Overcharged DWP Customers Would Get Tens of Millions Back Under Settlement

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A Los Angeles Department of Water and Power sign is seen in a file photo. (Credit: Robert Gauthier / Los Angeles Times)

A Los Angeles Department of Water and Power sign is seen in a file photo. (Credit: Robert Gauthier / Los Angeles Times)

The Los Angeles Department of Water and Power would credit or refund tens of millions of dollars to customers who were overbilled during the botched rollout of a new billing system, under a proposed class action settlement between the utility and aggrieved customers that was announced Monday.

The department says it wrongly billed $44 million in excessive charges after the new system went into effect. Chief Administrative Officer David Wright says the utility has already refunded or credited some of the money, reducing the outstanding sum that is still owed to customers to $36 million.

Under the proposed settlement, customers who were overbilled would get credit for 100% of the excessive charges on their bills. If they have shut down their accounts, they would be refunded the money.

The utility says that the vast majority of the billing credits and refunds would be small — about $10 or less — and that the money would be credited to bills or refunded even if a customer didn’t know there was a mistake.

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