DWP Calls for Immediate Increase in Water Rates to Fund Water Quality Projects*

Click to enlarge; courtesy of LADWP.

Federal and state drinking water standards that require the Department of Water and Power to cover reservoirs, build treatment plants and reduce chemicals in the water will cost about $600 million in the coming years, but the utility will not be able to afford those projects without an immediate increase in water rates, DWP General Manager Ron Nichols said today.

The bump in water rates would basically be the first part of an increase DWP officials have sought since June. At that time, the DWP said it would seek a 15.3 percent increase in water rates and a  16.8 percent increase in power rates, spread out over a three-year period.

DWP staff had sought to have those price hikes in place by Nov. 1. Now that that date has come and gone without any action, Nichols said DWP needs to see an increase in its water quality cap by January in order to move forward with projects that will bring the utility into compliance with federal mandates.

Under this proposal, the water quality rate factor would increase from 50 cents to 85 cents per one billing unit. This means that the average Angeleno would see his bill increase $1.44 per month in fiscal year 2012-13 compared to what was paid in 2010-11. Small commercial customers would see an $11.95 monthly increase. In total this would represent a 3 percent increase in water rates.

Angelenos have paid less this year in water rates, which means the average bill would increase from $40.30 a month to $45.91. In the  last fiscal year, the average water bill was $44.47 per month.

The additional revenue would pay to bring Silver Lake, Ivanhoe, Upper Stone Canyon, Elysian and Los Angeles reservoirs into compliance.

The Board of Water and Power Commissioners is expected to vote on the proposal in two weeks. DWP officials hope the Los Angeles City Council signs off on the increase in January, once the ratepayer advocate is in place.

*Update: Jack Humphreville, president of the DWP Advocacy Committee, said he supports the plan.

“I’m prepared to endorse an interim rate increase of 5 percent, provided however it’s subject to the review of the ratepayer advocate and once the ratepayer advocate is chosen,” he told The City Maven.

“Quite frankly, I like Ron Nichols. I think he’s been very square with us. They’ve just been a lot more open and transparent … I don’t think the city council should be further delaying this rate  increase. They shouldn’t delay it — it’s not unreasonable.”