Mayor Karen Bass asked the Los Angeles Department of Water and Power Board of Commissioners on Monday, Oct. 26, to commission an independent audit of the utility's rate structures. She also urged the board to deliver immediate relief to ratepayers, roughly 17% of whom received bills exceeding $1,000 this summer.

The board is scheduled to meet and act on several proposals at 10 a.m. Tuesday, Oct. 27. Community members will have an opportunity to speak.

Bass framed the audit as a transparency measure. In a press release, she said the outside review should "explain how rates are calculated, justified, and billed, evaluate the cost of service, and examine rate design to promote long-term affordability and protect ratepayers from unexpected billing spikes." She said the process must engage community stakeholders and the Ratepayer Advocate.

The mayor also asked the board to offer incentives for customers to enroll in LADWP's Level Pay program, which averages annual usage into fixed monthly payments, and to consider auto-enrolling customers. She called for a 25% increase in the utility's energy efficiency rebate program, covering upgrades such as cooling systems, windows and appliances.

"Angelenos are opening bills they did not expect and cannot afford, and they need relief now," Bass said in the release.

Those proposals build on steps Bass announced the week of Oct. 19: suspending shutoffs through the end of the year, allowing customers to pay what they can afford and promising more detailed monthly usage reports starting in November.

The audit call lands in the middle of a mayoral race. Councilmember Nithya Raman, who is challenging Bass, proposed her own LADWP audit the previous week in coordination with City Controller Kenneth Mejia. Raman's plan also includes reviewing executive pay, requiring LADWP officials to appear before the City Council to justify rate increases and expanding financial assistance for low-income and senior households.

Raman has alleged that rates rose more than 40% under Bass. LADWP's own data, reported by Los Angeles magazine, shows the residential Tier 1 electricity rate climbed from 18.857 cents per kilowatt-hour in January 2023 to about 27.29 cents, an increase of roughly 45%. The utility characterized that as an average of about 2 cents per year over four years.

LADWP attributed the recent bill spikes to intense summer heat, saying electricity use jumped 20% over its two most recent months of billing data. More than 60% of customers received bills under $500, a department spokesperson told Los Angeles magazine.

The billing crisis has drawn attention beyond City Hall. San Fernando Valley resident Micah Reed, a former UCLA football player, posted a $3,322 LADWP bill on TikTok that drew more than 200,000 views, Los Angeles magazine reported. Reed launched a "Cap the Heat Tax" petition calling for an independent audit and rate relief that collected 32,200 signatures. He was charged $2,114 for electricity alone on his September bill.

Canter's Deli in the Fairfax District was hit with a $35,000 bill this summer, according to KTLA. Owner Mark Canter said the bill jumped $11,000 from one billing period to the next, according to Palisades News.

City Controller Mejia has opened an investigation into the high bills, prompted by Reed's complaints and those of other customers who raised concerns online.

Residents can attend Tuesday's board meeting and speak during public comment.