Customers of the Los Angeles Department of Water and Power may one day see a carbon surcharge added to their bills. Mayor Antonio Villaraigosa has proposed a surcharge to help shift the utility away from coal power, reports SCPR.
Rates may rise 8-28 percent, reports the Los Angeles Times.
For so-called larger Tier 3 customers, who use the most power but make up only 6 percent of the customer base, electrical bills would spike 24.4-28.4 percent.
Villaraigosa said that deadlines for cutting the city’s carbon emissions, as required by AB32, along with volatile markets mean that higher rates are coming at any rate.
By adding a carbon surcharge that supports development of renewable energy, he said the city could wean itself off coal by 2020.
Failing to meet the emissions cuts could cost the city “hundreds of millions” in fines, said David Freeman, interim chief of the utility.
Critics say that the utility must do all it can to reduce operating expenses before adding surcharges.