Water & Power Rates Request 2016-2020
Frequently Asked Questions
Why does LADWP need a rate adjustment?
The Los Angeles Department of Water and Power (LADWP) is requesting a five-year rate change that seeks small water and power rate increases each year based on the following priorities and key principles:
• Replace Aging Water and Power Infrastructure: Over a century of delivering Water and Power requires major and sustained investment in replacing aging infrastructure to ensure reliability.
• Transform Water and Power Supplies: LADWP water rates must support greater water conservation and expand our local water supply to reduce reliance on more expensive, purchased water. Legal mandates require a complete transformation of our power supply.
• Improve Customer Service: LADWP is working to provide high quality and responsive service, increase timeliness of bills, enhance self-service options, and improve our customers’ experience overall. LADWP will also continue to provide programs that help our customers to manage their water and power use, and save on their bills.
• Keep Rates Competitive: LADWP will make these needed investments while ensuring that our rates remain competitive with nearby water and power utilities and affordable for our customers.
How will the proposed rate changes affect my bill?
About 50% of all residential customers will see an average increase of about 3.4% for water and power on their bill each year for five years, or $4.75 more per month—about the same as the rate of inflation.
Low-use customers will have a combined water and power bill increase of 2.4%, or about $1.95 per month. High- use customers (the top 10%) will pay about 5.4% more, or $17.64 per month.
What is the process for approving the rate changes?
Once the rate plan is finalized by LADWP, the rate ordinance will need to be approved by the Board of Water and Power Board of Commissioners and the L.A. City Council. If approved by the Council, the rate ordinance must be approved by the Mayor.
When will the new rates go into effect?
LADWP expects to present the rate ordinance to the Board in mid-December 2015 and to the City Council in early 2016. The rates would go into effect 30 days after the ordinance is signed by the Mayor.
What is LADWP doing to keep rates low and save costs?
LADWP has saved $467 million over three years, exceeding cost reduction goal that was set as a condition of the prior rate increase in 2012. Savings were achieved through reduced labor costs, refinancing, and other spending cuts. Under the current labor agreement with the largest LADWP employee bargaining unit, LADWP is saving an additional $456 million over three years (fiscal years 2013-14 through 2015-16), which adds up to $5 billion over
30 years. LADWP will continue to find cost savings through process improvements, benchmarking, and other measures.
Read more FAQ’s here and see the attached English and Spanish flyers for community meeting dates.
