L.A. City Council approves smaller DWP hike

LOS ANGELES The increase approved Tuesday also calls for a 5 to 6 percent for businesses. It's less than what Mayor Antonio Villaraigosa wanted, but an independent analysis shows it will be enough to shield the Department of Water and Power from a bond rating downgrade.

Council President Eric Garcetti and Councilwoman Jan Perry introduced the opposing plan that calls for raising DWP rates by five-tenths of a cent per kilowatt hour for residents and businesses, and then by another one-tenths of a cent per kilowatt hour for renewable energy.

The mayor held a rally outside council chambers with union workers, environmentalists and other leaders who support the green-energy plan, which is being proposed by Councilman Richard Alarcon.

It calls for a 6-percent increase for residential customers, so Tier 1 customers would pay about $2 more per month. Commercial customers would see their bills go up by as much as $2,400 a month.

Under the plan, the cost of a kilowatt hour would go up by eight-tenths of a cent.

Villaraigosa is pushing for the rate hike to fund renewable energy projects, but the council denied the mayor's first proposal.

Villaraigosa says the DWP will be fined $300 million by the state if it does not reduce its cold usage, and he wants the council to back the Alarcon plan.

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