Statement by Los Angeles Department of Water and Power General Manager Ronald O. Nichols following today’s report by the Ratepayer Advocate Dr. Fred Pickel on LADWP’s requested two year power rate increase
“We are pleased that the Ratepayer Advocate has presented his review of LADWP’s two-year power rate request. To make this review possible, the LADWP provided more information than has ever been released in the history of the Department in connection with a rate increase. It has been an exhaustive, but important effort to honor the Charter Amendment approved by voters nearly 18 months ago, which created the Office of Public Accountability and instituted a process for independent review of LADWP rate requests.
The summary report reaffirms that the cost increases our Power System is facing to comply with legal mandates and invest in basic reliability are unavoidable and absolutely necessary. The Ratepayer Advocate recognizes that LADWP has taken significant steps to cut costs and it affirms the approximate 10% system average power rate increase proposed by LADWP. We look forward to receiving the Ratepayer Advocate’s report on requested water rates and moving forward with consideration by the Board of Water and Power Commissioners and City Council in September.
There is no doubt that there remain continued cost pressures beyond the two-year period covered by the rate proposal. The Ratepayer Advocate has addressed this issue in his report. During the next year we will be looking to refine our estimates for those mandated and critical investments. We will also remain completely committed to reducing our costs as much as possible to keep future rate increases as low as possible for our customers, while maintaining reliable service, and we will work with the City to do so.”