DWP board ignores L.A. City Council, approves higher rate hike [Updated]

Los Angeles Mayor Antonio Villaraigosa’s appointees at the Department of Water and Power on Wednesday evening rejected the City Council’s proposal for a 4.5% electric rate hike, opting for a larger increase that was more in line with the amount Villaraigosa had sought for his renewable energy proposal.

 After taking a 45-minute break, the DWP board voted unanimously for an increase of 0.7 cents per kilowatt hour, which would translate into a 5.7% rate hike for residents and businesses, according to a high-level utility executive.

The City Council was planning its own 8:45 p.m. meeting to respond to the DWP’s decision.

Councilwoman Jan Perry warned the DWP board that she was willing to reject a larger increase. She accused Raman Raj, the DWP's acting general manager, of setting in motion “an Armageddon scenario’’ by threatening to withhold $73 million from the city’s struggling budget.

“I’d be more than comfortable voting no on the entire package," Perry said. “My environmental credentials are fine, so I’m not worried about it.”

[Updated, 9:25 p.m.:On a 13-0 vote Wednesday night, the City Council voted to veto the DWP board’s latest rate hike proposal, sending it back to the utility for more work.

The vote came less than an hour after the board approved a larger increase.]

-- David Zahniser at DWP headquarters

Photo: Councilman Paul Krekorian called the DWP board's actions "outrageous." Credit: Allen J. Schaben/Los Angeles Times.

Comments

[Jesse Platts]

How do we remove these people from office?

[Jack Henry]

What?! In this economy who can afford any type of rate hike? Villaraigosa is completely incompetent and disgusting.

[hvinh99]

This is a holdup give me a 5.7% rate hike or this $73 Million... TAX.. we mean.. bride.... we mean Armageddon will happen. My question is why don't DWP use this bi-annual $73 million dollar they gave to City of LA to build green energy? is this like their Profit????? and why wait until now to go green???? didn't the bill Green house GAS AB32 was sign back in 2006??? why wait the last minutes to upgrade???? when DWP had given all their profit to the city (i.e:$150 Million)

[Boo Boo]

Standing applause for the city council, words I never thought would come out of my mouth!
Let's keep our kilowatts crossed that this isn't a political show and that they stick to this.

[A Concerned American]

Wait?? Isn't the DWP a department of the city??

But they can dictate their rates to the citizens??

[Kate Barner]

Raman Raj, the Mayor and his minions at the DWP Commission have richly earned their ARROGANT reputation with no respect for the working class taxpayers or their democratically elected representatives in the City Council.

Tonight the Mayor and his Commission at DWP were shut down. It is now time for Raman Raj to be fired (he is exempt for Civil Service Protection). Mr. Raj was corrupt from the beginning with his conflicts of interest.

And the Board President should also resign. His arrogance has been exposed in the past in his handling of the pay off to David Nahai. He claimed transparency, but did not answer the basic question as to who approved the buy out of Nahai. Well that "who" was Raman Raj.

[h82w8]

This is unbelievable. Where is Tony V? Why is he hiding during this time? He should be ought there explaining to the DWP customers why he is pushing so hard for higher utility bills for all of us during a recession and unemployment above 12%.

Coward.

[Upset Voter]

Mr. Villaraigosa,
Please stop trying to clean Los Angeles of low income constituents by making it impossible for us to pay our bills. As it is, we are more than most politicians, feeling the progressive decline in the economy. All over the city you can see "for lease" signs, teachers are loosing their jobs, public services are loosing funding and yet you supported the DWP salary increase! Now you and your appointed DWP board want to increase the rates? This seems to me like these rates are more to cover expenses and generate revenue than it is to invest in green energy.

[Edmond Wong]

Bankruptcy is the only option for LA city. Another rate hike will only fuel more public resentment toward the lawmakers.

[Richard]

What joy. We have the DWP who's employees have received fat raises with the approval of the council now claiming there will not be enough money for "stability" and we have the council which was expecting to extract money from the DWP from the over payments made by the rate payers. So, its a matter of which party gets to steal from the rate payers and feed it to their cronies.

[Mike]

Since the DWP board serves at the Mayor's pleasure these people had to keep their checks coming. These people are the Mayor's puppets, and their income is higher than most of us. Raj, wants the job as General manager, and he would walk over anyone to get it. This man has no pride, and the city council knows what they are dealing with as we do also.

[silversurfer]

Where to start? How about here - the DWP funnels $220,000,000 PER YEAR over to the General Fund of the City of Los Angeles!

How many of the 3.8 Million Angelenos even know that when they are paying their exorbitant utility rates that tens of millions of dollars EVERY YEAR aren't even going towards utilities? And, this 'bait & switch' has been occuring for decades 'til I just found out about it in the past few days! How come no past L.A. Mayor or City Councilmember or DWP Chief ever told the rate-paying public that TENS of MILLIONS of their utility dollars were being transferred to the City's General Fund and had absolutely NOTHING to do with providing utilities to the consumer?

[jay]

Who is running this city?

[Hoot]

The arrogance of these DWP officials is breathtaking. They need to take paycuts and lay off staff. Only then should taxpayers be asked to shoulder some of the burden.

[Rafael A. Chavez]

That's the result of action by non-elected officials who have no loyalty to anyone except the mayor. It is a shameful act on the part of these folks and THEIR leader Antonio Villaraigosa. This is not the time to impose such an increase on the residents of this city. It is downright sinful.
For you, Mr. Mayor, who plans on making public life your lifetime career, we will remember this moment well.

[Moose]

I'm also confused about the 200 million per six months that is given from the DWP to the county. You're telling me that the county is really 400 million a year more in the hole than we thought because we depend on a promise from DWP? And that DWP is actually operating with at least 400 million extra to give away, but they still want 20-40% price hikes after getting raises last year? Or am I missing something?

[Moose]

Sorry, guess I got my numbers mixed up, it's "only" 200 million per year...

[jbduron]

Angelino's don't you get it? Commissioners are political appointees of the Mayor and are approved by the City Council! Yes the Corrupt Political Machine. Do you honestly believe they will say the N WORD? NO; to their Patron? All commissioners’ resignations are in every Mayoral administrations pocket. Re-call from top to bottom 15 plus one.