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LADWP Faces Scrutiny Over Soaring Bills and High Overtime Pay

By Drooid · · How we work

In this breakdown

01

Core Event: Record Overtime Pay Amid Rising Customer Bills

In 2025 the Los Angeles Department of Water and Power (LADWP) paid its five highest-earning employees a combined $3.84 million, including nearly $2.1 million in overtime, according to wage records verified by the California State Controller. At the same time, median electricity bills rose 15 %–20 % year-over-year, prompting protests and a petition that quickly gathered more than 39,000 signatures.

New York Post

02

Background & Context: Payroll Growth and Utility Rate Pressures

LADWP’s total payroll and benefits bill climbed to $2.65 billion in 2025, up 8.3 % from the prior year. The utility employs 13,623 workers, paying $2.3 billion in wages plus $350 million in retirement and health contributions. Extreme-heat warnings tripled from five days in 2025 to fifteen days so far this year, straining the grid and boosting consumption.

New York Post

Visual evidence

Images from the story

Furious LADWP customers are demanding an independent audit of the utility as soaring electricity bills collide with revelations of massive employee salaries and overtime payouts. X/@carlosmcgnarlos
Furious LADWP customers are demanding an independent audit of the utility as soaring electricity bills collide with revelations of massive employee salaries and overtime payouts. X/@carlosmcgnarlosPhoto: nypost
LADWP defended the hefty overtime payments as a “necessary and cost-effective tool” to keep the lights on while the department struggles to fill critical positions
LADWP defended the hefty overtime payments as a “necessary and cost-effective tool” to keep the lights on while the department struggles to fill critical positionsPhoto: nypost
LADWP’s payroll and benefits bill soared to $2.65 billion in 2025, with 114 employees pocketing more than $500,000 apiece, according to California State Controller records. NBC
LADWP’s payroll and benefits bill soared to $2.65 billion in 2025, with 114 employees pocketing more than $500,000 apiece, according to California State Controller records. NBCPhoto: nypost
While Los Angeles ratepayers grapple with skyrocketing utility bills, LADWP’s five highest-paid workers collectively raked in nearly $3.84 million in a single year. abc7
While Los Angeles ratepayers grapple with skyrocketing utility bills, LADWP’s five highest-paid workers collectively raked in nearly $3.84 million in a single year. abc7Photo: nypost
Los Angeles Department of Water and Power (LADWP) employees repair a power pole damaged during the Palisades Fire in the Pacific Palisades. AFP via Getty Images
Los Angeles Department of Water and Power (LADWP) employees repair a power pole damaged during the Palisades Fire in the Pacific Palisades. AFP via Getty ImagesPhoto: nypost
Carlos McGnarlos posted an image of his LADWP bill (below). change.org
Carlos McGnarlos posted an image of his LADWP bill (below). change.orgPhoto: nypost
Furious Los Angeles residents confronted LADWP commissioners Tuesday over skyrocketing utility bills, questioning the city-owned utility’s spending and demanding greater accountability. Pedro Colo for CA Post
Furious Los Angeles residents confronted LADWP commissioners Tuesday over skyrocketing utility bills, questioning the city-owned utility’s spending and demanding greater accountability. Pedro Colo for CA PostPhoto: nypost

03

Data & Statistics

  • 114 employees earned over $500,000 each, collectively receiving $66.1 million (average $580,000).
New York Post
  • One mechanic earned $505,769 in overtime, bringing his total compensation to $760,685.
New York Post
  • Overtime represents about 5 % of LADWP’s $10.8 billion operating budget; total labor costs account for 18 % of that budget.
New York Post
  • Median residential electricity use increased 15 %–20 % in the latest bimonthly billing period.
LA Times

04

Official Statements & Responses

LADWP spokeswoman Kimberly Briggs defended the overtime as “a necessary and cost-effective tool” needed during emergencies such as the January 2025 Palisades fire and staffing shortages. She noted that training a power-system crew foreperson takes at least four years and that civil-service hiring rules can delay vacancy fills.

New York Post

Board President Allan Marks announced the immediate suspension of residential water and electricity shutoffs for the remainder of the year and said the board will develop recommendations to update the electricity rate ordinance, unchanged since July 2019.

LA Times

Mayor Karen Bass called the suspension “relief now” for residents facing unaffordable bills.

LA Times

Independent ratepayer advocate Timothy O’Connor warned that Proposition 26 limits the utility’s ability to charge beyond the direct cost of service, complicating rate reform and aid to low-income customers.

LA Times

05

Conflicting Reports & Gaps

LADWP claims overtime accounts for only 5 % of its $10.8 billion budget, yet it has not provided a detailed breakdown showing how much overtime stemmed from specific emergencies versus routine staffing shortages. The lack of transparency leaves ratepayers unable to assess whether overtime costs are truly “necessary and cost-effective.”

New York Post

06

What’s Next: Audit Calls and Shutoff Suspension

The board’s resolution to halt shutoffs will remain in effect for the rest of the year, though charges are still due. City Councilmember Nithya Raman pledged to ask Controller Kenneth Mejia to audit DWP’s rate structure and other city functions, emphasizing the need for transparency. The utility is expected to review and recommend updates to its rate ordinance, a process that will require City Council approval.

LA Times