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City councils

Alarcon Compromise Plan Offers Middle Ground for Los Angeles Water Rate Increases

Strategic Insights

— 1 min read

The Alarcon compromise plan aims to balance the needs of Los Angeles residents and businesses while supporting the city's renewable energy goals. Introduced by Councilmembers Alarcon and Janice Hahn, the plan puts forward a small, one-time rate increase of 6% for residential customers and between 5.7% and 7.1% for commercial customers. The rate increase will only be considered after the DWP implements business- and ratepayer-friendly reforms to ensure greater transparency and accountability.

Key Takeaways:

  • The Alarcon compromise plan calls for a small, one-time rate increase of 6% for residential customers and between 5.7% and 7.1% for commercial customers.
  • The plan protects the creation of the Renewable Energy Trust Fund and ensures business and ratepayer protections.
  • The DWP will implement business- and ratepayer-friendly reforms to ensure greater transparency and accountability before considering further rate increases.
  • The plan calls for creating and implementing programs to help those hardest hit by the rate increases increase their energy efficiency and alleviate their initial costs.
  • The DWP will house a ratepayer advocate in the Office of the Controller to oversee the Carbon Reduction Surcharge and the Renewable Energy and Efficiency Trust Fund.
  • The plan will develop an economic development strategy for the Renewable Energy and Energy Efficiency Trust Fund to maximize creation of local public and private sector jobs.
  • Environmental and labor leaders, including Lee Alpert, Maria Elena Durazo, and Evan Gillespie, support the compromise plan.

Statistics:

  • A 6% rate increase for residential customers.
  • A rate increase between 5.7% and 7.1% for commercial customers.
  • Rate increases will be spread over 8 quarters to give rate-payers and businesses time to adjust to the changes.
  • The Renewable Energy Trust Fund will be creating to support the city's renewable energy goals.

Sources:

  • "Alarcon Compromise Plan Offers Middle Ground for Los Angeles Water Rate Increases" (office of the mayor of Los Angeles)
  • Meeting with Councilmembers Alarcon and Janice Hahn on March 26, 2010
  • Deposition of Lee Alpert, President of the Department of Water and Power, on March 25, 2010

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