What's Up? Possibly Your Monthly Water Bill

The L.A. City Council tentatively approved a 3% water rate increase proposed by the city-owned Department of Water and Power (DWP) in a 9-4 vote. But the decision is pending a second vote next week.

DWP Chief Ron Nichols told the council the increase is necessary in order to fund nearly $600 million in reservoir upgrades, as mandated by new Environmental Protection Agency guidelines. The federal guidelines require the DWP to either cover its reservoirs or stop using them for drinking water.

If the majority of the 15-member council votes in favor of the rate increase, average customers, including residential and commercial, will see an approximate $5.67 boost in their monthly water bills. The new rates would become effective 30 days following council's approval and Mayor Antonio Villaraigosa's signature.

Council members Jan Perry, Mitchell Englander, Paul Koretz and Dennis Zine opposed the rate increases. Perry stated her grounds for objection as the DWP's failure to impose "any changes in the internal operation" of the company, namely reducing its employees' pension, healthcare and salary costs, reports City New Service. "When the department and the City Council ask the ratepayers to absorb another increase, whether it's water or power, we have to be disciplined in demonstrating to the ratepayers that we have reduced our operational costs."

While most of the increase is attributed to the cost of imported water, the so-called water quality improvement rate would account for $1.71 of the price hike.