LADWP Rates: Los Angeles Mayor Orders Audit and Billing Relief
Mayor Karen Bass requests an independent review of the utility's pricing structure while directing the board to explore immediate financial measures for customers.
By Mateo Thompson ·
Los Angeles Mayor Karen Bass directed the Los Angeles Department of Water and Power board to examine options for reducing customer costs and requested an independent audit of the utility's rate structure. The announcement follows a surge in utility bills that has prompted calls for oversight from local council members and community leaders. Bass stated that outside parties need to scrutinize the department's operations to ensure transparency.
Residents reported substantial increases in their monthly charges. Joyce Beaird described the recent bills as outrageous. James H. Cousins noted that his costs nearly doubled. Lawrence Trent Holmes observed that the amounts exceeded what most customers anticipated. The department's interim general manager, Dave Hanson, attributed the rise to record levels of power consumption during the summer months. He explained that heat waves and humid conditions drove up usage for fans and air conditioners, pushing many customers into higher pricing tiers.
Hanson also cited a $75 to $100 increase in sanitation fees for trash collection. He stated that these costs, combined with high electricity usage, result in large bills every two months. LADWP data shows electric rates rose 7% from the previous year, while water rates declined slightly in the first half of the year. The department noted that customers also pay a 10% city utility tax on water and power usage, which adds to the total cost during periods of extreme heat.
Councilwoman Nithya Raman called for the independent audit last week. Bass echoed that request and directed the board to develop specific measures for customer relief. The mayor announced that customers can pay what they can afford immediately. Eligible low-income seniors and households may qualify for assistance through LADWP's Lifeline or EZ Save programs. Bass encouraged customers to enroll in the Level Pay Program, which averages utility costs over 12 months to create consistent monthly payments.
Community activist Earl Ofari Hutchinson said residents are frustrated and demanding accountability. He noted that tens of thousands of people have signed petitions requesting a review of the utility's leadership and billing practices. Hutchinson described the sentiment among customers as anger over the lack of financial relief despite the rising costs. The issue has become a focal point for local political discussions regarding the management of municipal utilities.
Hanson defended the department's approach to pricing. He stated that the utility maintains a close relationship with its financial service office to keep rates as affordable as possible. The department said it is working on rate reform but has not announced a timeline for changes. Questions remain regarding how long customers can defer payment of outstanding balances and when those amounts become due.
Bass asked the board to pause utility shutoffs for customers facing higher bills through the end of the year. The board is expected to consider the proposal at its next meeting. The pause would provide additional time for residents to adjust to the new billing structure while the department evaluates potential long-term solutions.
The department continues to monitor consumption levels and financial trends. Hanson emphasized the importance of understanding usage patterns during peak weather events. The city aims to balance the need for infrastructure investment with the financial capacity of its residents. The board will review the audit findings and relief options in the coming months.
