Your LADWP Electricity Bill Could be 37% Higher in 4 Years
During a Thursday meeting of the L.A. City Council Energy and Environment committee, members learned of the Department of Water & Power's plans to increase electricity rates by 37% over the next four years, according to the LA Times. Part of that includes Mayor Antonio Villaraigosa's carbon surcharge, which could up customer's bills by 9% to 28% to increase the amount of renewable energy used in the city to 20% by the end of 2010.
Money from the increased rates would also help avoid a downgrade in the Department of Water & Power's bond rating. The utility is currently losing around $6 million a week, noted the New York Times.
However, a consulting firm hired by LADWP said Thursday that the five-year plan "showed that no reduction in reliance on coal was planned and the utility was bound by contracts to continue using coal," reported Ron Kaye, the former Daily News editor turned community activist. "The consultants said an increase of .5 to .8 cents was needed shortly to protect DWP's bond rating because of its intention to borrow huge sums of money in May."