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MY VOICE - Electric bills across Los Angeles are rising, and many ratepayers are asking why. Behind those increases is LA100, the City’s plan to move to a carbon free electric system by 2035. The goal is ambitious and well intentioned. The cost, however, is very large, arrives early, and is not well understood by the public.
Most Angelenos support cleaner energy and a modern electric grid. What concerns residents and businesses is how quickly costs are adding up, how little clarity there is about future bills, and whether similar environmental benefits could be achieved with far less financial strain on ratepayers.
What LA100 Requires and When
LA100 comes from a City Council directive instructing LADWP to reach a carbon free power supply by 2035 that has minimal adverse impact on ratepayers. LADWP staff developed several scenarios to meet that goal, with the plan now being pursued relying on rapid construction of renewable generation, battery storage, major transmission upgrades, and technologies not yet proven at scale.
According to LADWP’s own studies, this accelerated timeline requires very large investments in the near term. Early estimates placed total costs near forty billion dollars. More recent projections exceed eighty billion dollars, with some approaching one hundred billion dollars once all system upgrades are included.
These numbers matter because LADWP is funded almost entirely by its customers. Every dollar spent eventually shows up on electric bills through base rates or adjustment charges.
Why Bills Are Already Rising
Many customers already feel that something has changed. Electric bills have increased sharply in recent years, often without clear explanation. A major reason is the growing use of non rate adjustment charges, commonly called Pass Throughs, which include fuel, renewable energy, and other costs that do not go through the same public review process as base rates.
Today, these adjustment charges make up more than sixty percent of LADWP’s total power revenue. For customers, that means most of their bill can rise without hearings or clear notice. The last City Council review of LADWP base electric rates, and therefore the primary opportunity for public input, occurred several years ago, even as overall bills have continued to climb.
Those rising system costs fall directly on ratepayers. Under the 2035 plan, average electric rates could increase dramatically over the next decade, potentially tripling or more once adjustment charges and subsidies are fully accounted for.
A Slower Path with Similar Results
California already has a statewide clean energy requirement known as SB100. Like LA100, it aims for a carbon free electric system, but with a 2045 deadline rather than 2035.
LADWP’s own analysis shows that following the SB100 timeline would achieve nearly the same greenhouse gas reductions while avoiding the sharp near term bill increases required under LA100. By spreading investments over a longer period, SB100 allows technology to mature and rate increases to remain steadier and more predictable.
The difference in yearly carbon reduction between the two paths is relatively small. The difference in cost and bill impact is much larger.
Reliability and Technology Readiness
Reaching a fully carbon free grid by 2035 depends on technologies that are still developing, including long duration energy storage, green hydrogen, and major new transmission projects. While these technologies may succeed in time, pushing them into service too quickly increases risk, especially during heat waves, wildfires, and other system stresses.
Energy Burden and Cost Shifting
As rates rise, energy burden becomes a growing concern. Customers who spend a high share of income on utility bills qualify for discounts and assistance programs. While important, these programs are funded by other ratepayers.
Under current LA100 projections, a significant share of LADWP customers could become energy burdened, leaving the remaining customers to carry a growing portion of total system costs. This raises real equity concerns that deserve open discussion.
Transparency Is Missing
Perhaps the most troubling issue is the lack of clear public communication. Many ratepayers do not know how much of their bill is tied to LA100, how adjustment charges work, or what future bills are likely to look like.
This calls for a much higher level of communication with ratepayers on the part of LADWP, including clear projections of average electric bills by customer type, plain language explanations of adjustment charges, direct comparisons of LA100 and SB100 costs and timelines, and a straightforward discussion of technology readiness and reliability risks.
Transparency is not an obstacle to clean energy. It is necessary for public trust.
A Constructive Path Forward
The City does not need to abandon its climate goals. It should, however, seek a more responsible approach that balances environmental ambition with affordability, reliability, and transparency.
Aligning LA100 more closely with the state’s SB100 timeline would reduce near term rate pressure while still achieving nearly the same climate benefits. Just as important, ratepayers deserve a clearer understanding of where costs are headed and how policy choices affect their monthly bills.
Los Angeles can lead on clean energy without leading the nation in utility bill shock. Clean energy done right requires realism, transparency, and respect for the people who ultimately pay for it.
(Jack Feldman is a retired senior manager at LADWP and a DWP ratepayer and a contributor to CityWatchLA.com.)
