Charged up about DWP rate hikes
Re “DWP rate hikes get initial OK,” April 3
What seems never to be included in reports on Department of Water and Power rate increases is the bonus L.A. gets in the revenues collected through the utility tax. This tax is a straight percentage of the total DWP charge for electricity: 10% for residential customers, 12.5% for commercial and industrial customers.
Because the percentage does not change, it isn’t called a tax increase, but, in fact, a customer will pay more than before in utility tax after a rate increase for the same amount of energy. For every extra dollar the DWP collects, the city gets an extra 10 cents from residences and 12.5 cents from businesses. This is independent of the transfer made to the city by the DWP from revenues collected through its rates. (For residential customers, rates are on the bill’s first page; the charges for municipal services, including the utility tax, are on the second page.)
Walter Hall
North Hollywood
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People need assurances that these DWP hikes are really necessary. I have read that after last year’s hike of 2.5%, the DWP transferred $184.6 million to the city’s general fund. If this is true, we need a complete audit. The DWP was created for the good and benefit of the general public, not for the mayor and the City Council to bleed for their pet projects.
Jack and Elaine McConnachie
San Pedro
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