But there hasn't been much conversation about the other side of the equation involving the city's powerful Department of Water and Power. The DWP is a beacon of light in California at the moment. Ratepayers in Los Angeles can expect reductions. The failure of deregulation is that, with the generation capacity squeeze, market prices rose with demand rather than fell. All these factors resulted in the loss of control of generation that left utilities at the mercy of those who have not been shy about taking full advantage.
Business depends on reliable, low-cost energy.
The Valley uses more water per capita than the rest of the city but pays only a slightly higher bill because part of its use is subsidized by the other side of the hill, where the lawns are smaller. It uses less electricity per capita than, say, the Harbor area because it is largely residential. But water and power don't balance each other out when it comes to revenue. When the secession movement started a few years ago, rosy pictures were easy to draw. There were explanations for declining services, but no one addressed the sense of alienation and the belief that someone else was getting a bigger piece of the pie.