Both the City and State have enacted requirements that Los Angeles substantially reduce the amount of waste it sends to landfills. Moreover, this is an area where stronger environmental regulations increase the cost of providing sewage services.īecause the Bureau of Sanitation does not provide solid waste collection to apartment buildings and condominiums with more than four units, this meant that residents of multi-family buildings were subsidizing single-family homes, which was one reason the City shifted to fully funding solid waste collection through user fees. More than three-fourths of the additional revenue generated by that rate adjustment is going to maintain and expand the capital improvement program. The City adopted a new SSC ordinance in 2012. You can read more about the rate calculation, find ways to lower your charge, and find other resources to mitigate the SSC on the flyer LA Sanitation sends annually or with this link. The DWCF accounts for the prior winter’s rainy season. The average daily sewage volume also incorporates a figure called the Dry Winter Compensation Factor (DWCF). The charge uses a single base rate which is multiplied by the number of days in the billing period and average daily sewage volume. The SSC has several planned rate increases over the next few years to accommodate inflation and generate funds for constructing and maintaining waste infrastructure and facilities around the city. The Sewer Service Charge (SSC) is based on metered water usage, the same meter for general water usage. Until 2003, the City paid for the cost of solid waste collection from the General Fund rather than user fees. Under the California Constitution, enacted by Proposition 218, the City’s solid waste and sewer charges may not exceed the actual cost of providing each service. This means we cannot be lulled into a sense of water abundance based on a few years of rain after a fairly lengthy drought.Īlthough solid waste and sewer charges appear on your LADWP bill, those services are provided by the Department of Works Bureau of Sanitation (Sanitation). Unfortunately, one of the long-term effects of climate change is that the amount of precipitation we receive here in Los Angeles or from the Owens Valley will be more variable. The rate for water is set by several factors including the source of the water, your average consumption, and the particular season. A complete explanation can be found on the LADWP websiteĬoncerning water rates, the cost of purchased water makes up only a relatively small portion of your water bill. The LADWP electric rate structure is quite complex. This is one reason why, even as you use high-efficiency appliances, electronics, and lights, there isn’t always a corresponding and proportionate reduction in your LADWP bill. The infrastructure and O&M costs are relatively constant and don’t change much even if people use less water and power. For FY2017-18, the LADWP Power System had a $4 billion budget only $1.5 billion was for fuel and purchased power the Water System had a $1.45 billion budget only $114 million was for water purchases. There are three basic categories of costs: (1) the cost for LADWP to generate or acquire water and power (2) the capital costs of the infrastructure (e.g., power lines and substations water mains and water lines) that bring electricity and water to customers and (3) operations and maintenance (O&M) costs. The LADWP rates are established to recover the costs of providing electricity and power to Los Angeles residents. You can learn more about him and his work with this link. Also, this is the link to the most recent LADWP rate increase report. He has issued many reports and reviews all proposed increases. The Executive Director and rate payers advocate is Fred Pickel. While many people provide their opinion, the Office of Public Accountability (OPA) was specifically established in 2011 to serve as an independent watchdog and to explicitly analyze proposed rate increases. However, while all rate increases are approved by the board and analyzed by the ratepayer advocate, they are officially enacted by the City Council the current rate ordinances were adopted in 2016. Under the City Charter, LADWP is a proprietary department governed and managed by an independent board. Who oversees and analyzes utility rate increases?Īs you know, electricity and water are provided by the Los Angeles Department of Water and Power (LADWP). What is being done to lower utility rates?.Who oversees and analyzes utility rate increases?.Frequently Asked Questions About Utilities
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