Los Angeles Mayor Karen Bass called on the city’s water and power department to halt residential utility shutoffs through the end of the year, responding to growing public fury over steep utility bills following record-setting summer heat waves.
Bass announced Tuesday that she asked the Los Angeles Department of Water and Power board to suspend power and water disconnections for customers unable to pay their bills, telling residents to pay whatever amount they can afford in the interim. A spokesperson for the LADWP said the freeze will take effect immediately, with the department’s board slated to formally approve the request on Oct. 27, according to reporting by LAist.
Searing heat pushes customers into higher rate tiers
The spike in utility charges stems largely from intense air conditioning use during blistering summer temperatures. The LADWP bills residential customers every two months using a seasonal, tiered pricing model. When consumption surges, users are pushed into Tier 2 and Tier 3, which carries the highest electricity rates and applies only from June through September, the Los Angeles Times reported.
DWP officials noted that during August and September, two percent of the utility’s 1.6 million customers received bills exceeding $3,000, while three percent were billed between $2,000 and $3,000. Roughly 12 percent received bills between $1,000 and $2,000, while at least 60 percent remained under $500, according to LADWP figures cited by LAist.
Interim General Manager Dave Hanson defended the department’s pricing structure, telling ABC7 Los Angeles that humid conditions and extreme heat pushed electrical demand near all-time records. “It’s not so much the rate as it is the amount of electricity that they’re using when they’re running fans, they’re running air conditioners,” Hanson said.
Sticker shock hits homes and local businesses
Reports of soaring bills have swept across Los Angeles in recent weeks, causing widespread outrage. Former UCLA football player Micah Reed garnered national attention online after receiving a $3,300 two-month bill for his West Hills home, which included a $2,100 charge for electricity, ABC7 reported. Reed subsequently launched an online petition calling for an independent audit of the department, drawing more than 28,000 signatures and prompting Los Angeles City Controller Kenneth Mejia to open an investigation.
Small businesses have also absorbed punishing increases. In the Fairfax District, the historic Canter’s Deli saw its utility bill jump to more than $34,000—an increase of roughly $10,000 over previous cycles—forcing management to switch off air conditioning in one dining room overnight to rein in expenses, the New York Post reported.
Beyond high summer temperatures, bills have been pushed upward by other recent municipal adjustments. The Los Angeles City Council approved a multiyear series of sewer fee increases in September 2024, alongside recent increases in municipal trash collection fees, according to the Los Angeles Times.
Payment arrangements and pending decisions
Under the city’s temporary relief plan, customers needing financial flexibility will be permitted to enter into payment plans without interest or late penalties, LAist reported. Bass also urged residents to apply for the utility’s Level Pay program, which distributes power costs across an even 12-month average, as well as assistance initiatives such as EZ-Save and Lifeline for low-income households and seniors.
The utility issue has quickly spilled into the Los Angeles mayoral race. Challenger Nithya Raman held a campaign appearance Monday presenting a three-point plan that calls for an LADWP audit, executive salary reviews, and requiring department leaders to appear before the City Council to explain rates, according to ABC7.
What remains unsettled is how the utility plans to structure long-term debt collection once the shutoff moratorium expires at the end of December, as well as when customers will be required to pay off their remaining past-due balances.
