Amid growing controversy over soaring public utility bills, the Los Angeles Department of Water and Power (LADWP) has sparked further backlash by claiming there are no issues with its billing system.
Alan Marks, president of the LADWP board, stated on the 27th that “billing system errors are virtually nonexistent,” drawing a line under the recent wave of high-charge complaints.
Addressing bills ranging from $2,000 to $5,000, Marks explained that the primary cause was a surge in air conditioning usage driven by severe heatwaves. According to LADWP, only 2% of customers had bills exceeding $3,000 for the two-month period of August and September, while 64% had bills under $500.
However, skepticism regarding the fairness of the billing structure persists, as analyses indicate that progressive rate tiers and various surcharges also contributed to the sharp spike in bills alongside the weather.
Marks announced plans to significantly expand the rollout of smart meters, which allow users to monitor real-time usage. Yet, as of late last year, the smart meter penetration rate among LADWP’s roughly 1.5 million customers remained below 1%.
Meanwhile, resident pushback continues. According to CBS LA, San Fernando Valley resident Micah Reed submitted a petition to the LADWP board signed by approximately 40,000 people, demanding an independent audit.
Previously, Los Angeles Mayor Karen Bass called for an external independent audit of LADWP’s rate calculation and billing systems on the 26th.
Additionally, the utility will suspend disconnections for residential customers due to unpaid bills through the end of the year, allowing them to pay what they can afford. However, with Marks clarifying that past-due balances must still be paid in full, controversy surrounding the financial burden is expected to continue despite the disconnection moratorium.
