Bass Orders LADWP Audit and Bill Relief After 7% Rate Hike

Los Angeles utility customers have reported sharp increases in their monthly water and power bills, leading city leaders to demand an independent financial review. The spike in costs has generated political pressure for immediate relief measures and closer oversight of the Los Angeles Department of Water and Power.

LADWP electric rates rose by 7 percent compared to the previous year, while water rates declined slightly during the first half of 2026. Customers also pay a 10 percent city utility tax on their usage. Dave Hanson, the interim general manager for LADWP, stated that recent heat waves and humid conditions drove power consumption to near-record levels. He noted that customers running air conditioners and fans hit higher pricing tiers, resulting in large bi-monthly bills.

Hanson added that sanitation fees for trash collection increased by approximately $75 to $100. This fee increase, combined with high summer electricity usage, contributed to the total cost burden for households. The utility maintains that it works with its financial service office to keep rates as affordable as possible, though no timeline for rate reform has been announced.

Residents expressed frustration over the sudden cost jumps. Joyce Beaird described the bills as outrageous. James H. Cousins said his costs almost doubled. Lawrence Trent Holmes noted that the bills were far higher than expected. Community activist Earl Ofari Hutchinson reported that tens of thousands of people signed petitions demanding accountability from LADWP leadership.

Los Angeles Mayor Karen Bass directed the LADWP Board of Commissioners to explore specific measures to reduce the burden on customers. Bass said the city needs outside efforts to examine the department's operations. Councilwoman Nithya Raman called for an independent audit of the rate structure and billing practices last week. Bass also asked the board to pause utility shutoffs through the end of the year for customers facing higher bills, a proposal the board will consider at its next meeting.

Under the new guidance, customers can pay what they are able to afford immediately. Eligible low-income seniors and households may qualify for assistance through LADWP's Lifeline or EZ Save programs. The mayor is also encouraging enrollment in the Level Pay Program, which averages utility costs over 12 months to create consistent monthly payments. Questions remain regarding how long customers can defer outstanding balances and when those amounts will become due.