LADWP) after a methane gas leak at the Valley Generating Station in Sun Valley. The leak affected roughly 1,300 residents within a four-mile radius.
For years, people living near the power plant reported headaches, bloody noses, and nausea. The leak was not publicly disclosed until 2020 when NASA detected it during an aerial survey. Residents say the utility knew about the problem as early as 2017 but delayed repairs and did not warn nearby communities.
Under the settlement, LADWP agreed to allocate $59.9 million to those who lived or worked within four miles of the station. However, the exact distribution plan must be approved by the court. Status conferences are ongoing, with the most recent one held on Tuesday, May 27. The case is expected to be fully resolved by mid-year.
Ruben Rodriguez, executive director of the community advocacy group Pueblo y Salud, said he hopes the settlement will “somehow make them whole” and that funds will be distributed fairly.
“We need environmental justice,” Rodriguez said. “Especially for minority communities, and we should be given the same importance as any other community.”
LADWP has also committed to demolishing outdated generator units at the Valley Generating Station. The utility will invest $20 million in community grants to support local projects that reduce harmful emissions.
“We at LADWP remain committed to operating our power infrastructure safely and reliably, in a way that instills trust and confidence in the communities where we live, work, and serve,” the department said in a statement.
Supporters of the settlement say it provides immediate help. Still, questions remain about how LADWP will change its long-term practices to prevent future leaks. Rodriguez added that this is not the first environmental threat to the Northeast Valley. He wants assurances that residents will not face similar health risks again.