DWP Says Drought Is Costing Them So They Need To Raise Rates

LOS ANGELES (CBSLA.com)   —  The drought means Californians are using less water.

Less consumption also means less revenue for the LA Department of Water and Power.

The DWP has decided to raise their rates.

CBS2's Randy Paige finds a lot of consumers and customers are not happy about using less and paying more.

DWP customers have done such a good job of conserving water -- they exceeded expectations -- they have lower water bills to show for it.

"They're all saving money right now," says DWP's CFO Jeff Peltola.

He admitted to Paige there is a catch with all the conserving. Because DWP customers were using less water, the utility is unable to cover all their costs. So consumers will find themselves paying a little bit ore starting January 1.

"To ensure that we have enough money to fix our leaks, to have customer service, all those different things," says Peltola.

DWP says the average consumer saved about $5 on each bill. The rate hike will will raise the rate by about $2. So they said the average bill be about $3 less than it was before the drought.

"I think it's unfair if we're using less water and our rates are going up just cause they cant pay the bills seems like a problem at the top level not that the people should have to pay," said one consumer.

But DWP customer Ken Wong says he doesn't mind the increase.

"They have fixed expenses and they can't reduce it without laying off people so that's not good," said Wong.

Paige reports there could be more hikes to come. In December, DW{ will ask for a slightly larger rate increase -- they say -- to fix its aging infrastructure.