Amid controversy over steep utility rate hikes for Los Angeles Department of Water and Power customers — some in the thousands of dollars — CBS California Investigates took a closer look at how rates compare to other utilities in the region, and at the high salaries of dozens of executives.
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rates → take → executives
Tuesday night, the LADWP Board of Commissioners passed a resolution requesting a review of the agency's rates, structures and how they're applied to individual customers.
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they → pass → customers
LADWP provided CBS California Investigates with a news release about the board's resolution; click here to read it.
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LADWP → provide → it
Tim O'Connor, executive director of LA's Office of Public Accountability, which is the independent ratepayer advocate for the City of Los Angeles, says, "it's a great step in the right direction."
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it → say → direction
He added, "however, of course, the devil's going to be in the details for how you do that review."
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you → add → review
O'Connor said the review should also improve transparency to customers and should aim to modernize rate structures.
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review → say → structures
"Our rates were designed over 10 years ago, and a lot has changed since then," O'Connor said.
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O'Connor → design → ?
"So, being able to reward customers based on when they use it, and to encourage new technology, and to give people the data to be able to control their use, these all have to be on the table, and are all things that we think are going to be part of the review.
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we → reward → review
"
Something else advocates believe should be analyzed in the review is the high salaries of LADWP supervisors and executives.
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advocates → believe → supervisors
CBS California Investigates found that eight supervisors and one executive at LADWP make more than $700,000 a year, and more than two dozen supervisors make more than $600,000 a year.
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supervisors → find → 600,000
LADWP says many of those supervisors are people who supervise crews in the field.
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who → say → field
Customer rates are paying those salaries, but O'Connor says the rates are primarily funding major capital projects, operations expenses, and maintenance expenses.
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rates → pay → projects
"When we look at the individual salaries, we're not seeing that as the driver of what people are feeling in their pocketbook.
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people → look → pocketbook
We're seeing that as a challenge of the utility needing to attract and retain staff that can keep the lights on and to keep the water flowing," O'Connor said.
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O'Connor → see → lights
"It doesn't mean that we shouldn't be reviewing that and making sure it's reasonable, that is absolutely something we should be doing, but when we look at the cost drivers, we're seeing other things that are driving those costs as opposed to salaries.
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that → mean → salaries
In their statement to CBS California Investigates, LADWP provided a breakdown of overtime paid to its more than 13,000 employees.
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LADWP → provide → employees
The utilities company said overtime accounts for 5% of its $10.8 billion budget.
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overtime → say → budget
Total labor costs account for 18% of LADWP's budget.
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costs → account → budget
"The employees you inquired about hold highly skilled positions that are essential to operating, maintaining, and restoring the City's electric infrastructure," LADWP said in its statement.
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LADWP → inquire → statement
"These classifications are in high demand throughout the utility industry, making recruitment and retention increasingly competitive.
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recruitment → make → industry
LADWP's compensation structure is designed to help attract and retain the specialized workforce required to safely and reliably operate one of the nation's largest municipal utility systems."
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structure → design → systems
LADWP added that its overtime compensation increased 17% from roughly $426 million in 2024 to more than $499 million in 2025.
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compensation → add → 2025
LADWP rate hikes outpacing inflation
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hikes → outpace → inflation
An analysis from UCLA School of Law Emmett Institute on Climate Change and the Environment found that LADWP's rates have surged by 45% in the last year, compared to Southern California Edison, which has only increased 4%.
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which → find → Edison
Denise Grab, Emmett Clean Energy Law and Leadership Project Director, explained the increase is "significantly in excess of inflation."
O'Connor says his office has also found the increases have outpaced inflation.
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increases → explain → inflation
"We know that the department, for many, many years, was keeping rates pretty much indexed to inflation," O'Connor said.
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O'Connor → know → inflation
"Since the mid-2023-2024 timeline, the investments the Department of Water and Power has been making have really increased, which has caused those rates to increase as well, and exceed inflation.
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rates → make → inflation
We did our own study that showed that in the last 18 months, the price for water and power has indeed surpassed inflation.
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price → do → inflation
Now, of course, our rates are still lower than utilities like Southern California Edison, which mean our bills are lower, but that doesn't mean that we shouldn't be rethinking and reforming the rates we have to make sure that the people in Los Angeles can afford the utility bills that they get in the mail.
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they → mean → mail
Grab says one reason for the steep increase is to fund more capital projects.
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reason → say → projects
"This is kind of in the context of many years of rates that were very cheap compared to the state average, and, without huge hikes year over year.
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that → compare → year
So LADWP is kind of playing catch-up for having deferred some maintenance for some period of time, but they have had a significant increase, which has, I think, caused a bit of sticker shock for a lot of Angelenos across the city," Grab said.
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Grab → play → city
In its statement, LADWP said its rates are also lower than nearby utility companies, "demonstrating the value of public power and a City-owned utility.
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rates → say → power
"
Still, Grab says SCE rates are generally higher than LADWP by 20%.
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rates → say → %
A study by Grab's organization in 2025 found LADWP rates were not as high as some other utilities in Southern California, including Glendale Water and Power and Southern California Edison.
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rates → find → Water
A 2026 study commissioned by the city of Pasadena and conducted by a company called New Gen Strategies also found Glendale and SCE have higher rates in October 2026 than LADWP, Burbank Water and Power, and Pasadena Water and Power.
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Glendale → commission → LADWP
O'Connor and Grab both warn rates will continue to increase in the coming years.
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rates → warn → years
Grab says aging infrastructure, wildfire liability and prevention, and rising air conditioning usage due to heatwaves will drive those future rate spikes.
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infrastructure → say → spikes
In fact, a recent presentation from LADWP shows rates are expected to more than double what they are now.
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they → show → LADWP
Grab says as rates continue to go up, LADWP needs to improve its communication with customers.
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LADWP → say → customers
…and 17 more, not listed.
The Aporia
