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LADWP Rates Proposals

On June 5, 2007, the LADWP Board of Commissioners adopted a $4.2 billion budget that includes approximately $3.2 billion for power and $1 billion for water for fiscal year 2007-08. In conjunction, LADWP General Manager Ronald F. Deaton proposed a series of rate actions designed to address long-term power reliability issues as well as fund ongoing water quality improvements required to meet federal and state regulations. The proposed rate actions will be considered by the Board of Water and Power Commissioners this Fall following a 120-day period of public review and comment. The proposal will also be subject to an independent review administered by Barrington-Wellesley Group on behalf of the City of Los Angeles Chief Administrative Office and Chief Legislative Analyst’s Office.

Citing the need to upgrade critical infrastructure that is between 40 and 70 years old, LADWP officials proposed funding a multi-year Power Reliability Program through a new power reliability surcharge as well as a base rate increase – the first base rate increase since 1992. The average residential customer using 500 kilowatt-hours (kWh) per month will see an increase in their bill of $1.75 per month effective Jan. 1, 2008 under the proposal and additional increases of approximately $1.75 per month effective July 1, 2008 and July 1, 2009. Altogether, power rates would increase 9 percent over three years.

On the water side, LADWP officials proposed raising water rates by about $1 per month beginning July 1, 2008 and July 1, 2009. For commercial, industrial and governmental customers, rates would increase about $1.30 per month or higher depending on the size of their meter. The proposed rates would support further investment in water quality improvements to meet state and federal requirements that pertain to storing water in open-air reservoirs and other new mandates.

In conjunction, LADWP will hold several community workshops this summer throughout the City to provide information on the proposed rate changes and receive feedback from neighborhood, homeowners, community and business groups.

The public workshops scheduled so far include:

Please click on the following links for additional information:

Press Release

LADWP Proposed Power Rate Action Fact Sheet

LADWP Proposed Water Rate Action Fact Sheet

Presentation on Power System’s Proposed Fiscal Year 2007/08 Financial Plan, Revenue Increases and Rate Restructuring

Presentation on Water System’s Proposed Fiscal Year 2007/08 Financial Plan and Revenue Increases