For some customers who've had to deal with frustrating billing errors and overcharges, this news may not come as a surprise: a new business journal ranked the Los Angeles Department of Water and Power as one of America's most hated companies.
The Business Insider compiled data from the American Customer Satisfaction Index which rates companies "based on thousands of consumer satisfaction surveys."
Of the 19 most hated companies in the country DWP came in at number 13-- below Bank of America, which faced customer ire over "excessive fees" and "foreclosure horror stories" and AT&T, which got an earful from irate iPhone customers over "dropped calls" and "limited coverage."
According to the survey, common complaints about the DWP included billing problems and disputes over proposed rate hikes within the next three years.
"Consumers claim the LADWP is intentionally issuing bills late in order to collect hundreds of thousands of dollars in late fees," the survey said.
An NBC LA investigation recently exposed how the DWP failed to properly bill residents and small business owners.
In many cases, DWP employees would demand months of back payments, sometimes totaling tens of thousands of dollars from customers. In some instances, when customers could not afford the unexpected charges, DWP would threaten to cut off electrical service.
LADWP's General Manager Ron Nichols testified before an LA City Council committee, blaming the problems on an old computer system.
"We have a 1970's customer information system ... that we're literally holding together with bailing wire," Nichols said. "It's that dire of a circumstance."
In addition to computer problems, the LADWP has been seeking a rate increase in order to afford the new renewable energy commitment set forth by the city of Los Angeles. The hike could amount to more than 15 percent for water and 16 percent for power over the next three years.
DWP spokesman Joe Ramallo questioned the accuracy of the survey.
"We have no idea how ACSI got their information or how they arrived at their rankings," Ramallo told the Daily Breeze.
"Our rates remain among the lowest of major California utilities for both water and power and our reliability is strong, but needs further investment," Ramallo said.
As for billing problems, the DWP says it has implemented a new system, according to Nichols.
"We have formed a committee in our customer service department to review these issues," said Nichols. "We have a direct line and a point person for people with back billing issues."
The top 5 "most hated" companies according to the survey were: at number five, Charter Communications; number four, Comcast (which now owns NBC Universal); number three, Time Warner Cable; number two, Delta Airlines; and number one, Potomac Electric.
