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Electrical Rate Hike Proposed For LADWP Customers

LOS ANGELES ( — Los Angeles Department Of Water and Power customers may soon be looking at higher electric bills, if a rate increase is approved by the Los Angeles City Council.

The Los Angeles Board of Water and Power Commissioners approved a two-year rate hike on Wednesday that would increase the DWP's system average rate by 11.1 percent, or 1.4 cents per kilowatt-hour, over two years. The rate increase needs final approval from the Los Angeles City Council.

According to the LADWP, the proposed increase would increase a typical electrical bill by 5.5 percent over two years. In the second year of the rate increase, residents would pay an extra $3.65 on top of the current average monthly electric bill of $65.79.

The rate increase is being proposed to allow the LADWP to comply with legal mandates for reduced energy consumption, increased renewable energy use and the elimination of ocean water use at coastal power plants, according to a department statement. The department would also be able to improve infrastructure and expand efficiency initiatives.

"It is never easy to raise our customers' rates, but the department has made the case that these investments are needed to comply with legal mandates and to invest in replacing aging infrastructure that is essential to maintaining reliable service to our customers," said board President Thomas Sayles in a statement.

(©2012 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

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