From 2016 through 2020, a typical residential customer (using an average of 12 HCF, or hundred cubic feet, per month) will see an average increase of just over $3 on their monthly bill, or 4.76% per year. For customers using less water (8 HCF), their monthly cost will increase by $1.07, or 2.6% per year. For high water users (27 HCF), monthly costs will go up $11.05, or 7.2%, on average each year. For all LADWP customers, including residential, commercial, industrial and governmental customers, the water rate change represents an average annual increase of 5.26% over the rate adjustment period.
Additionally, during the first two billing cycles of the rate change, water rates will be slightly higher than average because of the higher cost of purchased water based an extremely low snowpack in 2015. The higher rates reflect the fact that LADWP had to purchase significantly more, higher priced water from the Metropolitan Water District during fiscal year 2015-16 due to the drought. The water cost is expected to be adjusted again on July 1, 2016 to reflect somewhat lower cost of purchased water based on this year’s moderately improved snow levels. This will be reflected on customers’ bills beginning July 1.