Power Rates - Review
Rate Applications Group
LADWP Rates & Contracts
2012-13
Power Rates - Introduction
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Rates are designed to reflect DWP costs
Rates are set by ordinance
 Designed to reflect the costs incurred for all aspects
of providing electric service for the city
 Reviewed by the independent Ratepayer Advocate
 Submitted to the Board of Water and Power
Commissioners
 Approved by the Los Angeles City Council
Rates are applied based on DWP rules and policies
Residential Rates - overview
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Designed to encourage conservation
Bill consists of kwh charges and taxes
Standard rate R-1A:
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Tiered rates are now in effect year-round
Tier allocation determined by Zone
TOU mandatory if monthly usage exceeds 3000 kwh
Optional TOU rate R-1B:
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Peak rates are higher June – September
All 3 rates (base, low peak and high peak) are lower than the
standard rate October - May
Not recommended if 2 month consumption averages less than
2000 kwh, or if summer usage is higher due to high AC usage
Tiered rates not in effect
Recommended for customers who can control their energy
usage, high kwh users and solar customers
Lifeline, Low Income discounts not available
Residential TOU – some important
points to remember
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Meter availability is limited, and DWP has
discretion over which customers will receive them
Not every customer who requests a TOU meter
will receive it
Customers can opt out of the TOU rate at any
time, but they cannot return to the TOU rate until
12 months have elapsed
After a TOU meter has been installed, it will
remain at the customer’s location on a permanent
basis, and the old meter cannot be returned
Solar net metering – some
important points to remember
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A net meter records the net difference
between energy sent from DWP to the
customer, and energy sent back to DWP
DWP cannot read
Residential Rates – Q & A
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Q: why are my rates so high?
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Q: why is my bill so high?
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A: All customers receive an electric bill, even if there is no consumption.
Every customer incurs costs of service (for billing, meter reading, etc),
even if the usage is low or negative
Q: why don’t my regular and solar bills agree?
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A: Seasonal rates are in effect June – September. This is not an
increase: it is simply a seasonal variation
Q: I have solar – why do I still get a bill?
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A: Every line item represents a specific cost that is incurred by DWP as
it provides electric service
Q: why did my rate go up in the summer?
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A: The bill is based on consumption as recorded by the electric meter.
The usage should be analyzed to check for consistency, seasonal
variations, or anything that may appear unusual
Q: why are there so many line items?
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A: DWP residential electric rates are among the lowest in CA
A: The solar statement supersedes the regular bill because it shows
credits and numbers that the regular bill is unable to display
Q: I have solar, so why am I not on TOU?
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A: The TOU rate is optional, not mandatory. Customers must request it
in writing
Commercial Rates - overview
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Rate is determined based on kw demand and
the service voltage
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A1: demand is less than 30 kw
A2: demand is greater than 30 kw, service voltage is 4.8 kv
A3: demand is greater than 30 kw, service voltage is 34.5 kv
A4: demand is greater than 80 Mw, service voltage is 138 kv
CG, XRT eligibility requires analysis and special DWP
approval
TOU is optional for A1, mandatory for A2 and A3
Demand meters are installed at DWP’s discretion
There is no separate solar commercial rate
Commercial Rates - components
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The electric bill consists of service charges, kw charges,
kwh (and kvar) charges, and taxes. (Please note: these
terms are defined and explained in the ordinance, which
is posted on the DWP website)
Kwh charges:
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Kw charges:
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Energy charges
ECA, VRPSEA, CRPSEA, VEA
State tax
Facilities
Demand
ESA, RCA, IRCA
Reactive (Kvar) charges (only with minimum 250 kw):
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Nonexistent on Rate A1
Per kvar when kvar is metered
Per kwh when kvar is unmetered
Commercial Rates Q & A
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Q: why is my bill so high?
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Q: why is the commercial rate so high?
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A: A meter with a k multiplier is designed to read higher volumes of kwh and kw. This
provides DWP with an opportunity to bill more accurately
Q: why am I being billed on the A2 rate, even though I haven’t exceeded 30 kw?
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A: This is a rate ordinance requirement. The kw read helps DWP determine the service size
and transformer requirements of equipment that serves multiple customers
Q: why are my reads multiplied by a k constant?
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A: Facilities represents another main component of the bill – it is not optional
Q: why is the facilities charge for a whole year?
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A: Demand is a major component of the bill. A relatively high demand and low kwh usage
will have disproportionally high demand charges
Q: why do I have to pay a facilities charge?
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A: DWP commercial rates are competitive with those of neighboring utilities
Q: why is my demand charge so high?
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A: The bill is based on kwh usage and kw demand. Billing history should be analyzed to
determine if there are any inconsistencies or any other information that may indicate there
is a possible error
A: This can be corrected retroactively by Rate Applications
Q: where are my commercial solar credits?
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A: These will be present if the net energy kwh total is negative. The primary benefit
provided by a commercial solar installation is to benefit a customer in a similar manner as
any other energy efficiency project – by reducing kwh usage
Power rates – General Q & A
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Q: there is no way this bill is correct. How can I challenge the meter reads?
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Q: my bill went up when you replaced my meter. How can I get my old meter back?
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A: The A1 rate applies to common area meters serving 2 or more units. This determination
is made by providing a meter survey in the field
Q: why haven’t I received the TOU meter I requested?
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A: The term “adjustment” indicates that this particular billing component may be adjusted
quarterly. The ECA is not a surcharge or a bill correction. It is a main component of the bill
that represents certain variable costs and DWP programs
Q: my service is a residence. Why am I on the commercial electric rate?
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A: These bill components are controlled by the City Bureau of Sanitation. DWP is only the
billing agent
Q: why do I have to pay a “cost adjustment?”
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A: Meters don’t use energy – they are simply recording devices. In most cases, the old
meter is no longer available
Q: why are my taxes, sewer charges, and trash fees so high?
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A: The DWP representative should try to help the customer determine why the reads may
be relatively high, as well as check for historical consistency. The customer may also
request a field investigation
A: TOU meters are installed based on availability. When TOU is optional and not
mandatory, DWP has the discretion to determine meter installation priorities
Q: how can I lower my electric bill?
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A: By identifying energy usage and demand characteristics in order to manage costs, and
by using electricity as efficiently as possible. There is a lot of valuable and useful energy
efficiency information on the DWP website
Power Rates – Where to find basic
billing information
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OnDemand displays the bill exactly as the
customer sees it
CIS displays all billing information
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CUSE shows kwh history, meter number, rate code
DUSE shows kw demand
EHIS shows the electric bill calculation
MTRD shows the meter reads as recorded
AJMT and POOE show any adjustments, comments
Other databases (WMBA, WMIS) show meter
installations and removals
Power Rates Review - Summary
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Rates reflect DWP costs
Rates are set by ordinance and undergo
an extensive approval process
Rates are applied based on requirements
outlined in the current ordinance and on
DWP rules, policies and procedures
Rates are competitive with those of
neighboring utilities
Rates reflect DWP commitment to
promoting energy efficiency