The long-awaited consulting report on pass-through electricity charges was released Friday, calling for an immediate 800 percent increase in the energy cost adjustment factor and increases every quarter that will raise overall power rates by more than 20 percent within a year.

The massive increases are being sought as DWP officials face intense pressure to have a revenue sream to be able to lose at least four deals to buy solar and wind energy to meet the stand-mandated goal of 20 percent renewable energy by the end of this calendar year.

For the year ending June 2009, the residential rate was 11.8 cents.

For the year ending June 2010, the residential rate per the budget is projected to be 13.1 cents.

A 2.7 cent increase is a 20.6% increase based off of the 2010 number, or 22.9% off of the 2009 number.

If you add the 2.7 cent increase to the 13.1, you arrive at 15.8 cents -- a 33.9% increase over the 2009 rate.

Click here for the full report by PA Consulting, and here is the cover letter from the CAO and CLA. 

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Comments (7)

• 2010-04-18 20:24:24 |71.160.16.xxx| James
  Bring all of your documents, records of phone calls, emails, etc to a Regular board meeting and complain like heck. One of the Commissioners should have some higher level muckety muck talk to you directly and follow up. Go back to another Board meeting until they get it right. Too bad DWP doesn't cover parking charges anymore, so add time for public transportation.
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• 2010-04-14 22:13:13 |67.49.3.xxx| Susie  - where's the green energy charge money?
  Years ago I signed up for DWP's green energy program. This was a higher rate than the regular electricity. I originally thought I was getting my electricity from solar or wind. Then later I found out DWP didn't have this power in place. When I was on the phone with DWP and asking about it and the higher price DWP said it was using the additional cost to save for getting it. What did they do with all the money DWP fleeced out of suckers like me? What a sham this whole thing is. Every council member who votes for this needs to be fired.
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• 2010-04-18 20:21:26 |71.160.16.xxx| James
  That sounds like fraud. I wonder if they had the proper "fine print" in any agreement (if any) that you had to sign.
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• 2010-03-03 18:02:55 |68.164.115.xxx| Tujunga Tom  - DWP Discount program sham
  I have been out of work for some time, and applied for the DWP "low income discount" program. I meet all the eligibility requirements. It takes DWP 90 days to process. After more than four months of no replies, I checked on the status for the 3rd time. They had "lost" my application. They keep no records of receipt of documents submitted, processing etc.... This program is clearly a PR sham.
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• 2010-02-26 15:49:20 | |Author| Jack Humphreville
  Sure sounds like we need an independent Rate Payers Advocate.
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• 2010-02-26 14:51:32 | |76.169.22.xxx| waltermooreinla  - Walter Moore
  You want to know what makes this even more outrageous? On March 1, 2010, the City Council will transfer $147 MILLION from the DWP to the City's "reserve" fund, on the pretext that the $147 million constitutes "surplus" funds. Connect the dots: the rate hike is an illegal tax hike, effected without the two-thirds vote required by the State Constitution.
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• 2010-02-26 13:26:50 | |208.127.104.xxx| acton  - Villa wants our money
  Our mayor knows he will never get a tax increase through the voters. But the best thing he can do is jump electricity rates as high as he can and move his employees to DWP's payroll. This allows them a non-voter controlled source of revenue which you can use and spend on every one of his political goals. The citizens must protest to our city Council not to buy off on the increase. But it's unlikely this will do any good. What needs to happen is the citywide recall movement to get rid of the Mayor and city Council must be supported before all of us are in the poor house with the feared doubling and tripling of our DWP bills.
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