Bass requests independent audit of LADWP rates before Tuesday vote

Mayor Karen Bass requested an independent audit of the Los Angeles Department of Water and Power on Monday. She asked the utility’s governing board to examine how rates are calculated and billed. The mayor also urged officials to expand current relief measures for customers facing high bills.

The Board of Water and Power Commissioners will vote on a resolution Tuesday at 10 a.m. The proposal directs staff to review electricity pricing tiers, seasonal rates, and time-of-use charges. Bass said the current proposal does not include the outside audit she requested. She wants the audit to determine if the rate structure can be changed to protect customers from unexpected cost spikes.

“Angelenos are opening bills they did not expect and cannot afford, and they need relief now,” Bass said in a statement. She asked commissioners to go further than the scheduled resolution. Bass wants the department to consider automatic enrollment in Level Pay and to increase energy-efficiency rebates by 25%.

LADWP told the SCNG that details regarding the audit’s scope, timing, and funding should come from the Mayor’s Office. The department noted that the authorization process may become clearer during Tuesday’s meeting. The Mayor’s Office did not immediately provide details on who would select the auditor or when the work would begin.

The department is evaluating the request for automatic Level Pay enrollment. Currently, customers must choose to enroll in the program. Level Pay estimates annual utility costs and spreads payments evenly to reduce seasonal swings. It does not reduce the total amount a customer owes. LADWP will also assess the cost of the proposed 25% increase in energy-efficiency rebates, which would be paid from the department’s budget.

Median residential electricity use was roughly 20% higher than last year, according to LADWP. Los Angeles experienced 15 heat advisory days this year, compared with five in 2025. Of 1.7 million bills sent in August and September, more than 60% were under $500. LADWP Interim General Manager David Hanson said increased usage, rather than rate growth, is the main factor behind higher bills.

“It’s not so much the rates. We get a slow growth every year in rates,” Hanson said at an Oct. 20 news conference. “It’s really usage.” The office of the Ratepayer Advocate reported that median residential electricity use increased by approximately 67% between May and August. Higher air-conditioning use pushes customers into expensive pricing tiers, where summer prices rise by about 25%.

Bass announced an initial round of relief last week, including a halt to residential water and electricity shutoffs through the end of the year. The Tuesday resolution would formally direct LADWP to suspend residential disconnections for nonpayment through the remainder of 2026. It also calls for expanded outreach about conservation programs and financial assistance. City Controller Kenneth Mejia’s office plans to investigate why certain rates have increased and how the tier system contributes to higher costs.