The battle over Los Angeles DWP rates has been temporarily halted after the L.A.
City Council voted down the utility company's proposal. (Creative Commons)

The Los Angeles City Council voted 13-0 early Thursday morning to veto a 5.7 percent rate increase proposed by the Department of Water and Power only an hour after receiving the proposal, temporarily stopping a fierce standoff regarding energy rate increases in L.A. County.

The rate hikes would affect residential property and business owners in the area by increasing their fees to aid the city financially as it attempts to switch to alternative energy sources.

The issue has been fraught with controversy since the beginning.

The DWP met to discuss the council's suggestion of anywhere between a 0.4 hike for homeowners and a 0.5 to a 0.6 cent per kilowatt-hour price hike for businesses.

Councilmembers said these were the smallest rate increases that could raise the DWP's revenues enough to keep their bond rating at its current level.

"We all have an obligation for fiduciary responsibility," Councilmember Eric Garcetti said. "No proposal before the city has drawn as much anger as I've seen from this. I have heard from people who have never been involved in City Hall politics."

In an effort to reconcile Villaraigosa's suggestion with the City Council's, the DWP board came up with a 0.7 cent per kilowatt-hour, or 5.7 percent, rate increase.

This decision was delivered despite appeals made by councilmembers Garcetti and Jan Perry at the DWP board meeting, requesting the board respect the City Council's suggestion.