Electric workers receive annual salaries of almost $100,000 in Los Angeles. (courtesy Creative Commons)

Employees of the LADWP are paid significantly more than other Los Angeles workers, who bring home $68,822 on average. The city council voted 3-1 in the beginning of February to increase water and electric bills by $5.67 a month to $59.97. City Councilmember Jan Perry, who oversaw the LADWP, voted no on the proposal.

“The general manager of the department needs to know that the City Council will support him in his cost-reduction efforts,” Perry said. “If this body cannot demonstrate that we will support him in mitigating rate increases by reducing operating costs, then we are going to continue on this path without end.”

The LADWP pays its employees such high rates in part because of the political power of its union, the International Brotherhood of Electric Workers (IBEW), with Los Angeles local chapter IBEW 18. Unions, in Los Angeles especially, have significant power to sway local politics.

In Los Angeles, unions can drastically change voter turn out in elections, specifically by targeting Latino voters according to a study by Cornell University. The IBEW was the third largest contributors for local campaign funds according to a study by the Center for Governmental Studies based in Los Angeles.

“They have money and leverage and it shows,” said Robert Stern, who directs the center, “The union gets what it wants.”

The City of Los Angeles succumbed to pressure from voters when it appointed independent energy consultant Fred Pickel to review the LADWP and its proposed rate increases this January. Pickel is expected to hire a small team to help hold the LADWP accountable.

"The trust between the people of Los Angeles and their utility was sharply broken. We want to establish that trust – not have an adversarial relationship, but trust but verify,” said Councilman Eric Garcetti.

Bloomberg’s recent report added pressure for the city to continue to review the LADWP and its use of city funds; however, the Los Angeles Times has published an editorial in support of increasing funds for the department.

“Current rate hikes are needed to pay rising capital costs connected with higher prices for water and electricity, meeting federal and state standards for drinking water and switching to renewable power,” concludes the Los Angeles Times editorial. “Failure to approve the rate increases could result in fines costing ratepayers more than the increases.”

Moving forward, ratepayers can expect to see increases in their monthly bills for water and power. The City Council will review more LADWP proposal for hikes in fees for at least the next three years.

Reach Associate News Editor Jerry Ting here.