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Seeking to reduce the City’s carbon footprint, the LADWP announced an "energy conservation" electricity rate increase to take effect now through the end of September. Beginning In 2010, and each year thereafter, the higher "energy conservation" rates will be in effect for the entire summer billing season (June 1 through September 30).

Details in the LADWP announcement below.

REMINDER TO LADWP CUSTOMERS - ENERGY CONSERVATION RATES ARE NOW IN EFFECT

Summer Season Rate Structure Features Three Price Tiers to Encourage Conservation

New Pricing Structure Seeks to Promote Energy Efficiency and Reduce City’s Carbon Footprint

LOS ANGELES - All Los Angeles Department of Water and Power (LADWP) electrical customers are subject to energy conservation rates starting this month, as planned measures approved by the Board of Water and Power Commissioners and approved by Mayor Antonio Villaraigosa and the Los Angeles City Council go into effect.

Energy conservation rates are designed to encourage customers to reduce energy consumption during peak hours throughout the hot days of summer. Reduced consumption of energy equates to less strain on electrical infrastructure, will help minimize power outages and will curtail harmful CO2 emissions.

This Summer, the rates will be in effect through the end of September. Beginning In 2010, and each year thereafter, the rates will be in effect for the entire summer billing season, defined as June1 through September 30. Energy conservation rates are designed to be revenue neutral to the Department.

"The cheapest and cleanest kilowatt of power is the one that is never produced,” said David Nahai, LADWP Chief Executive Officer and General Manager. “This program will help reduce energy production costs due to decreased demand, thereby lowering our customers’ bills and diminishing the city’s greenhouse gas emissions in the process.“

The energy conservation rate structure is divided across two temperature zones in Los Angeles to ensure equity for all customers. Residential customers in Zone 1, the cooler zone, will be allotted 350 kilowatt hours (kWh) per month at the lowest rate, known as Tier 1. Energy consumption beyond 350 kWh up to, and including, 1050 kWh, will fall into the higher-priced Tier 2. Tier 3, the costliest tier, will begin after this point.

Residential customers in Zone 2, the warmer zone, will be allotted 500 kilowatt hours (kWh) per month in Tier 1. Energy consumption beyond 500 kWh up to, and including, 1500 kWh, will fall into Tier 2. Tier 3 will begin after this point.

Customers who already stay within their Tier 1 allotment will not be affected, while customers who use more than their Tier 1 allotment will pay more.

Since last year when the rates were first approved, the Department has proactively worked to help customers reduce energy use in their homes in businesses. From February through June, LADWP delivered two compact fluorescent light bulbs each to 1.4 million residential customers’ doorsteps to help save over 240 gigawatt-hours (gWh) annually and reduce CO2 emissions by 741,000 metric tons over the bulbs’ lifetimes.

Through the LADWP Low Income Refrigerator Exchange Program, the Department has exchanged over 44,000 inefficient refrigerators with new energy efficient models that have resulted in saving over 33.6 gWh of energy, enough to power 5,595 homes for a year and reduce 18,694 metric tons of CO2 emissions.

The Small Business Direct Install Program, which offers up to $2,500 in free energy efficient lighting equipment to those businesses that would be financially challenged to upgrade their inefficient equipment, has assisted over 40,000 small businesses save energy and lower their bills this fiscal year. In doing so, the program has helped customers save 126.8 gWh of energy, enough to power 21,127 homes for a year, while reducing 70,588 metric tons of CO2 emissions.

Information on these programs and LADWP’s many other rebates and incentives, as well as comprehensive information on energy conservation rates and tips for easy ways to reduce energy use, can be found at www.ladwp.com or by calling 1-800-DIAL DWP.

The Los Angeles Board of Water and Power Commissioners approved energy conservation rates in May 2008. Other major California utilities, including Southern California Edison, Pacific Gas and Electric, San Diego Gas and Electric, Glendale Water and Power and Pasadena Water and Power, utilize a similar rate structure to serve as an important incentive for conservation.

LADWP, even under energy conservation rates, continues to provide water and power services at rates 30 to 50 percent below those of other utilities in Southern California.

The Los Angeles Department of Water and Power was established more than 100 years ago to provide a reliable and safe water and electric supply to the City of Los Angeles residents and businesses. The LADWP serves approximately 1.4 million electric customers and 680,000 water service customers. For more information, log on to www.ladwp.com.

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