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A special article, the DWP hearing regarding the increase of water rate
A technical article from LVTIA/GC
By: Dariush Bakhtar, Ph.D., CPSS., LVTIA Garden Club Chair
NOTICE OF PROPOSED WATER RATE RESTRUCTURE AND INCREASES FOR THE
LOS ANGELES DEPARTMENT OF WATER AND POWER AND ASSOCIATED PUBLIC HEARING
July 2012.
NOTICE IS HEREBY GIVEN that on Wednesday, August 22, 2012, at 10:00 AM, or as soon thereafter as
the matter may be heard, the Los Angeles City Council is holding a public hearing in the John Ferraro
Council Chamber, Room 340, City Hall, 200 North Spring Street, Los Angeles, CA 90012.
WHY IS THERE A NEED FOR AN INCREASE IN RATES? For a better understanding of the reasons as
provided by DWP, I numbered the reasons without structural or grammatical changes. Please read, if
they are not satisfactory, protest please. Written protests to the proposed rate changes may be
submitted at the public hearing or delivered in person or mailed to the City Clerk, 200 North
Spring Street, Room 395, Los Angeles, CA 90012. Here are the reasons and/or clarifications for
increase.
1. The major factors contributing to the rate increase are complying with water quality regulatory
mandates (particularly concerning drinking water quality), maintaining and improving
infrastructure to provide for a reliable water supply, and the need for investments in Local water
supply in light of rising purchased water costs.
Author comment and question: Is this statement meaning that so far DWP was not complying
with water quality regulatory? Alternatively, was, but the cost are gone up. Is it not more rational
if DWP provide the customers with figures and numbers reflecting the increase of costs in this
determining factor?
2. Safe drinking water projects are necessary to meet Federal and State water quality mandates.
On March 19, 2012, the LADWP increased the capped rate of the Water Quality Improvement
Adjustment Factor to start funding water quality projects needed to comply with drinking water
regulations over the next 12 months. However, this previous rate action only covers a portion of
the total water quality compliance expenses. Further investments are needed in order to meet
longer-term regulatory mandates. Base rate increases are needed to fund these programs.
Author comment and question: To me this reason is the copy of the first one. Is this new
regulation that DWP has to comply with state and federal safety regulations? Can I conclude that
we the DWP customers have been drinking unsafe water?
3. As of 2012, about 20% of LADWP's total installed pipelines have been in service for 100 years or
more. This will increase to 27% by the end of 2014. Aging pipelines and related infrastructure
need to be replaced to maintain a high reliability level for our customers. Additionally, costs are
rising for maintenance and repairs on the aqueduct, tanks, reservoirs, pumping stations, and
hydrants.
Author comment and question: These pipes have made money for the city of Los Angeles.
Where is the money? DWP does not have a planning for the maintenance of their equipment to
correlate their increases in rate with the inflation costs?
4. The LADWP supplements its owned water supply with water from the Metropolitan Water District
(MWD). The price of MWD water will continue to rise as demand for water increases and supplies
decrease. By investing in our local water supplies through groundwater treatment, storm water
capture, water conservation, and recycled water projects, the LADWP will be less dependent on
MWD water purchases that are anticipated to be more costly in the longer term; however, these
investments in local water supply will have an impact on rates in the shorter term.
Author comment and question: The same story again.
The proposed water rate ordinance should ensure that the LADWP will collect sufficient revenue for these
programs to continue providing safe and reliable service while meeting all compliance obligations. The
proposed system wide revenue increase will be 5.2% based on current water purchase costs. The
proposed effective date for the new water rate ordinance is the later of July 1, 2013, or the earliest
possible effective date of the ordinance after July 1, 2013. The proposed water
a.tt.' ad P'e Coi:rvition a way, of life 111 North Hope Street, Los Angeles, California 90012-2607 Mailing
address: Box 51111, Los Angeles 90051-5700
Telephone: (213) 367-4211 Cable address: DEWAPOLA