DWP proposes rate increases for water and electricity use

The general manager of the Los Angeles Department of Water and Power proposed rate increases Tuesday to pay for conservation programs, replacement of aging equipment and training for field workers to take the place of retirees.

Ron Deaton called for 3% hikes in water charges in July 2008 and again in July 2009, adding about $2 overall per month to average residential bills. Power costs would rise by 3% three times between January 2008 and July 2009, adding about $5.25 a month total to average residential bills.

Commercial rates would increase by similar percentages for water and power service, officials said, although the precise dollar figure would depend on the type of business.

Power rates additionally would be restructured under the proposal to encourage conservation: Those who use the most power would pay the highest rates.

The DWP will spend the next four months conducting public meetings on the proposed increases before the agency’s Board of Commissioners considers them in October. The City Council must then vote on the plan.

Deaton and DWP Board President H. David Nahai called the increases fair and reasonable, particularly in light of the utility’s need to replace aging equipment. Even after the increases, they said, the DWP still would charge some of the lowest rates in the state.