DWP: Battle for Lower Electric Rates

Contrary to what was presented in your coverage (Oct. 20) of the seven municipalities fighting for lower electric rates from Southern California Edison Co., the Los Angeles Department of Water and Power does pay property taxes in the counties of Los Angeles, Inyo, Mono, Riverside and San Bernardino, as well as in Nevada and Arizona. It does not pay taxes for properties owned within the city of Los Angeles.

However, the DWP does support municipal services through a traditional 5% transfer of its gross revenues to the city’s general fund. Over the past 15 years, the DWP has contributed more than $1 billion to the city. This year, a record $197 million is slated to be transferred to support critical city operations such as police and fire. This amount is far greater than what would have been paid in taxes.

Setting the record straight is important. Despite its contributions to the city, the DWP has managed to keep its residential rates lower than those of SCE. We will continue to implement cost-cutting measures to keep rates low.

WILLIAM R. MCCARLEY

General manager Department of Water and Power