The DWP is going forward with removing the annual 10% cap and quarterly rate adjustments based on the cost of energy.
DWP projects that the cost of energy will increase over the next year by 14.1% and nearly double by the year 2014. This is a pass through of energy costs officially titled -Energy Cost Adjustment Factor (ECAF) It's all based on higher costs of energy from existing sources and the integration of wind power. Rate payers that use less than 500 KWH (basically apartment dwellers) will be subsidized by those using over 1300 KWH per month. Those customer's bills will jump from $280 per month to nearly $350 per month according to the new tier rate chart.
Outside the DWP, this looks like a $20 billion plan to re-implement Measure B, which the public wisely voted down earlier this year. While the argument is that the increases will fund repairing infrastructure, it is only ONE of several rate structure increases that the DWP has planned for you in the short term.
What's shocking is that the alternative to removing this cap is - according to DWP - to cut back on Capital Programs for infrastructure. Nowhere do they mention the obvious cost savings measures that could be achieved by cost cutting or scaling back the massive unfunded pension and retirement costs for the DWP union.
As a City Council member, I would ask for more accountability. DWP would need to show actual cost reduction in their operations. An independant ratepayer advocate than has access to DWP records is the best way to achieve that accountability.
Mary K. Benson
Posted by
Benson for CD2
on
3:04 PM