Rate increases and infrastructure improvements were the topics at the last PRNC meeting on September 6, 2011. Victoria Cross, LADWP Neighborhood Council Liaison, made an informational presentation highlighting the need to replace power poles more often than every 140 years, cables every 160 years and water pipes every 340 years. Further, she noted that the DWP is mandated to move to renewable sources of energy and water by law. She indicated that DWP rates are among the lowest, utilities across the state are raising rates for the same reasons, and presented budget information showing DWP cost cutting. View a copy of her presentation.

In spite of her presentation, stakeholders were skeptical. One complained that the DWP had reduced solar incentives and was slow to process applications. Ms. Cross indicated that the DWP had been swamped with applications and had reduced the program as a result.

Another stakeholder expressed concern about ballooning pension costs, identifying that in the private sector pensions are a thing of the past, having been replaced by 401ks. When is the public sector going to get equivalent benefits? Others caught on to this question and wanted to know how much of the proposed rate increase was planned for pensions and salaries. After hearing that the answer was 20%, DWP union contracts would not be negotiated again until 2014, and the union is particularly strong, he wanted to know how he could get a job with the DWP! He was informed there’s a hiring freeze.

The presentation called for a proposed water increase of 4.2% in the first year, increasing to more than 15% in three years and a power increase of 6% in the first year, escalating to more than 16% in 3 years. Ms. Cross confessed it would be unlikely that any rate increase would be passed this year. You can take the DWP Rates Process Online Survey at http://www.ladwp.com