DWP Charged Excessive Fees, Atty. Gen. Says

Atty. Gen. Bill Lockyer filed a $60-million claim Friday against the Los Angeles Department of Water and Power, alleging that the municipal utility has been overcharging state customers for years.

In a filing with the city, Lockyer alleged that DWP used excessive unauthorized special fees to deliberately inflate monthly electric bills paid by state government entities located in the city, ranging from the Ronald Reagan Office Building to Department of Motor Vehicles offices.

Frank Salas, DWP deputy general manager, said: “The department is confident that its rates have been fair and reasonable. We will reserve additional comments until we have seen the complaint.”

The claim said the fees were used for construction of power plants and distribution facilities.

“For more than a decade, DWP knowingly overcharged the state of California in monthly electricity bills,” Lockyer said. “We want the utility to refund the money and pay penalties for taking unjust advantage of government ratepayers.”

The claim, a required step before a lawsuit can be filed, seeks treble damages for the alleged false billings. Spokeswoman Sandra Michioku said the total would be $180 million.

State law requires municipal utilities to have specific legislative authorization to collect special assessments from governmental customers, such as the state. But the attorney general’s office said DWP has been charging fees far in excess of those authorized by law.

Lockyer’s office is conducting an ongoing investigation into alleged overcharges by private and public energy providers.

During the energy crisis, DWP increased its generation and sold excess power to help keep the lights on in California. Some consumer groups and government officials have alleged that the utility took excessive profits. The utility has said its profits were reasonable.

On Wednesday, Lockyer filed a petition with federal energy regulators seeking $1.8 billion to $2.8 billion--and perhaps substantially more--in refunds from several energy companies.

Last week, Lockyer sued four companies for $150 million, alleging that they broke contracts to provide emergency power to the state’s power grid operator and sold the electricity on the lucrative spot market.

The state is asking regulators to void or modify $43 billion in long-term power contracts.

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Times staff writer Tina Daunt contributed to this report.