LA Utility Workers Earn Hundreds of Thousands as Residents Face Soaring Bills

The Los Angeles Department of Water and Power (LADWP) paid its five highest-earning employees a combined $3.84 million last year, with a significant portion of that amount coming from overtime pay, according to a California Post investigation. This comes as Los Angeles residents face increasingly high utility bills.

Four distribution supervisors and one electric distribution mechanic were among the top earners, with each of them receiving more in overtime than in regular pay. One mechanic's total annual wages reached $760,685, with $505,769 attributed to overtime. The highest-paid supervisor earned $779,192, including $434,281 in overtime.

LADWP's total annual payroll and benefits bill amounts to $2.65 billion. Last year, 114 employees at the department each earned more than $500,000, collectively making approximately $66.1 million. The department paid its 13,623 employees $2.3 billion in wages, with an additional $350.3 million allocated for employer retirement and health contributions.

Residents have expressed frustration with the rising costs. One resident, who owns a four-unit apartment building in Venice, noted that escalating energy bills are adding to other expenses, prompting consideration of selling the property. "I told her welcome to Los Angeles," the owner said, referring to a renter's surprise at the electricity costs.

In response to the high overtime payouts, LADWP stated that it is a "necessary and cost-effective tool" to maintain operations and restore power, especially during emergencies. The department cited events such as the January 2025 Palisades fire, severe storms, and extreme heat as reasons for increased overtime. A department spokeswoman noted that some staff worked weeks without a day off during the Palisades wildfire response.

LADWP also pointed to a shortage of highly trained electrical workers and lengthy civil service hiring processes as contributing factors to staffing challenges and the need for overtime. The training for a power-system electric line crew foreperson, for example, takes at least four years.

Critics, however, have voiced skepticism. Utility watchdog John Kobylt described LADWP as "a completely corrupt organization from top to bottom." A petition demanding an independent audit of the agency and relief from steep summer electricity rates has garnered over 39,000 signatures.

The department countered that overtime represents only 5% of its $10.8 billion budget, and total labor costs account for 18%. However, LADWP did not provide a breakdown specifying how much overtime was due to emergencies versus routine staffing shortages.

LADWP maintains that its electricity rates are lower than those of neighboring utilities. The city's independent ratepayer advocate has cautioned that electricity costs are expected to continue rising as Los Angeles pursues carbon-free power, necessitating upgrades to the aging electrical grid.