LA Dept. of Water and Power Reaches $44M Settlement Over Faulty Billing System

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The Los Angeles Department of Water and Power has agreed to pay $44 million to settle a class action lawsuit alleging customers were overcharged for water, garbage, sewer and electricity due to a faulty billing system.

Lead plaintiff Antwon Jones filed the Los Angeles Department of Water and Power class action lawsuit on behalf of himself and thousands of other LADWP customers in April.

Under the terms of the water and power settlement agreement, the city of Los Angeles will reimburse customers 100 percent for any improperly charged bills sent through LADWP’s new Customer Care and Billing system. This will include credits to current customers and refunds to former customers who are Subclass Members in the LADWP lawsuit settlement.

According to the LADWP settlement, the city will also correct the defects in the Customer Care and Billing system to make sure it functions properly. The city of Los Angeles has agreed to invest $20 million to permanently correct the new billing system.

In 2013, Los Angeles hired PricewaterhouseCoopers to update the LADWP’s 40-year-old billing system. The Los Angeles Department of Water and Power class action lawsuit filed by plaintiff Jones claimed that the faulty billing system provided by PricewaterhouseCoopers led to the overbilling of thousands of Los Angeles customers.

According to a recent lawsuit filed by LA City Attorney Michael N. Feuer, PricewaterhouseCoopers has been accused of creating a faulty billing system that blocked the city from billing about 180,000 customers when it caused more than 11 percent of LADWP meters to fail.

After days of mediation and based on extensive investigation of the claims brought by plaintiff Jones prior to the negotiations, both parties agreed to the settlement agreement as a “fair, cost-effective and assured method of resolving the claims of the Settlement Class.”

If approved, the LA water and power settlement would be open to Class Members who are LADWP customers who were improperly over-charged for electric, water, sewage or sanitation services between the dates of Sept. 3, 2013 and the present, and who are entitled to credits or refunds for electric, water, sewage or sanitation services and/or for participation in the LADWP’s solar incentive program from Feb. 13, 2010.

Most of the LADWP customers will not need to file a settlement claim. According to the attorneys handling the LA Department of Water and Power settlement, the credits or refunds should be given automatically.

For LADWP customers who are shown to owe money for water, garbage, sewer and electricity but were not given a timely bill, the city will only charge them for the last nine months.

If the settlement is approved, all financial compensation will be paid out to eligible Class Members no later than June 30, 2016.

More information about the LADWP class action settlement, including Claim Forms, will be available at www.ladwp.com/billinginfo.

The plaintiffs are represented by Jack Landskroner of Landskroner Grieco Merriman, LLC and by Michael J. Libman of the Law Offices of Michael J. Libman.

The LA Department of Water and Power Lawsuit Settlement is Antwon Jones v. City of Los Angeles, Case No. BC577267, in the Superior Court of the State of California, County of Los Angeles, Central District.