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The costly, hidden tax on DWP customers

The costly, hidden tax on DWP customers

The Department of Water and Power has proposed a rate increase to pay for its shift to renewable energy, and to replace such things as power poles and transformers in its crumbling infrastructure. But as this paper reported recently, about 20% of the additional revenue from electricity would be diverted to the city of Los Angeles' general fund, and become available for the mayor and City Council to use for whatever programs and services they choose. This diversion is in effect a hidden tax on ratepayers, who think they're paying only for DWP power costs. Here's the background. Los Angeles imposes a utility tax — currently 10% on residential customers and 12.5% on...

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