City Council Approves DWP Rate Hike

City Council met Tuesday at the Civic Center to vote on back-to-back electricity rate increases, approving an 11 percent increase in utility bills over the next two years to reduce coal usage by using renewable resources.

"Maybe it's the best idea because people will be more careful with their electrical bill," said USC sophomore Sarah Frear.

The plan was approved despite protests from ratepayers who say the amount they pay is already too high.

Salaries at the Los Angeles Department of Water and Power are much higher than those paid by other public and private utilities, an analysis done by a Los Angeles based consulting firm, PA Consulting, found.

PA Consulting concluded that key employee groups at DWP earn more money and receive health and retirement benefits that appear to be more than the norm for local electricity and water companies.

DWP officials say the major cause of rate increases are state regulations like the call for cleaner-burning energy and better pollution controls on electrical generation.

There is also a long-term effect. DWP officials said if utility focuses on reducing electricity usage across the city there would be greater savings in the future. This could come with new sources of renewable energy like wind and solar power.

"It's an elastic resource," said USC junior Blake Lamb. "It's so hot and there are so many things that run on electricity. There's not much you can do about it."

The average top salary for a utility worker at the DWP was 41 percent greater than the average top salary for that job at 15 other utilities.

DWP pays its employees on average 28 percent higher than all other utilities.

The DWP said they plan to make the city more energy efficient by weathering homes, which in turn will create more jobs for the community.

The increases are expected to make $321 million by June 2014.