Keeping Rates Affordable

 

How do LADWP rates compare to other utilities?

Historically, LADWP’s water and electricity rates have been among the lowest in the region when compared to neighboring utilities in Southern California, and the rates will remain competitive after the proposed new rates take effect. The chart below illustrates how much money a typical residential customer in LADWP’s service area has saved compared to customers using the same amount of water and power in neighboring areas and other major cities in the state:

 

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 *Data for the listed utilities only available for FY 15/16 and FY 16/17

 

What is LADWP doing to help customers keep their utility bills low?

LADWP offers a variety of programs and incentives designed to help customers use less water and electricity and save on their utility bills. These programs include rebates and incentives for all customers—single-family and multifamily residential, small and large businesses, and industrial customers—to reduce their water and energy use.

LADWP also has programs that offer free installation of efficiency upgrades for homes and small businesses that can help save electricity, water, and natural gas. More information about ways LADWP can help you conserve can be found at www.ladwp.com/save.

For qualified customers, LADWP will continue offering lower rates through the Low-Income Discount Program and Lifeline Program.

 

What efforts have been made by LADWP to reduce costs?

From February 2011 to June 2014, LADWP implemented a multi-million dollar cost reduction plan to achieve a quick and measurable impact on LADWP’s expenses, and to help keep rates reasonable in light of industry-wide operational, regulatory and financial challenges. 

As of June 2014, LADWP had saved an estimated $467 million over three years in reduced labor costs, refinancing, and other spending cuts. This amount exceeded the target by $8 million.

Additional cost savings going forward include:

  • A new labor contract with LADWP's largest bargaining unit will save $456 million over four years (through FY 2016-17), and an estimated $5 billion over 30 years.
  • Lower cost financing for water and power projects will save approximately $267 million.
  • Continued benchmarking of performance metrics will ensure cost efficiency and accountability.

 View the Benchmarking Phase I Study Presentation.

WATER RATES 

How do past and future water rates measure up?

We are working very hard to keep water rates as low as possible.  Our residential customers enjoy very competitive water rates. However, the cost of water is increasing throughout California, but we are putting our customers first by cutting costs and making smart investments.  These efforts have allowed us to keep rate increases to a minimum over time compared to other major water systems in California. After the proposed rate changes over the next two fiscal years, water rates in L.A. will remain lower than those in the region and around the state.

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*Based on available information for the water utilities listed for FY 2015-16 and FY 2016-17. Rates information not available for subsequent years for these utilities.

 

POWER RATES

How do past and future power rates measure up?

Historically, LADWP’s electricity rates have been lower than similar power utilities in the region and state but the cost of electricity is increasing throughout California. With electricity demand growing in Los Angeles, and mandates to reduce greenhouse gas emissions and increase renewable energy in our power mix, LADWP changed its electric pricing structure to promote energy conservation and efficiency during the high-demand months of summer. Even with these adjustments, our residential customers enjoy some of the best electricity rates in California and will remain low after the proposed rate changes.

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 *Based on available information for the power utilities listed for FY 2015-16 and FY 2016-17. Rates information not available for subsequent years for these utilities.

 

How do power rates compare for commercial and industrial customers?

Power Rate Comparison
January 2015

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