Class Eligibility

If you were a retail electricity customer of the LADWP at any time during the period January 29, 2012 through September 14, 2017, you are a Class Member and will be bound by the terms of the Settlement. You will receive Settlement benefits if you are an LADWP power (electricity) customer at the time the Settlement is finally approved. You need not take any action to receive these benefits.

Estimated Amount

8% credit

Proof of Purchase

No

Case Name

Eck, et al. v. City of Los Angeles, et al.
Case No. BC577028
Superior Court of the State of California for the City of Los Angeles

Case Summary

The persons who filed this class action are called the “Plaintiffs” and the City of Los Angeles, the Los Angeles Department of Water and Power (“LADWP”), and the Los Angeles Department of Water and Power, Board of Water and Power Commissioners are the “Defendants.” A class action lawsuit that Plaintiffs filed in the Superior Court of California, for the County of Los Angeles, called Eck, et al. v. City of Los Angeles, Case No. BC577028, alleges that the Defendants impose electric rates that exceed the cost of providing electric service. More specifically, the lawsuit contends that an additional eight percent (8%) surcharge has been embedded into LADWP electric rates in order to fund transfers to the City’s Reserve Fund, where funds are ultimately used to support the City’s general operations. Plaintiffs allege that because the rates exceed the costs of providing electric service, the surcharges constitute taxes which have not been approved by the electorate as required by the California Constitution and the California Government Code. More information can be found at www.LACityTransferSettlement.com, by calling 1-877-306-5238, or by writing to Class Counsel, whose addresses may be found below in Paragraph 10. A copy of the Settlement Agreement, and other relevant documents, are available at www.LACityTransferSettlement.com, and is also on file with the Court.

Settlement Pool

N/A

Deadline to Opt Out

12/27/17

Contact


LADWP Electric Rate Case
Settlement Administrator
P.O. Box 404007
Louisville, KY 40233-4007
Email: admin@lacitytransfersettlement.com
1-877-306-5238
1-866-715-4512

6 responses to “City of Los Angeles Embedded Electric Surcharge Class Action Settlement”

  1. Jamila Bradford says:

    I have DWP sense Nov 2016

    ADMIN – Hi Jamila,

    That makes you a class member.

  2. Tina Carter says:

    Charing to much money

  3. Lisa Paterson says:

    I was sharing utilities with a friend

    ADMIN – Hi Lisa,

    Sharing does not count. The account holder will get all the benefits.

  4. Lisa Paterson says:

    NEW ADDRESS IS
    536 N. BUENA VISTA ST. APT.1
    HEMET CA. 92543
    THANK YOU!

    ADMIN – Hi Lisa,

    Leaving your address here does not result in anything at all.

  5. Jason says:

    I was a retail electricity customer of the LADWP during the period January 29, 2012 through September 14, 2017. I have since Left the state and have no account with them. What benefit would a 8% credit do for me?

    ADMIN – Hi Jason,

    That is why we are suggesting people opt out and get their own lawyer.

  6. Wooderson says:

    The credit is 8% of all charges I’ve paid to LADWP over the years? Meaning if I paid $150,000 to them over the course of a couple of years within this settlement period I would be receiving a $12,00 credit? Is this a credit that they will apply to our current bills until used up or are they going to be sending out checks? I presume it’s the former, but it would be nice to have confirmation of the terms of the settlement dispersal. Anyone?

    ADMIN – Hi Wooderson,

    Not over the years but only for the period for which they applied the surcharge. As for the rest of the terms they are as follows:

    The Settlement provides the following benefits:

    First, beginning on July 1, 2017, the City and LADWP will deduct eight percent (8%) from the amounts otherwise charged to all LADWP retail electricity customers pursuant to the 2016 Electric Rate Ordinance. The expected savings for electric ratepayers over the next three fiscal years is estimated to be Two Hundred Forty-Three Million Dollars ($243,000,000).

    Second, and in addition, the City has agreed to create a Settlement Fund in the amount of Fifty-Two Million Dollars ($52,000,000) (the “Settlement Fund”). After administrative expenses, attorney’s fees and expenses, and service awards are paid from the Settlement Fund, the balance will be distributed as a per kilowatt-hour credit to the electric rates of LADWP retail electricity customers. The Settlement Fund represents the City’s best estimate of eight percent (8%) of the retail revenues that it collected on its 2016 Electrical Rate Ordinance from April 15, 2016 through the date it began deducting eight percent (8%) from the amounts otherwise charged to all LADWP retail electricity customers pursuant to the 2016 Rate Ordinance: July 1, 2017. This estimate will be reconciled in the future with the actual amount charged and if the eight percent (8%) of the actual retail revenues is greater than Fifty-Two Million Dollars ($52,000,000), such additional amounts will be credited to electric rate customers.

    Third, the City has agreed to not transfer any funds it collects through the 2016 Electric Rate Ordinance in the future from the LADWP to the City. The City has also agreed to “cap” its transfers from the 2008 Electric Rate Ordinance at eight percent (8%).

    Fourth, subject to Court approval, the City has agreed to make a payment of Six Hundred and Fifty Thousand Dollars ($650,000) to Alliance for Children’s Rights and Westwood Recreation Complex, d.b.a. Friends of Los Angeles, 26 U.S.C § 501(c)(3) non-profit charitable organization(s), that have been designated by the Plaintiffs.

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