The Los Angeles Board of Water and Power Commissioners in late October adopted a resolution directing the Los Angeles Department of Water and Power to take immediate steps to enable customers to manage their utility bills, reduce electricity and water use, and take advantage of rebates, discounts and monthly billing options.
The resolution responds to a rise in customer concerns about the rate structure and overall affordability of bills when the median customer electricity use increased by 15 to 20 percent during the most recent bimonthly billing periods compared to the same summer months in 2025, LADWP said.
According to the resolution, record-high summer and fall temperatures this year contributed to increased air-conditioning use across the city. Separately, electric rates for LADWP increased by 7 percent since last year, driven mainly by incremental investments in system reliability that have contributed to a sharp drop off in power outages since 2024, the public power utility noted.
The resolution also cites increases in sewer and solid resources fees charged by LA Sanitation and Environment, which are included on LADWP bills, as factors contributing to higher customer bills.
The Board’s action directs LADWP to:
- Suspend residential water and electricity service disconnections for non-payment through the remainder of 2026, without limiting safety shutoffs.
- Review the electric rate ordinance and develop recommendations addressing rate factors, levels, tiers and seasonality, while prioritizing reliability, affordability, sustainability and equity.
- Examine policy options and alternative rate structures, including potential City Charter amendments, related to limitations imposed by Proposition 26.
- Increase promotion of energy efficiency and water conservation programs that can help customers permanently reduce consumption and bills.
- Expand outreach about bill management resources, including strongly encouraging customers to opt for the Level Pay program, especially new customers and customers visiting LADWP service centers.
- Provide eligible residential customers opportunities to enroll in the Power Savers smart thermostat program, which offers financial incentives for reducing electricity use during limited periods of grid strain.
- Inform customers regularly about their electricity and water use, conservation opportunities and relevant LADWP programs, including benchmarking against prior use and similar neighbors.
- Alert customers annually about electric and water rates, and tiered usage before hotter summer temperatures, including information sent to residential customers no later than June 1st each year.
- Review the EZ-SAVE Low Income and Lifeline Discount programs and recommend options to better assist income-eligible customers.
- Enroll new customers in paperless billing and offer existing customers the option to convert to paperless billing.
“This resolution puts customer communication and access at the center of our affordability strategy,” said David Hanson, LADWP Interim General Manager. “We will continue to work to ensure customers understand their usage and how they are relevant to rates. We also want them to know what assistance is available to help manage their bills and lower their usage through conservation, efficiency and payment management programs.”
LADWP has many energy efficiency and water conservation offerings to help customers permanently reduce their use and bills, including California’s highest residential solar payments; turf replacement rebate of $5 a square foot; efficient heat pumps; attic insulation; free thermostat controllers; and leak detection units. LADWP also offers ways to manage bills without late fees or interest, including Level Pay (which has no low-income requirements), EZ SAVE, Low-Income and Lifeline Discount programs.
