LADWP Proposes Modifications to Water Shortage Year Rates

 
LADWP has received numerous inquiries and suggestions regarding mandatory water conservation from various stakeholders as well as the Los Angeles City Council. During the discussion and consideration of Mandatory Water Conservation by the Council at its meeting on April 17, 2009, the Council requested LADWP implement a process to consider "hardship exemptions" and report back with a proposal that includes a hardship process for persons who have special medical needs, who own horses and/or have reduced their water use as much as possible.
 
In addition, the Council requested that the Water Shortage Year Rates ordinance be amended to provide the City Council with at least 30 days to consider any potential future request to implement Shortage Year Rates.
 
As you know, shortage year rates are designed to send a strong price signal to our customers to conserve water.  It is not our goal to adversely impact customers who are already conserving, but who may have extenuating circumstances. As a result, the LADWP plans to move forward with the proposed water rate modifications below:
 

• Medical Use Allocations
• Increased Council Review Time for Shortage Year Rates
• Horse Allocations

 
In addition to the specific modifications requested by the Council, the LADWP is also proposing to increase the Low Income/Lifeline Subsidy and make a technical adjustment to the Tier 2 Rate.
 

• To ensure that our Low Income/Lifeline customers are not adversely affected by mandatory water conservation, LADWP will increase subsidies by the degree of water supply shortage. In this case, LADWP proposes to increase subsidies fifteen percent, the current declared shortage.

• Currently, the cost of purchased water is embedded in the Tier 2 rate and is added to the Tier 1 rate. In order to maintain the proper price signal and encourage conservation, LADWP proposes to add purchased water costs to Tier 2 rather than embed this cost in the current pricing structure.  If the current structure remains in place the Tier 1 rate will ultimately surpass the Tier 2 rate and customers who use only Tier 1 water will be penalized and take on the burden of heavy water users.

 
LADWP will host workshops in June to provide information relative to the proposed changes to the recently implemented water shortage year rates. In addition, LADWP is developing a Strategic Plan. The initial draft framework was presented to the Board of Water and Power Commissioners who in turn directed staff to seek input from interested stakeholders, especially Neighborhood Councils. To that end, a discussion of LADWP's Strategic Plan will be included in the June workshops. Please find below a schedule for these workshops.
 

In addition, particularly for those who are unable to attend any of these meetings, you may provide input and/or ask questions online by using the Inquiry feature at www.ladwpneighborhoodnews.com.

We hope to see you at one of the workshops and we thank you for your dedicated interest and participation.