DWP Blames Rebate Delays on Backlog

Rebates promised by Los Angeles for new energy-saving heating and cooling systems have been delayed for months by an unexpected backlog, frustrating residents and contractors.

About 2,000 customers who applied for rebates under the Department of Water and Power program are still waiting.

In response, the DWP plans to deploy a task force next week to process the applications.

Fueled by California’s energy crunch last year, more than 7,500 residential and commercial customers who installed the new systems applied for the rebates--six times more than DWP officials expected.

“We’ve been pretty much swamped,” said Steve Matsuda, an assistant director at the DWP. “When we started we anticipated a good level of participation, with maybe a couple of thousand jobs for the year. Then with the energy crisis, there was a lot greater interest. We got unprecedented response.”

The delays have plagued contractors such as Brett Hoffer of Conditioned Aire in Northridge, who said he gets calls from angry customers demanding to know when their checks will arrive.

“They want to know where their money is, and I don’t blame them. Some of them have been waiting six or seven months,” Hoffer said. “My business is 95% referrals, so this could really hurt our reputation. It’s making us look bad.”

The rebate program offers financial incentives to heating and air-conditioning contractors for installing systems with energy efficiency levels that exceed current requirements.

The rebates, which contractors pass on to customers, range from $600 to $1,000.

“They were large incentives--the largest we’ve ever paid,” Matsuda said.

State funding helped boost rebate amounts, which are determined by the size and energy efficiency of the equipment.

The program requires that installations be verified by telephone or field inspection, which also slows things down, he said.

The situation has frustrated customers such as Thomas Morton of North Hills, whose new system was installed Aug. 15 and who is still awaiting his check.

Morton said the hefty rebate was the deciding factor that prompted him to buy a more energy-efficient unit rather than service his old one.

“It was definitely an incentive, but I probably wouldn’t have bought the new unit if I knew it would take this long to get the rebate,” Morton said. “I mean, how long does it take to cut a check?”

The current rebate program concludes at the end of March, when DWP officials expect to consider new incentive plans.