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LADWP to Begin Water and Power Rates Review Process Summary of Board Action

LADWP to Begin Water and Power Rates Review Process

Summary of Board Action
On May 19, 2015, the Board of Water and Power Commissioners began the process of reviewing water and power rates following a presentation by PA Consulting that evaluated the LADWP’s 5-year revenue requirements. The Board directed LADWP staff to bring back a water and power rates proposal within 30 days that addresses needed investments to meet revenue requirements, keeps rates low for customers and competitive with other utilities, and is designed to incentivize and encourage conservation.

Board President Mel Levine said the rates plan should clearly state how the proposed rate changes will provide needed revenues for investing in LADWP’s aging infrastructure, continuing the power supply transformation to meet legal and regulatory mandates, expanding the local water supply, and improving customer service. The plan will also show how LADWP’s water and power rates compare to those of other utilities, and what portion of the new revenue will be spent on infrastructure, water and power supplies, and labor.

General Manager Marcie Edwards said staff is prepared to develop a 5-year proposal and bring it to the Board in 30 days. The proposal will clearly show how the necessary new revenue translates into costs to our customer.  The review process will include public outreach, presentations and discussions with customers and stakeholder groups, plus time for consideration by the Board, City Council and Mayor.

The Office of Public Accountability/Ratepayer Advocate supports regular rate reviews, and also explained that they are hiring an independent rates consultant to assist in the transparent review of the rates proposal.