Op/Ed: BWP Customers Ask, Why are Water and Electric Rates Increasing? An Expert Explains

1
1441

This year, beginning July 1, 2023, BWP is proposing an electric system average rate increase of 8.5%, and a water system average rate increase of 9%. Next year, on July 1, 2024, the proposed rate increases are 8% for electricity and 9% for water. We understand this is potentially a large increase and appreciate the opportunity to explain the cost drivers to our community owners. Additionally, we offer bill management assistance programs to people who cannot afford this increase.

Why are we seeing a cost increase?
Over the last three years, the world has seen unprecedented effects of the COVID-19 pandemic. The impacts on the supply chain have driven up utility costs to previously unimaginable amounts, significantly above typical U.S. inflation. Locally, these increases impact the products we use to keep the water and power flowing to our community. The table below is a snapshot of the prices we are seeing on materials and goods, as was presented at our BWP Board Meeting on March 2, 2023. There are also impacts to substation rebuilds, up 67%; ductile iron pipe, up 75%; among many others.

To help offset the increases, BWP staff has aggressively looked for opportunities to cut or reduce costs, which has saved approximately $21 million in the last 12 months. In addition, BWP brings in external dollars like the $1.7M in CA utility assistance for our customers, to help with their unpaid utility bills. We are also aggressively pursuing funding from the recently passed bipartisan infrastructure bill and other sources that will help in many areas across the utility.

The cost increase of materials and goods is one of many issues we manage on behalf of the community to keep rates affordable. As part of our commitment to transparency, we will continue to share the issues impacting our utility, like the recent article by our Assistant General Manager of Water, Richard Wilson, explaining how all the rains impact Burbank’s water supply or my prior article on how we will use the electric bond monies for infrastructure, sustainability, and disaster resilience.

Programs that help customers with bill increases

As your community-owned utility, impacts on our customers are top of mind. We consider affordability in everything we do and focus on continuous improvement efforts to reduce costs and increase efficiencies. BWP also has a suite of programs to help all customers, regardless of income level.

BWP strives to provide transparency in our budget proposals and manage the impact of rate increases on our most vulnerable customers. We will continue to do so at the April 6, 2023, BWP Board Meeting, the May 9, 2023 City Council meeting, and the June 6, 2023 public hearing on rate increases.

Learn more

  • For more information about our financial help programs, please visit our website at burbankwaterandpower.com or contact us at (818) 238-3700.
  • Get involved! Attend a BWP Board Meeting. Visit the BWP Board Meeting page for more information.  
    BurCal Apartments8715

    1 COMMENT

    1. Yet you still spend in excess of $5,000.00 per year of OUR money to feed your employees and appointed board members, give FREE electricity to employees (who are among the highest paid workers in the city) to charge their cars, justifying it by saying “everyone does it”. What about the hundreds of thousands of dollars you and your employees spend on travel each year??? Additionally the BWP has a number of workers earning $500,000.00 plus per year. No Ms. Lindell – you have not done all you can to lower our utility bills.

    Comments are closed.