---

 [ ARCHIVE ](https://www.citywatchla.com/index.php?option=com_content&view=category&id=16)

#  Standby for Shocking DWP Electricity Costs by 2020!!!

August 02 2012

Written by Jack Humphreville.

<a class="a2a_button_facebook"></a><a class="a2a_button_twitter"></a><a class="a2a_button_email"></a><a class="a2a_button_print"></a>[](https://www.addtoany.com/share)

 [Comments](#disqus_thread)

![](https://www.citywatchla.com/images/stories/Aug-2012/cw1062q.png)LA WATCHDOG - Our Department of Water and Power is proposing to increase our power rates by almost 12% over the next two years.

In May, the DWP presented Dr. Frederick Pickel, the Ratepayers Advocate, with its 105 page Power System Rate Proposal, along with 14 Appendices. Since then, Pickel has been working with PA Consulting, a highly respected firm very familiar with DWP, in analyzing the proposed rate increase. He expects to [**release his findings during the week of August 20,**](https://www.ladwp.com/ladwp/faces/wcnav_externalId/a-fr-pr-rpts?_adf.ctrl-state=xkbozccpp_4&_afrLoop=277956235699180) shortly after the DWP Board of Commissioners is scheduled to approve the rate increase on August 15.

And on September 19, the City Council’s Energy and Environment Committee is scheduled to begin its review of the proposed rate increase.

Underlying this double digit increase is the need to fund the Power System’s Power Reliability Program (read infrastructure and power poles), salary and benefit increases, and most significantly, its power supply replacement program and other mandated environmental initiatives.

Over the next two years, the Power System is projecting capital expenditures of over $3.1 billion, 75% of which will be funded by newly issued debt. This, in turn, will increase the Power Systems debt ratio to 62%, significantly higher than the 50% ratio several years ago, seriously endangering its AA- (Double A minus) credit rating.

But these capital expenditures are chump change compared to the capital expenditures that are going to be required to meet the state’s unfunded environmental mandate that 33% of DWP’s power be generated from renewable resources by 2020.

And, as a result, it would not be surprising if our power rates reached 25 to 30 cents a kilowatt hour by 2020, an increase of 100% to 125% from our current rate of 12.7 cents.

In the upcoming review and analysis of this rate hike, we need a better understanding of the many components driving the rate increase and whether there is a disproportionate impact on homeowners.

But we also must demand TRANSPARENCY.

We have the right to know what rates will be in 2020.

We have a right to know whether DWP is an efficient organization. This will require ‘benchmarking,” a recommendation in the last two charter mandated Industrial, Economic, and Administrative Surveys, a move vigorously opposed by Union Bo$$ d’Arcy.

We have a right to know about “DWP’s Gold Plated Jobs” (a term coined by the editorial board of The Los Angeles Times) as well as the IBEW Labor Premium that costs Ratepayers an estimated $250 million a year. And that does include the impact of overly restrictive work rules.

We have the right to know why DWP’s benefits are so much more expensive than those of City workers, a request made last August by Council Members Bernard Parks and Jan Perry, the elected official most responsible for our Ratepayers Advocate. (Thank you!)

We have the right to know about City Hall’s pet projects, whether it is the Los Angeles River, Griffith Park, the Headworks Reservoir and River Supply Conduit, or burdening DWP with undue costs or responsibilities.

We have the right know about the dumping of 1,600 surplus City employees on DWP, along with $200 million in unfunded pension liabilities that were absorbed by DWP’s already underfunded pension plan.

We also have the right to know the impact of AB 32, California’s Global Warming Solutions Act, on more than just our power and water bills.

This is our Department of Water and Power and we have the right to know what is going on.

And to date, the management of our Department of Water and Power has done a very good job of lifting the veil of secrecy and addressing Ratepayers in a straight forward manner.

And now that there is an upcoming election, we have leverage to demand that the Mayor, the Controller, and the City Council endorse and implement absolute transparency.

Note: On Saturday, August 4, 2012, the Neighborhood Council DWP Memorandum of Understanding Oversight Committee will be meeting at 8:45 AM at the Hollywood Constituent Center. Our special guest is Dr. Frederick Pickel, the Ratepayers Advocate. All are welcome.
 *(Jack Humphreville writes LA Watchdog for CityWatch He is the President of the DWP Advocacy Committee and the Ratepayer Advocate for the Greater Wilshire Neighborhood Council. Humphreville is the publisher of the Recycler -- [www.recycler.com](http://www.recycler.com). He can be reached at: lajack@gmail.com)* –cw

CityWatch
Vol 10 Issue 62
Pub: Aug 3, 2012

 [ ![LA DWP #2 (Pay Your Bill Help)](https://www.citywatchla.com/images/LADWP/dwp%20level%20pay%205-7-25.jpg) ](https://www.citywatchla.com/component/banners/click/82 "LA DWP #2 (Pay Your Bill Help)")

 ![](https://www.citywatchla.com/images/banners/signup-for-cw.png)

## Get The News In Your Email Inbox Mondays &amp; Thursdays

 Email

 [ ![Home - HHR Rent is too High - SB-2](https://www.citywatchla.com/images/HHR/AHF-rent-too-high.jpg) ](https://www.citywatchla.com/component/banners/click/104 "Home - HHR Rent is too High - SB-2")

 ---

##  Featured CityWatch Stories

 [ ![](https://www.citywatchla.com/media/yootheme/cache/e3/067m-e39a930e.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33250:missing-middle-la-city-plannings-new-approach-to-attainable-housing&catid=429)

### [Missing Middle. LA City Planning’s New Approach to “Attainable” Housing](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33250:missing-middle-la-city-plannings-new-approach-to-attainable-housing&catid=429)

MY TAKE - As if Sacramento’s relentless parade of housing-streamlining legislation hasn’t disrupted Los Angeles neighbo…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/ed/068d-ed5f9acd.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33261:zuckerberg-may-finally-pay-a-price-for-preying-on-our-children&catid=375)

### [Zuckerberg May Finally Pay a Price for Preying on Our Children](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33261:zuckerberg-may-finally-pay-a-price-for-preying-on-our-children&catid=375)

IN MY VIEW - As a mother of two children who has often been on the losing side of family battles against screen time, I…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/91/067i-910ee2d7.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33244:free-metro-who-pays-the-billion-dollar-bill&catid=312)

### [Free Metro? Who Pays the Billion-Dollar Bill?](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33244:free-metro-who-pays-the-billion-dollar-bill&catid=312)

MY THOUGHTS - There is something strange happening at Los Angeles Metro. On one hand, Metro is spending millions of dol…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/a2/067c-a222052b.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33241:exclusive-john-mckinney-warns-city-hall-enforce-the-law-demand-accountability&catid=401)

### [EXCLUSIVE: John McKinney Warns City Hall. Enforce the Law. Demand Accountability.](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33241:exclusive-john-mckinney-warns-city-hall-enforce-the-law-demand-accountability&catid=401)

THE BOTTOM LINE - Los Angeles has laws. It has prosecutors. It has billions of dollars flowing through City Hall. What…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/de/067g-dee382a9.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33248:west-la-democrats-endorse-roy-and-reitano-decline-to-back-a-candidate-in-senate-district-24&catid=401)

### [West LA Democrats Endorse Roy and Reitano, Decline to Back a Candidate in Senate District 24](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33248:west-la-democrats-endorse-roy-and-reitano-decline-to-back-a-candidate-in-senate-district-24&catid=401)

WESTSIDE - The West Los Angeles Democrats (www.westlademclub.org) met Saturday afternoon at Saint Bede's Episcopal Chur…

---

##  [ ARCHIVE ](https://www.citywatchla.com/index.php?option=com_content&view=category&id=16)

 [ ![](https://www.citywatchla.com/images/stories/Apr-2018/034e.png) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=15339:early-intervention-and-jobs-are-key-to-stemming-chronic-homelessness-in-los-angeles&catid=16)### [Early Intervention and Jobs are Key to Stemming Chronic Homelessness in Los Angeles](https://www.citywatchla.com/index.php?option=com_content&view=article&id=15339:early-intervention-and-jobs-are-key-to-stemming-chronic-homelessness-in-los-angeles&catid=16)

### [Tucker Carlson and Gay Rightwinger Blame California Wildfires On Hiring LGBTQ People](https://www.citywatchla.com/index.php?option=com_content&view=article&id=18755:tucker-carlson-and-gay-rightwinger-blame-california-wildfires-on-hiring-lgbtq-people&catid=16)

### [Anti-LGBTQ Veep Just Can’t Stop Talking about Mayor Pete](https://www.citywatchla.com/index.php?option=com_content&view=article&id=17690:anti-lgbtq-veep-just-can-t-stop-talking-about-mayor-pete&catid=16)

 [ ![](https://www.citywatchla.com/images/stories/Apr-2018/033j.png) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=15316:news-pulse-corrupt-system-reason-for-not-voting-in-2018-majority-wants-more-than-two-parties&catid=16)### [NEWS PULSE: ‘Corrupt System’ Reason for Not Voting in 2018 … Majority Wants More Than Two Parties](https://www.citywatchla.com/index.php?option=com_content&view=article&id=15316:news-pulse-corrupt-system-reason-for-not-voting-in-2018-majority-wants-more-than-two-parties&catid=16)

 [ ![](https://www.citywatchla.com/images/stories/Jan-2016/1404d.png) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=10245:dead-dog-set-on-fire-sparks-fears-for-strays-in-los-angeles&catid=16)### [Dead Dog Set on Fire … Sparks Fears for Strays in Los Angeles](https://www.citywatchla.com/index.php?option=com_content&view=article&id=10245:dead-dog-set-on-fire-sparks-fears-for-strays-in-los-angeles&catid=16)
<div data-id="1" 
	class="eb-inst eb-hide eb-emailform eb-1 eboxContentLocker"
	data-options='{"trigger":"onPageLoad","trigger_selector":"","delay":3000,"early_trigger":true,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":1,"reverse_scroll_close":true,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":10000,"close_on_esc":false,"animation_open":"slideInDown","animation_close":"fadeOutDown","animation_duration":400,"disable_page_scroll":true,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #1 - Global Email Signup Form","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog eb-formVer" role="dialog" aria-modal="true" id="dialog1" aria-label="dialog1">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<form action="https://citywatchla.us2.list-manage.com/subscribe/post?u=34d69f33624fd058ee9b56516&amp;id=4bfa422f51&amp;f_id=00d6c2e1f0" class="eb" method="post" id="mcform-1" name="mcform-1" target="_blank">
			<div class="eb-form-header"><p><img src="/images/2023/06/be-a-city-watcher.png" alt="be a city watcher" width="350" height="97" loading="lazy" data-path="local-images:/2023/06/be-a-city-watcher.png"></p>
<p>Sign up to receive our special e-news blasts on Monday and Thursday evenings!</p></div>
	
					<div class="eb-field-row">

			
			
			
			<input class="eb-input" type="email" name="EMAIL"  placeholder="Email address"  id="EMAIL" value="" required>

			
		</div>
										
	<div class="eb-footer">
    	<button class="eb-btn" type="submit" name="subscribe" style="background-color:rgba(93, 183, 93, 1);color:rgba(255, 255, 255, 1)">
    		Sign up    	</button>
    </div>
</form>			</div>
		</div>
	</div>	
</div>
<div data-id="3" 
	class="eb-inst eb-hide eb-yesno eb-3 "
	data-options='{"trigger":"onScrollDepth","trigger_selector":"","delay":0,"early_trigger":false,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":2,"reverse_scroll_close":false,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":1000,"close_on_esc":false,"animation_open":"fadeInUp","animation_close":"fadeOut","animation_duration":300,"disable_page_scroll":false,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #3 - Yes \/ No Donation Popup Box","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog " role="dialog" aria-modal="true" id="dialog3" aria-label="dialog3">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<div class="ebox-yes-no">
	<div class="ebox-yn-text">
		
		
		<div class="ebox-yn-headline" style="font-size:22px;color:#888888">
			<p>If you only give once a month, would you consider giving to CityWatch?</p>
<p>Your support fuels our mission to promote and facilitate civic engagement and neighborhood empowerment, and to hold area government and its politicians accountable.</p>
<p>Would you like to help? Even if you can only give $5, it will make a difference.</p>		</div>
			</div>
	
	<div class="ebox-ys-buttons" style="font-size: 16px;">
		
<a
					data-ebox-prevent="0"
		data-ebox-cmd="close"
				target="_self"
		href="https://www.citywatchla.com/donate"
		rel="noopener"
	
	
	
	
	class="ebox-ys-btn"
	style="background-color:#2ec664;color:#ffffff;min-width:100px">
	Yes
	</a>
<a
	
	
			data-ebox-cmd="close"
		href="#"
	
	
	class="ebox-ys-btn"
	style="background-color:#ef2345;color:#ffffff;min-width:100px">
	Not Right Now
	</a>	</div>

	</div>			</div>
		</div>
	</div>	
</div>