LA DWP to Refund Millions in Profit


The Los Angeles Department of Water and Power is expected to credit tens of millions of dollars back to customers – as a result of a legal settlement involving accusations the City-owned utility has been unlawfully profiting from electricity sales.

Settlement documents obtained by KFI NEWS this week detail a plan to resolve three lawsuits that challenged whether the DWP and the City were within their authority to raise electricity rates while transferring about $250-million in “excess revenue” (profit) to the City’s general fund each year.

Water and Power Bill of Rights

Members of the City Council met in private session Wednesday to discuss the cases, and according to the L.A. Times, have agreed to back the settlement.

According to the documents, the DWP would return to customers through future bill credits 8% of the money collected as a result of a rate increase approved in 2016.

That’s estimated to top $52-million.

Then, the DWP would reduce by 8% any current and future electricity rate increases over the next three years, which could result in bills being reduced by hundreds of millions of dollars.

The settlement would, however, allow the DWP to continue transferring its excess to the City, but the annual amount would be capped at 8% of electricity revenue under its previous, lower rates.

Calls to the law firms that filed the lawsuits were not immediately returned.

The City Attorney’s Office and the DWP declined to comment.


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