LAUSD objects to water rate increase

BUDGET: School chief says proposed DWP hike would siphon off classroom funds.

Add the Los Angeles Unified School District to those protesting rate increases proposed by the Department of Water and Power.

In a letter to the DWP, Superintendent John Deasy expressed concern that the rate increase would harm the financially strapped district and asked that discounted rates be offered to educational institutions.

"We are already struggling to provide adequate resources for our students to learn and succeed," Deasy wrote to DWP General Manager Ron Nichols, who has been leading workshops throughout the city on the agency's long-term needs.

"Any increase in utility costs will further deplete our general fund, reducing educational resources and placing jobs for teachers, principals, librarians and other support staff at risk."

Deasy said the district is the DWP's largest customer, paying some

$67 million a year.

State law prohibits setting special rates just for LAUSD, but there is no restriction on a general discount for public and private educational institutions, Deasy said.

Councilwoman Jan Perry, chairwoman of the City Council's Environment and Energy Committee, sympathized with Deasy's request.

"I think it is very thoughtful and something we should look at from the start," Perry said. "It also gives us a chance to work with

the school district on efficiencies that can be explored in how they use water and power."

DWP officials had no direct response to Deasy's letter, saying they were reviewing all comments on the proposed rate increases.

"An open dialogue on rates is in progress with our customers and we will take all our customer input into consideration as part of the process," the utility said in a statement.

The agency also encouraged residents to review the proposals and make comments at www.ladwp.com.

To provide funding to upgrade aging water and power equipment, Nichols has said the agency needs to raise power and water rates up to

15 percent over the next three years.

Perry has said she would not approve a rate hike until the city appoints an executive director of the new DWP Office of Public Accountability, which will include a ratepayer advocate.

Deasy estimated the proposed increases would cost the school district $3 million to $4 million annually over the next three years.

Deasy also argued that schools, unlike private industry, cannot pass on the increased costs to parents.

"That means that each dollar spent on a utility bill is a dollar that is not used in the classroom to fund teacher supplies or student needs," Deasy said.

Three years ago, the DWP was forced to pay $160 million to the LAUSD and other educational institutions after they filed a lawsuit claiming they'd been overcharged.

Source: http://www.dailynews.com/news/ci_18349588?source=rss

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