Residential Adjustment Billing Factors

LADWP’s electric rates are made up of base rates and pass-through adjustment factors, also known as power rate adjustment factors.

The power pass-through adjustment factors fluctuate up or down periodically, in accordance with the power rate ordinances, with many of the expenditures for cost recovery approved by LADWP’s Board of Water and Power Commissioners. For information on the previous two year’s approved expenditures for the power pass-through adjustment factors,  go to Approved Expenditures for the Water and Power Pass-through Adjustment Factors.

Historical and Projected - Residential Adjustment Billing Factors

Energy Cost Adjustment (ECA)    
An Energy Cost Adjustment (ECA) shall be added to all bills on the basis of total energy use. The ECA recovers the costs of fuel, purchased power including renewable resources, and demand side management costs, including revenue losses through application of the Energy Cost Adjustment Factor (ECAF).

Energy Subsidy Adjustment (ESA)    
An Electric Subsidy Adjustment (ESA) shall be added to all applicable bills under each service schedule and any contracts wherein it is specified. The Residential Service ESA is based on total energy use. The General Service ESA is based on demand, as determined for the Facilities Charge. The ESA recovers the cost of credits given to Lifeline and Low-Income Residential customers, credits to General Service customers subsidized under Enterprise Zone and Disaster Recovery rates, as well as credits to City Agencies resulting from zero billing under Schedules LS-1 and TC, through application of the Electric Subsidy Adjustment Factor (ESAF).

Reliability Cost Adjustment (RCA) and Incremental Reliability Cost Adjustment (IRCA)    
A Reliability Cost Adjustment (RCA) shall be added to bills under each electric service schedule, and any contracts wherein it is specified. The Residential Service RCA shall be based on total energy use. The General Service RCA shall be based on demand, as determined for Facilities Charge. The RCA recovers the operation, maintenance and debt service expenses of the Power System Reliability Program (PRP), through the application of the Reliability Cost Adjustment Factor (RCAF). The Incremental Reliability Cost Adjustment (IRCA) recovers costs associated to Operations & Maintenance and debt service related to Power Reliability Program costs and legacy RCA under-collection.

Other Incremental Adjustments - Variable Energy Adjustment (VEA), Capped Renewable Portfolio Standard Energy Adjustment (CRPSEA), Variable Renewable Portfolio Standard Energy Adjustment (VRPSEA)    
The incremental rate ordinance contains some additional charges. The first three charges are comparable to the previous Energy Cost Adjustment (ECA) factor, but provide more granularity and distinguish between renewable and non-renewable energy:

• Variable Energy Adjustment (VEA) – Recovers costs associated with fuel, non-renewable portfolio standard power purchase agreements and economy purchases, legacy ECA factor (ECAF) under-collection, and base rate decoupling from energy efficiency impact.
• Capped Renewable Portfolio Standard Energy Adjustment (CRPSEA) – Recovers costs associated with renewable portfolio standard Operation & Maintenance (O&M) and debt service and energy efficiency programs.

• Variable Renewable Portfolio Standard Energy Adjustment (VRPSEA) – Recovers costs associated with renewable portfolio standard market purchases and costs above and beyond any O&M and debt service payments.