Easy to Use Internet Tool Will Help Customers Understand and
Anticipate Effect of Proposed Rate Increases on Their Water & Electric Bill
To help customers understand the potential cost of proposed electric and water rate changes, the Los Angeles Department of Water and Power has created an online user-friendly rates calculator that enables customers to compare the impact of the proposed rate increases against their average monthly bill.
The rates calculator provides a tool to help customers determine the potential impact of the rate changes based on their historic household or business electricity and water use.
For over a year the LADWP has been conducting public outreach to inform its customers about the fundamental reasons that power and water rate increases are needed. In April, the LADWP announced proposed power and water rate increases that will pay for critically needed investments to meet legal mandates and replace aging infrastructure.
“LADWP is facing an unprecedented set of legal mandates that affect much of the city’s traditional energy and water supplies,” said LADWP General Manager Ronald O. Nichols. “On top of that, our infrastructure is old and getting older, and requires increased investment to maintain the reliable service our customers have counted on for a century. As a public utility, one of LADWP’s guiding principles is to keep power and water rates competitive. While the proposed increases will raise rates, they will still remain well below those of neighboring utilities,” Mr. Nichols said.
On the power side, the average increase across all customers will be about 1.4 cents per kilowatt hour (kWh) over the two years, or about 10.8%. For typical residential customers using 500 kWh per month, the increase will be about one-half that, or 5.4% in total over the two years, which is about $3.55 per month on the typical residential bill of $65.79.
The average water customer would see their rate increase approximately 4.8% over two years, excluding a temporary pass-through increase for purchased water due to this year’s near record dry winter. The additional revenue will allow the LADWP water system to ramp up investment in developing local water supplies to reduce the city’s reliance on more expensive imported water purchases from the Metropolitan Water District, replace aging infrastructure, and meet state and federal water quality regulations.
The power and water rate proposals are currently being reviewed by the LADWP Ratepayer Advocate. They are expected to be considered by the Board of Water and Power Commissioners in August, and thereafter by the City Council.
To learn more about the 2012-2014 rates proposal and use the online rates calculator, please visit www.ladwp.com/rates.