LADWP to Hold Community Meetings to Discuss Proposed 2-Year Power and Water Rate Changes

Legal Mandates and Aging Infrastructure Driving Need for Rate Increases

 April 20, 2012

LOS ANGELES — The Los Angeles Department of Water and   Power (LADWP) will hold a series of community meetings throughout the city   beginning April 25 to educate and inform customers regarding proposed power   and water rate changes needed over the next two years.

The proposed changes are necessary to meet a series of   regulatory mandates that affect much of LADWP’s existing energy and water   supplies, and to invest in replacing aging infrastructure to maintain   reliability for LADWP’s 1.4 million electric customers and 657,000 water   customers.

General Manager Ronald O. Nichols and LADWP Senior   Managers will present the proposed power and water rate changes during the   upcoming meetings, answer questions and take comments. “We began a   conversation last summer regarding the fundamental reasons why LADWP needs to   increase water and power rates,” Nichols said. “A lot has happened in the   past year; legal mandates that were unclear have come into focus. Aging   equipment has gotten older and deferred costs are mounting. A ratepayer   advocate has been appointed and is at work reviewing these proposals.”

The proposed rate change is most critical for power.   Legal mandates are driving the need to rebuild or replace over 70 percent of   LADWP’s existing energy resources and generation. In the next 10 to 15 years,   LADWP will need to expand renewable energy to 33 percent of the power   provided to customers; transition out of coal generation and replace it with   a mix of renewable energy, natural gas and expanded energy efficiency   measures; and rebuild aging generating units at three coastal natural gas   power plants.

The power rate proposal requests a 4.6% increase   beginning July 1, 2012 and 5.9% effective July 1, 2013 for a total of 10.5%   over 2 years, an increase of 1.4 cents per kilowatt-hour (kWh) to the current   average rate. For the typical residential customer, using 500 kWh, this would   add $3.35 per month to their current $65.79 monthly bill.

The proposed power rates will also fund new investments   in energy efficiency programs, as a way to mitigate the potential bill   impacts. Energy efficiency is also a cost-effective way to meet environmental   mandates and improve reliability.

On the water side, the Water Quality Factor adjustment   approved earlier this year–$0.35 per billing unit (748 gallons) for mandated   drinking water quality improvements–enables LADWP to defer consideration of   an additional water rate action until later this year.

In fiscal year 2012/13, customers will see an automatic   adjustment for purchased water when the price is adjusted in late Spring. An   additional increase of about ½ percent is planned, as part of rate   adjustments that require Board of Water and Power Commissioners action only,   to support continued development of local water supply programs. These   include water conservation, recycled water, stormwater capture, and   groundwater cleanup—all of which reduce reliance on imported and purchased   water.

For fiscal year 2013/14, LADWP is proposing a 4.6% water   rate increase effective July 1, 2013, excluding the cost of purchased water,   to invest further in pipeline and related infrastructure replacement, local   water supply programs and additional water quality investments that are part   of $1.1 billion required for water quality compliance. Nichols stressed that   while action on the request was not needed immediately, the increase needs   approval this year to allow time to approve the necessary construction and   related water quality improvement contracts and hire and train pipeline   replacement crew members.

Following are the dates and locations for the regional   meetings. In addition, LADWP is planning to hold additional online webinars   and meetings that will be announced in the near future.

RSVP’s for the community meeting are encouraged, but not   required. To RSVP, please click on the link below each meeting, or call   213-367-1361.

Wednesday, April 25, 6:30 p.m. – 8:30 p.m.
  Crowne Plaza Hotel, Salon A
  601 S. Palos Verdes St.
  San Pedro 90731

West Valley:
Thursday, April 26, 6:30 p.m. – 8:30 p.m.
  Holiday Inn Express & Suites
  22617 Ventura Blvd.
  Woodland Hills 91367

Saturday, April 28, 9:00 a.m. – 11:00 a.m.
  LADWP John Ferraro Building Headquarters
  111 N. Hope St., A Level
  Los Angeles 90012

South L.A.:
Monday, April 30, 6:00 p.m. – 8:00 p.m.
  LADWP Crenshaw Service Center
  4030 Crenshaw Blvd.
  Los Angeles 90008

East L.A.:
Wednesday, May 2, 6:30 p.m. – 8:30 p.m.
  Recreation and Parks Ramona Hall
  4580 N. Figueroa St.
  Los Angeles 90065

East Valley:
Thursday, May 3, 6:30 p.m. – 8:30 p.m.
  LADWP Van Nuys Service Center
  14401 Saticoy St.
  Van Nuys 91405

West L.A.:
Thursday, May 10, 6:30 p.m. – 8:30 p.m.
  Stephen S. Wise Temple, South Taub Annex
  15500 Stephen S. Wise Drive
  Los Angeles 90077

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