What efforts have been made by LADWP to reduce costs prior to seeking rate changes?


From February 2011 to June 2014, LADWP implemented a multi-million dollar cost reduction plan to achieve a quick and measurable impact on LADWP’s expenses, and to help keep rates reasonable in light of industry-wide operational, regulatory and financial challenges. 

As of June 2014, LADWP had saved an estimated $467 million, which exceeded the target by $8 million.

Additional cost savings going forward include:

  • The most significant cost savings comes from a new labor contract with LADWP’s largest employee bargaining unit, which will save $456 million over four years (ending in October 2016). This will represent a savings of $5 billion over 30 years.
  • Lower cost financing for water and power projects will save approximately $267 million.

Corporate Performance Unit benchmarking and performance metrics will ensure cost efficiency and accountability.