LA Mayor Orders DWP Audit, Bill Relief After Rates Jump 7%

Electric rates for Los Angeles Department of Water and Power customers rose 7% compared to the previous year, according to data cited in a recent report.

The increase has triggered widespread complaints from residents who say their monthly utility costs have surged. Joyce Beaird called the recent billing "outrageous." James H. Cousins stated his payment "doubled almost." Lawrence Trent Holmes added that the bills are "way, way, way more than people would expect them to be."

Mayor Karen Bass responded by directing the LADWP Board of Commissioners to examine methods for reducing the financial burden on customers. She also called for outside efforts to investigate the utility. Councilwoman Nithya Raman made a similar request last week, asking for an independent audit of the rate structure and billing practices.

Bass announced immediate measures to assist customers. She stated that residents can pay what they can afford right away. Eligible low-income seniors and households may qualify for support through the Lifeline or EZ Save programs. The mayor is also encouraging enrollment in the Level Pay Program, which spreads utility costs across 12 months to smooth out monthly payments.

Bass asked the board to pause utility shutoffs for customers facing high bills through the end of the year. The board is scheduled to consider that proposal at its next meeting.

LADWP interim general manager Dave Hanson attributed the high usage to multiple heat waves and humid conditions during the summer. He said these factors pushed power consumption to near-record levels. Hanson noted that customers running fans and air conditioners reached higher pricing tiers, which increased their total costs.

"I think at this time of the year, people are looking at usage. It's not so much the rate as it is the amount of electricity that they're using when they're running fans, they're running air conditioners," Hanson said.

Hanson also pointed to a rise in sanitation costs. He estimated the increase in trash fees at between $75 and $100. He said that combining this rise with high summer usage results in large bills every two months. Hanson said the utility monitors its financial services office closely to keep rates as affordable as possible.

Community activist Earl Ofari Hutchinson said residents are frustrated and angry. He noted that tens of thousands of people have signed petitions demanding accountability from LADWP leadership.

Questions remain about how long customers can defer outstanding balances and when those amounts become due. LADWP stated it is working on rate reform but has not set a timeline for changes. Water rates declined slightly in the first half of the year, but customers still pay a 10% city utility tax on both water and power usage.