Los Angeles Mayor Karen Bass called Monday, Oct. 26, for an independent audit of how the Los Angeles Department of Water and Power (LADWP) calculates and bills its rates. The move escalates her response to a summer of soaring utility costs that hit LADWP customers across the city, including homeowners in Bel Air and Holmby Hills.

The audit, which Bass wants conducted by a firm outside city government, would examine how rates are calculated, justified and billed, according to a press release from the mayor's office. It would also evaluate the cost of service and look at rate design to protect customers from unexpected spikes. Bass said the process must involve community stakeholders and the city's Ratepayer Advocate.

The LADWP Board of Commissioners is scheduled to take up the audit proposal and several other relief measures at a meeting Tuesday, Oct. 27, at 10 a.m. The board has not yet voted to authorize the audit.

"Angelenos are opening bills they did not expect and cannot afford, and they need relief now," Bass said in the announcement.

The call comes less than a week after Bass asked LADWP to pause all residential shutoffs for nonpayment through the end of 2026. Customers who cannot pay in full can enter payment arrangements at zero interest and no late fees, according to LAist.

Bills have ballooned after what LADWP called one of the hottest summers on record. Some customers told KTLA their charges tripled. One Canoga Park resident showed the station a past-due notice for $24,635.30. Canter's Deli in the Fairfax District was hit with a $35,000 bill over the summer, KTLA reported.

LADWP bills cover two months at a time. For the August-September billing period, 2% of the utility's 1.6 million customers received a bill over $3,000, and another 3% got bills between $2,000 and $3,000, according to LAist.

LADWP has maintained the spike stems from higher usage, not rates. David Hanson, the utility's interim general manager, told NBC Los Angeles that continuous air conditioning during a humid summer drove consumption up. But rates have also climbed about 8% over the past year and roughly 45% since 2023 for a typical household's electricity usage, NBC Los Angeles reported.

Beyond the audit, Bass called on the LADWP board to boost the utility's energy efficiency rebate program by 25%. The increase would cover upgrades such as cooling systems, efficient windows and appliances, according to the mayor's office. Bass also pushed for auto-enrollment in LADWP's Level Pay program, which spreads costs evenly across the year to prevent bill shock.

Starting in November, LADWP plans to send every residential customer more detailed breakdowns of electricity and water usage, the mayor's office said. The utility is also expanding outreach for assistance programs including Lifeline, EZ-Save and Level Pay.

Los Angeles City Councilwoman Nithya Raman, who is challenging Bass in the mayoral race, called for her own independent audit of LADWP's rate structure the previous week, the Westside Current reported.

No auditing firm has been named, and Bass has not announced a timeline for completing the review. Customers with billing questions can call (800) 342-5397.