Los Angeles Department of Water, Power proposes rates increase to help pay for repairs

Carlos Granda Image
Thursday, July 9, 2015
LADWP proposes rates increase to help pay for rising service costs
The Los Angeles Department of Water and Power is proposing to raise the rates for its customers from 2.4 percent to 5.4 percent over five years because of much needed infrastructure repairs.

LOS ANGELES (KABC) -- The Los Angeles Department of Water and Power is proposing to raise the rates for its customers from 2.4 percent to 5.4 percent over five years because of much needed infrastructure repairs.

DWP officials says its infrastructure is crumbling for both water and electricity, and it needs more money to fix those problems.

During a meeting on Wednesday, the department said 90,000 power poles are more than 60 years old, and some pipes are as old as a century, which is way past their projected lifespan.

In order to keep up with the rising costs, DWP would need $900 million for its power service and $230 million for its water service.

Under the proposed plan, the average user would see their cost go up $4.75 a month next year and $23 by 2020. But since DWP sends bills every two months, customers' will see their bills go up $9.50, and $47 by the project timeframe.

The proposed plan is in its early stages and would need to head to the City Council and Mayor Eric Garcetti for the final decision.

City News Service contributed to this report.