LADWP ratepayers subsidize City Hall

Jim Alger, a member of the Northridge West Neighborhood Council, outlines a grave concern many observers of the Los Angeles Department of Water and Power have about the fungibility of money in Los Angeles' Civic Center:

As revealed by a class-action lawsuit filed by five DWP customers, since 2000 the DWP has transferred more than $800 million in "surplus" funds to the city of Los Angeles, $250 million last year alone. The city's description of the money as "surplus" would be laughable if it weren't so indicative of its arrogance. The fact is, the DWP has amassed not a surplus, but instead it's in debt to the tune of $1 billion.

The bottom line is simple. When you send the DWP your monthly check, you probably think what you're paying for is the water and electricity you've consumed. Think again. What you're really doing is subsidizing City Hall.

But it gets worse.

Last June, under the pretense of needing more money for "homeland security," the DWP raised water rates by 11 percent. It could have been higher. If it weren't for neighborhood councils the DWP would have raised rates by 18 percent. Even so, the 11 percent will bring in an estimated additional $60 million. Just coincidentally, of course, the City Council, just weeks after approving the rate hike, transferred an additional $60 million in a "onetime surplus transfer" to the city coffers.

In other words, as a DWP customer you're not only paying for the water and electricity you use, you're also paying a secret tax to the city of Los Angeles.