LADWP rates rise 7% as mayor orders billing review

Mayor Karen Bass ordered the Los Angeles Department of Water and Power to examine new ways to lower utility costs for struggling customers. The directive came after electric rates rose by 7% over the past year, prompting widespread complaints from residents who said their bills had spiked sharply.

Bass instructed the LADWP Board of Commissioners to identify specific measures to provide financial relief. She also asked the board to pause utility shutoffs for customers facing high bills through the end of the year. The board is scheduled to consider the proposal at its next meeting. Bass stated that outside efforts are needed to review the utility's operations.

Residents expressed anger over the sudden cost increases. Joyce Beaird described the changes as outrageous, while James H. Cousins noted his bill had almost doubled. Lawrence Trent Holmes said the amounts were far higher than people expected. Community activist Earl Ofari Hutchinson noted that tens of thousands of people have signed petitions demanding accountability from LADWP leadership.

LADWP interim general manager Dave Hanson attributed the high bills to a combination of factors. He explained that multiple heat waves and humid conditions pushed power consumption to near-record levels during the summer. This increased usage particularly affected customers who reached higher pricing tiers. Hanson also cited a sanitation fee increase of approximately $75 to $100 for trash collection, which is billed every two months.

The city is currently offering several programs to help customers manage their payments. Bass encouraged residents to enroll in the Level Pay Program, which averages utility costs over 12 months to create consistent monthly payments. Eligible low-income seniors and households may qualify for assistance through the Lifeline or EZ Save programs. Customers can also pay what they are able to afford immediately while the city reviews the billing structure.

According to data cited in recent reports, water rates declined slightly during the first half of the year. However, customers pay a 10% city utility tax on water and power usage, which adds to overall costs during periods of extreme heat. LADWP said it is working on rate reform but has not announced a timeline for changes. Questions remain regarding how long customers can defer outstanding balances before they become due.

Councilwoman Nithya Raman called for an independent audit of LADWP's rate structure and billing practices last week. Bass supported this call, emphasizing the need for external review. The utility stated it maintains a close eye on rates to ensure affordability. The current measures aim to address immediate financial burdens while the board evaluates long-term solutions.