Los Angeles

The DWP Sees Rate Increases to Pay for Green Initiatives

Jennifer Halligan

The Los Angeles Department of Water and Power’s rates will soon be rising. The increase is part of a plan that Mayor Villaraigosa has for helping the environment, and he has stated that the increase will ensure that 20% of the DWP’s energy comes from renewable sources by December 31, 2010. The new revenue will add up to an additional $648 million per year. The money will help pay for what Villaraigosa calls “green doctors”, that will, among other things, appraise the energy-efficiency of Los Angeles residents’ homes, as well as conservation programs and a solar initiative that should create 16,000 jobs. The increase is scheduled to begin next month but rise in phases over a full year. DWP customers will be separated by how much energy they use: Tier 1 customers, or households that use very little energy, will see their rates rise an average of 8.8%, while Tier 2 customers, who use more energy, will see an increase of 16.9% to 18.9%, and Tier 3 customers will see an increase of 24.4% to 28.4%.

• Renewable sources: Natural energy resources that will be replenished naturally over time
• Revenue: Income
• Solar initiative: A California plan to help the environment by exploring and using solar (sun) energy

• In favor of the legislation: It is vital we focus on the environment, and Los Angeles needs to be more “green”. Also, this will create jobs.
• Opposed to the legislation: The DWP already provides substantial money to the city’s budget; the mayor should not be pressuring for more. This is an unfair hidden tax.

Additional Reading:

http://www.latimes.com/news/local/la-me-dwp-rates16-2010mar16,0,7870063.story