DWP board ignores L.A. City Council, approves higher rate hike

Los Angeles Mayor Antonio Villaraigosa’s appointees at the Department of Water and Power on Wednesday evening rejected the City Council’s proposal for a 4.5% electric rate hike, opting for a larger increase that was more in line with the amount Villaraigosa had sought for his renewable energy proposal.

After taking a 45-minute break, the DWP board voted unanimously for an increase of 0.7 cents per kilowatt hour, which would translate into a 5.7% rate hike for residents and businesses, according to a high-level utility executive.

The City Council was planning its own 8:45 p.m. meeting to respond to the DWP’s decision.

Councilwoman Jan Perry warned the DWP board that she was willing to reject a larger increase. She accused Raman Raj, the DWP’s acting general manager, of setting in motion “an Armageddon scenario” by threatening to withhold $73 million from the city’s struggling budget.

“I’d be more than comfortable voting no on the entire package,” Perry said. “My environmental credentials are fine, so I’m not worried about it.”