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LA To Up Energy Cost 28% To Go Green

From the Los Angeles Times:

DWP rates may rise between 8% and 28% to pay for mayor’s green initiatives

The hike would pay for more aggressive conservation programs and a solar plan designed to create 16,000 jobs as well as cover the fluctuating price of coal and natural gas.

By David Zahniser and Phil Willon

March 15, 2010

Households that get their power from the Los Angeles Department of Water and Power could see their electric bills go up between 8.8% and 28.4%, depending on where they live and how much energy they use, under a plan unveiled Monday by Mayor Antonio Villaraigosa.

Appearing with labor and environmental leaders, Villaraigosa said the proposed increases would ensure that the DWP meets his goal of securing 20% of its energy from renewable sources such as wind and solar by Dec. 31.

The increased revenue would help pay for new environmental initiatives, including more aggressive conservation programs and a solar initiative designed to create 16,000 jobs.

Make that 16,000 patronage jobs. 16,000 more union foot soldiers for the Democrats.

But it also would address the DWP’s failure to collect enough money to cover the cost of existing renewable energy initiatives and the fluctuating price of coal and natural gas, utility officials said.

"Nobody’s denying that this is a big increase — at least I’m not," said DWP Acting General Manager S. David Freeman. "Because we’ve put it off so . . . long, [ratepayers] have saved money in the last three years."

Sure they have.

The mayor has been talking for weeks about the need for the DWP to charge more. Monday was the first day his team showed its estimate of the effects on consumers of the increase, which is scheduled to be phased in over a full year starting next month.

Under the plan, households that use the smallest amount of electricity — technically known as Tier 1 customers — would see an average increase of 8.8%. Those customers make up 58% of the DWP’s residential ratepayers.

Tier 2 customers, who use more power and make up 36% of the utility’s residential customers, would see an average increase of 16.8% to 18.9%. Tier 3 customers, who use the most power and make up the remaining 6%, would face hikes in their electric bills of 24.4% to 28.4%, according to documents provided by the mayor’s office.

In the hotter San Fernando Valley, where ratepayers receive a slight break on their bills, the average Tier 1 customer would see monthly electric bills jump from $38.76 to $42.17 by April 2011. A Tier 2 customer in the Valley would see the monthly bill increase from $92.19 to $107.60, according to the proposal.

Apparently the LA Times couldn’t bring itself to tell us what the increase would be for Tier 3 customers.

Businesses would see increases in the average bill ranging from 20% to 26%. Any increase would become less steep, however, once ratepayers adopt conservation measures or find ways to install solar panels and sell the excess power to the DWP, mayoral aides said.

Ah, so the increase won’t be so much if the ‘ratepayers’ use less electricity? How kind of our masters.

The DWP board, whose members are appointed by the mayor, must approve the plan for the increases to go into effect; the proposal goes before the board Thursday. The City Council will review the plan in upcoming weeks and can affirm it or send it back for more work.

The mayor also warned that more increases would be needed to reach his next goal: securing 40% of the DWP’s power from renewable sources by 2020.

"We could have raised our fees even more to address the long-term goal of taking us to 40% renewables by 2020 and coal-free," he said. "We knew we had to do this incrementally."

Once all the increases are in place, the DWP will receive an additional $648 million per year.

Taken right out of Californians’ pockets, without their having any say so in the matter.

And to think this country was founded on the rejection of taxation without representation.

By the way, $648,000,000 divided by 16,000 jobs = $40,500 per ‘job.’

Villaraigosa said the money would help pay for the hiring of "green doctors" to evaluate the energy efficiency of homes and stepped-up efforts to help residents obtain energy-efficient lightbulbs and refrigerators

Well, at least the money isn’t going to be wasted.

One union leader said residents would support the increases once they knew how the money would be spent.

"When they see that there is a clear-cut plan to do what we need to do in this city — which is to be more green, to create jobs — then I think that most people . . . are willing to go along with that," said Maria Elena Durazo, executive secretary-treasurer of the L.A. County Federation of Labor.

As we said, the money is going to go straight into the pockets of the public sector unions.

The Los Angeles city fathers must have done the math and figured that they could buy more votes with this money than that they would lose by implementing this new exorbitant tax.

Tammany Hall would be so proud.

This article was posted by Steve Gilbert on Tuesday, March 16th, 2010. Comments are currently closed.

13 Responses to “LA To Up Energy Cost 28% To Go Green”

  1. BillK

    Why wait for that pesky Cap-and-Trade legislation when you can begin screwing people over now?

    From the Los Angeles Times:

    DWP rates may rise between 8% and 28% to pay for mayor’s green initiatives

    By David Zahniser and Phil Willon

    Households that get their power from the Los Angeles Department of Water and Power could see their electric bills go up between 8.8% and 28.4%, depending on where they live and how much energy they use, under a plan unveiled Monday by Mayor Antonio Villaraigosa.

    Appearing with labor and environmental leaders, Villaraigosa said the proposed increases would ensure that the DWP meets his goal of securing 20% of its energy from renewable sources such as wind and solar by Dec. 31.

    The increased revenue would help pay for new environmental initiatives, including more aggressive conservation programs and a solar initiative designed to create 16,000 jobs.

    But it also would address the DWP’s failure to collect enough money to cover the cost of existing renewable energy initiatives and the fluctuating price of coal and natural gas, utility officials said.

    Nobody’s denying that this is a big increase — at least I’m not,” said DWP Acting General Manager S. David Freeman. “Because we’ve put it off so . . . long, [ratepayers] have saved money in the last three years.

    The mayor has been talking for weeks about the need for the DWP to charge more. Monday was the first day his team showed its estimate of the effects on consumers of the increase, which is scheduled to be phased in over a full year starting next month.

    Under the plan, households that use the smallest amount of electricity — technically known as Tier 1 customers — would see an average increase of 8.8%. Those customers make up 58% of the DWP’s residential ratepayers.

    Tier 2 customers, who use more power and make up 36% of the utility’s residential customers, would see an average increase of 16.8% to 18.9%. Tier 3 customers, who use the most power and make up the remaining 6%, would face hikes in their electric bills of 24.4% to 28.4%, according to documents provided by the mayor’s office.

    In the hotter San Fernando Valley, where ratepayers receive a slight break on their bills, the average Tier 1 customer would see monthly electric bills jump from $38.76 to $42.17 by April 2011. A Tier 2 customer in the Valley would see the monthly bill increase from $92.19 to $107.60, according to the proposal.

    Businesses would see increases in the average bill ranging from 20% to 26%. Any increase would become less steep, however, once ratepayers adopt conservation measures or find ways to install solar panels and sell the excess power to the DWP, mayoral aides said.

    http://www.latimes.com/news/lo.....0063.story

    Anyone want to guess on how many more businesses Los Angeles will hemorrhage?

    As far as citizens – if you’re dumb enough to live in LA, that’s what you get for allowing DWP to implement these stupid programs.

    But what uses just a ton of power? Movie making.

    Can you see even more studios moving all production they can outside the Los Angeles area? I certainly can.

    Let’s not forget the man doing this is a darling of the left, Antonio Villaraigosa, who they wanted to recruit to run for Governor.

    California truly is a preview of the destruction that will be done to the rest of the country.

  2. Mithrandir

    Ever notice that going GREEN never reduces the cost of anything? In fact, every government plan always cost money, never saves money.

    If you decided to put solar panels on your roof, and completely cut yourself off from city power, GUESS WHAT would happen to you next? You think the gov’t would applaud your ‘green efforts’ to save energy! –F#($# NO! They would just get the money in your property tax assessment. If you are rich enough to have all those solar panels, you are rich enough to pay the same tax or more than what you spent on your electric bill. It’s not about saving energy, its about confiscating power.

    Gotcha either way suckers!

  3. jrmcdonald

    I get it! All the ‘green jobs’ are the second jobs folks need to pay for higher costs!

  4. tranquil.night

    My conclusion has been that hyper-progressive NorCal is just choking off SoCal slowly but effectively. It’s not just energy but water too which is going to see matching increases. Business has all but abandoned LA which is down in the fiscal pit, in no small part due to the massive welfare service to undocumented Californios and ridiculous regulatory environment statewide.

    But I don’t think I’m mistaken in believing Sacramento’s real target with the economic noose is Orange County, Irvine, San Diego and similar wealthy conservative bastions.

  5. Reality Bytes

    Just wondering what kind of credit Hollywood gets for stage lighting. I wonder who pays for that?!

  6. proreason

    For some reason, I’m thinking about volcanoes.

    And I’m not horny today (yet), if that’s what you’re thinking.

  7. Reality Bytes

    Volcanoes make you horney?!

  8. MinnesotaRush

    “Nobody’s denying that this is a big increase — at least I’m not,” said DWP Acting General Manager S. David Freeman. “Because we’ve put it off so . . . long, [ratepayers] have saved money in the last three years.”

    There’s the real problem. They found out some folks were actually able to save a little money. We can’t have that now, can we.

    If they got a little cash .. let’s get it!

    • Mithrandir

      That is why NOTHING these people tell you is believable–nothing. Saving money, saving the environment, conserving this or that….none of that is true.

      It is all about power. Once you realize every sentence uttered, every letter written in to law, every media event, every speech is about a power grab, that’s all it is and ever will be. We are not drowning in debt because these people have been honest and responsible. . .

  9. Steve

    By the way, what is this going to do to all of those good ‘green’ citizens who plug in their hybrid cars all night?

  10. beautyofreason

    Instead of enjoying cheaper amenities, and promoting a higher quality of life that Americans have enjoyed for the last half century, these idealistic nitwits end up increasing the price of the goods and services – thus lowering the standard of living for everyone.

  11. Rusty Shackleford

    What’s coming next, and soon, is that Califawn-ya will be the first state that has state tax withholding that is higher than federal. Watch this space—

  12. Reality Bytes

    How about we sell California to China & pick up Mexico in their place. Hell, at least most of them there speak English & actually have jobs. The food is excellent, the women….wait a minute…

    Hey Pro, all of a sudden I’m thinking about volcanoes!!!




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