A San Fernando Valley father said keeping the thermostat at 74 degrees during a brutal summer heat spell led to a staggering surprise: a roughly $3,300 September power bill from the Los Angeles Department of Water and Power.
The eye-popping charge prompted Micah Reed to post a video that went viral and launch a petition, tapping into frustration over how expensive it can be to keep a home safe and livable during extreme heat.
Here’s what to know
According to International Business Times, Reed lives with his wife and two sons.
“Am I powering the entire crypto mining grid of the San Fernando Valley, or did LADWP just decide that I pay my mortgage twice this month?” Reed asked incredulously in a social media video.
LADWP’s June-September high-season schedule coincides with the time of year when electricity demand typically rises, and its residential prices increase as homes move into higher usage tiers.
From July through September, LADWP applied a 5.69-cent-per-kilowatt-hour energy cost adjustment and a 6.934-cent incremental reliability cost adjustment, IBT reported. LADWP’s top residential tier was priced at 40.968 cents per kilowatt-hour for July through September, compared with 33.151 cents in the next quarter.
More background
The three-tier rate design is meant to promote conservation during high-demand periods, which the utility says can reduce strain on the grid and lessen the environmental burden of heavy electricity use.
Because cooling needs are typically greater in hotter parts of Los Angeles, LADWP assigns those areas a larger Tier 1 allowance. Under the standard monthly setup, Zone 2 homes get their first 500 kilowatt-hours in Tier 1 and the next 1,000 in Tier 2 before moving into Tier 3.
After he posted the video, Reed said thousands of other Los Angeles residents raised their own concerns about costly summer utility bills.
What’s being done?
Reed started a petition seeking “an independent audit and summer rate relief,” per IBT. He wants Los Angeles City Controller Kenneth Mejia to conduct a public audit of LADWP’s rate calculations, tier thresholds, and pass-through charges.
The petition also calls for larger Tier 1 and Tier 2 thresholds for July through September, arguing that households should not be pushed into costlier usage tiers just because they need to cool their homes during severe heat.
Reed is also asking for flexible monthly payment options, no-interest plans for households hit with unusually high bills, and limits on utility shutoffs during periods of extreme summer costs.
LADWP offers a residential time-of-use option, meaning rates vary by when electricity is used. According to the utility, customers may lower costs by shifting electricity-intensive activities, including air-conditioning use, to less expensive hours.
“Living in Los Angeles is already unaffordable enough. Running an air conditioner shouldn’t force families into debt,” Reed wrote in the petition, according to IBT.
Where can I learn more?
The huge bill shows how extreme heat and utility policies can send summer cooling costs soaring.
• In California, regulators approved a rule change that reduced community solar savings for renters and low-income homeowners.
• California utilities warn peak-hour air-conditioning use can add hundreds of dollars to bills.
• Across the U.S., home cooling costs fall when residents use fans and warmer settings.
• In Illinois, lawmakers moved to require data centers to report energy and water use.
Get TCD’s free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
