Advocate says proposed LADWP electricity rate hikes are 'reasonable'

Monday, January 18, 2016

Advocate says proposed LADWP rate hikes are 'reasonable'

The Los Angeles Department of Water and Power is attempting to raise electricity rates and a ratepayer advocate says the increase is reasonable.

LOS ANGELES (KABC) -- The Los Angeles Department of Water and Power is attempting to raise electricity rates and a ratepayer advocate says the increase is reasonable.

Power outages are what the LADWP want to avoid, but with an aging infrastructure, reliable electric service isn't always what customers experience. The LADWP is asking for a monthly rate increase over five years.

Fred Pickel, executive director of the Office of Public Accountability, said the rate increases are OK.

"The proposals are for increases in capital spending to improve infrastructure and also for increased conservation measures, increased operating costs," he said.

A typical single-family home along the coast using 350 kilowatt hours per month would pay about $6 more per month. In the San Fernando Valley, where usage is higher on average, about 500 kilowatt hours used by a single family would pay about $8 more per month.

The rate hikes would eventually total about $4.22 billion by the 2019-2020 fiscal year, according to a report from the OPA.

Pickel said the proposed hike wouldn't cover all of the LADWP's infrastructure needs, but if approved his office would monitor how the extra revenue is spent.