When a California Utility Bill Feels Like a Second Mortgage | Panel

Summary

San Fernando Valley resident Micah Reed says his LADWP bill for one billing cycle reached about $3,322, covering electricity, water, sewer, and sanitation. The bill was up from roughly $2,600 the previous year. After posting about it online, Reed received many similar complaints and started a petition that had nearly 40,000 signatures at the time of the interview.

Reed wants an independent forensic audit of LADWP, a review of its tiered electricity rates, and relief for customers facing high summer bills. He argues that higher tiers especially burden people in hot areas such as the San Fernando Valley, where air conditioning may be necessary to keep a home safe. Reed said he had already made energy-efficiency upgrades and that charging his electric vehicle accounted for only a small part of the bill. He also raised questions about LADWP’s use of revenue, its electricity tax, employee compensation, and the transparency of its bills.

Johnny Graham, a Southern California solar-company CEO, said he regularly hears from customers struggling with utility bills that sometimes exceed property taxes or car payments. He argued that customers have little choice when utilities operate as local monopolies, and said California electricity costs are roughly two to three times the national average. In his view, oversight and transparency are concerns for both public and investor-owned utilities. He also questioned the fairness of tiered pricing and suggested that rates have risen faster than inflation.

Graham said customers in hot-weather areas may bear a disproportionate burden compared with residents in cooler coastal areas. He noted that California’s power plants are often far from population centers, adding transmission costs, and that wildfire-related expenses can also contribute to bills. He praised LADWP’s solar buyback policy as comparatively favorable but said rooftop solar is available only to some homeowners. He argued that rooftop panels and locally sited solar can reduce costs for eligible households, while large, distant renewable projects may require costly transmission infrastructure.

Both guests called for closer scrutiny of rates and utility spending.

LADWP’s response

LADWP said its rates remain competitive and lower than those of other major utilities. It attributed higher bills to a combination of summer electricity use, rate components, and increased city waste and garbage charges.

The department said Los Angeles experienced its hottest summer, average residential electricity use rose about 20% from the previous year, and more than 60% of the 1.7 million combined utility and municipal bills issued in August and September were under $500. It also said it had found no systematic billing or metering problem related to the complaints.

Presenters and contributors

• Siamak Arami — Host
• Micah Reed — LADWP customer and petition organizer
• Johnny Graham — CEO of Pacific United Power
• LADWP — Provided a statement in response to the coverage