The Los Angeles Department of Water and Power said Monday it expected to recover more than $60-million it failed to collect last year as it rolled-out a problematic new electronic billing system.
A written statement from DWP Chief Financial Officer Philip Leiber said the loss was a, “temporary delay,” and said it was a result of delays in billing and the decision to stop disconnecting many customers for non-payment.
A non-public DWP memo first reported in the Daily News warned City officials if the revenue problems were not resolved – they could reduce the annual transfer of DWP profits to the City’s general fund.
The City depends on the DWP money to balance its budget.
“We expect to recover this money over time,” Leiber said in the statement, and said the agency has cash reserves to cover the, “variances thus far.”
The new billing system – that began service last November -- caused tens of thousands of DWP customers to be wildly overbilled for electric service they did not use and was blamed for thousands of other customers not receiving any bills.
-- Eric Leonard (@LeonardFiles)