California Residents Face Bigger Energy Bills For Using Less

Southern California residents who sacrificed by using less water are now suffering higher prices because the Los Angeles Department of Water and Power has a $111 million shortfall in its latest revenue projections.

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“We have no other way of recovering the revenue to maintain the system for our customers,” Neil Guglielmo, director of budget, rates and financial planning for the DWP, said Wednesday. The Board of Water and Power Commissioners approved a pass-through charge that will be applied to consumers beginning in 2016, according to The Los Angeles Times.

Los Angeles is not alone, however, as agencies throughout California have faced revenue shortfalls from the drought. Some regions in California have instituted a “drought surcharge” while others will simply double their service surcharge, reports The Los Angeles Times.

In L.A.’s case, the DWP’s long-term plan includes instituting an incremental five year rate hike that would increase the average user’s utility bill by roughly 3.4 percent each year. Residents are not thrilled with the action however, according to The Los Angeles Times, with one twitter user saying, “LADWP hikes rates because they aren’t making enough revenue. We’re saving water like we’re supposed to, U mad? I am.”

The paradox of less water use meaning higher costs is just one symptom of the drought that continues to plague California. Resident are hopeful however that the strongest El Nino in decades could bring much needed rain relief, reports Bloomberg. Alan Haynes, service coordination hydrologist at the California Nevada River Forecast Center in Sacramento noted however that, “If the wettest year were to occur, we still wouldn’t erase the deficit we have seen in the last four years.”

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Originally published by the Daily Caller News Foundation


  1. Oblamo binLyen says

    I find it interesting that all of these geniuses haven’t quite figured out that when you cut demand you cut income. When the utilities are forced to pay for peoples toxic florescent bulbs or LED’s and for the states stupedily mandandated ‘green’ ‘renewable’ costly energy there is LESS INCOME. Maybe we need more Illegals to use more energy. Or, perhaps they can find a way to cut their costs, yeah a radical thought.

  2. “We have no other way of recovering the revenue to maintain the system for our customers.”
    -The Problem is not your income, the problem is your excessive operating costs; a Problem that a private company working in a competitive market place, would have corrected long ago.
    Your pay-scales are too high, as are your non-wage compensation packages, and retirement benefits. There lies the root of your solution, but you’re too cowardly to deal with it; instead you – as always with public entities – attempt to drain the pocketbook of the tax/rate payer.

    Keep voting for the same old fools. WHY is there not a CLASS ACTION lawsuit over the money thing??

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