If you’re a Los Angeles Department of Water and Power (LADWP) customer, you’ve probably noticed that electricity isn’t getting any cheaper. And if you’re paying attention to the political discussion surrounding utility rates, particularly during an election cycle, much of the criticism seems to land on whoever happens to occupy the mayor’s office.
But there’s a much bigger story here, one that goes back years and involves decisions made by the Los Angeles City Council, previous city leadership, and LADWP. One major part of that story is a program called LA100. LADWP held several public outreach workshops on this program. One of which I attended in 2025, when I Chaired the Southland Regional Association of Realtors Government Affairs Committee. It was projected long ago that the rates would be higher, and unfortunately will continue to go up.
What Is LA100, and Why Does It Matter?
In 2018, California enacted Senate Bill 100, establishing a statewide requirement to obtain 100% of retail electricity from renewable and zero carbon resources by 2045. Los Angeles decided that wasn’t fast enough.
In 2021, the Los Angeles City Council adopted a more aggressive goal: 100% carbon free electricity by 2035, ten years ahead of the state requirement. The proposal was introduced by Councilmembers Paul Krekorian and Mitch O’Farrell, seconded by then Council President Nury Martinez, and adopted during Mayor Eric Garcetti’s administration. The objective was to accelerate the transition away from fossil fuel electricity generation, reducing greenhouse gas emissions and improving air quality. Those are legitimate objectives. But accelerating a massive infrastructure transition by ten years has financial consequences.
And those consequences ultimately reach LADWP customers.
What Is This Going to Cost?
LA100 involves far more than replacing fossil fuel power plants (which are cheaper, more efficient, and functional in any weather) with solar panels and wind turbines. It requires substantial investment in energy storage, transmission lines, generating facilities, grid modernization, and technologies necessary to maintain reliable electricity when renewable generation isn’t available.
A UCLA report discussing the original LA100 initiative described a transition costing nearly $40 billion. That’s an estimate of a broad energy transformation, not simply the additional cost of accelerating the deadline. More recently, LADWP’s own financial modeling has projected substantial increases in electricity rates under its accelerated clean energy scenario.
At a May 2025 advisory meeting, LADWP discussed modeled rates reaching 71.7 cents per kilowatt hour under one LA100 scenario. That is a long range projection, not today’s residential electricity rate or an approved future tariff. The modeling also showed that the accelerated LA100 scenario would be more expensive than the reference scenario based on California’s SB 100 requirements. In other words, both approaches have costs. But moving faster adds financial pressure.
LADWP’s Own Watchdog Is Raising Concerns
In February 2026, the City of Los Angeles Office of Public Accountability, which provides independent oversight of LADWP, released an analysis warning that electricity rates and customer bills could experience accelerating increases.
The office identified several major cost drivers:
- Renewable energy and purchased electricity
- New low carbon generating facilities
- Modernization of aging electrical infrastructure
- Wildfire prevention and system reliability
- Customer programs and other operating investments
Its analysis also indicated that future electricity rate growth could exceed inflation. That’s significant, especially in a city already struggling with housing affordability, insurance costs, property taxes, and the general cost of living. Not every one of these expenses is attributable to LA100. Some infrastructure improvements would be necessary regardless of the clean energy deadline. But the accelerated transition is clearly part of the financial equation.
Who Is Responsible?
Here’s where the political discussion needs some historical perspective. Mayor Karen Bass did not originate LA100 or establish the 2035 deadline. Those decisions were made before she took office. The City Council adopted the accelerated policy in September 2021, under the previous mayoral administration. That doesn’t mean the current mayor, City Council, or LADWP leadership have no responsibility. They are involved in implementing the program, establishing priorities, reviewing budgets, and addressing affordability.
But there is a difference between creating a long term policy and managing the consequences of that policy years later.
LADWP is also a municipally owned utility, not a privately owned utility such as Southern California Edison. Its governance includes the Board of Water and Power Commissioners, city leadership, and City Council oversight. Understanding that structure matters when discussing accountability.
Was Accelerating the Deadline by Ten Years Worth the Additional Cost?
That’s a reasonable question, and one that deserves more public discussion. California already requires a transition to 100% clean electricity by 2045. Los Angeles chose to accomplish that objective by 2035. The accelerated schedule offers potential environmental and public health benefits sooner. But it also requires major capital expenditures on a compressed timeline.And those investments are taking place while households and businesses are already dealing with serious affordability challenges.
There’s another consideration: Technology continues to evolve. Energy storage, battery systems, and generating technologies are improving. Moving faster can deliver benefits sooner, but it can also mean making expensive commitments before potentially less costly technologies become available. That doesn’t automatically make the accelerated schedule a mistake. It does mean the costs, benefits, and alternatives should be continuously evaluated.
My Take
I’m not suggesting Los Angeles should abandon cleaner energy. Reducing pollution, improving reliability, and modernizing our electrical infrastructure are worthwhile objectives. Hey, I’m a San Fernando Valley Native, and grew up in an era when many days you couldn’t see the mountains because smog was so bad. But worthwhile objectives still need to be economically practical.
When government adopts an aggressive policy that goes beyond existing state requirements, it should be transparent about what that decision will cost, who will pay for it, and whether the benefits justify the additional expense. For homeowners, renters, businesses, and particularly people on fixed incomes, higher electricity bills aren’t theoretical. They’re another monthly expense competing with everything else.
And as someone who works in real estate and mortgage lending, I see how these accumulating expenses affect housing affordability. The mortgage payment is only one part of what it costs to own a home.
The next time there’s a discussion about LADWP rates, we should look beyond the latest bill and the current occupant of City Hall. The decisions that influence today’s costs were made over many years, by multiple administrations and elected officials. The public deserves to understand those decisions, their financial consequences, and what can still be done to keep electricity affordable. I hear very little from the candidates on realities. Just political spin for votes. Low income populations in Los Angeles can lower their utility bills through a combination of direct monthly discounts, cash grants, and emergency bill relief programs. The rest of us will be paying the full higher payment. Sad…
If you’d like to discuss what these changing market conditions mean for your home, your buying plans, or your financing options, feel free to reach out. In today’s market, having current information and a sound strategy can make all the difference.
Ron Henderson GRI, SRES, SFR, RECS, CIAS, CREN, GREEN
President/Broker
Multi Real Estate Services, Inc.
Chairman – OutWest Marketing Meeting (Real Estate Education)
DRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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