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# Who’s Making Money Off LADWP and Edison Company Customers?
January 11 2024
Written by Liz Amsden.
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ACCORDING TO LIZ - How many Angelenos are being tormented by phone calls and door-knockers waving the red flag of 20%, 22% and greater increases by the LADWP, by SoCal Edison, and the California Gas Company?
Too many.
Of course prices will rise; it’s a fact of life like death and taxes.
But the utility companies are regulated while the scammers trying to bottom-feed on people’s fears generated by last year’s bills are not.
Prices skyrocketed last winter from a confluence of factors, many of which don’t exist this time around.
The eastern seaboard has been unseasonably warm this year; the heavy snowfall this past weekend does not equate with the bitter cold of last winter, so there have been no excessive demands to compete with California needs.
So, now swindlers are pressuring homeowners with the frightening possibilities, first “20% increases this winter” and, more recently, a “22% raise on your bill in February” to scare people into entering into immediate contracts for their services.
Our own weather has actually been on the warm side – I’ve put on a sweater and added an extra blanket to my bed but, since lighting the pilot at Thanksgiving (which does add a modicum of warmth), have not needed to turn on my heat. Of course, I do what we all should in cold weather – checked all the flashing and caulking, keep my doors and windows closed, including to rooms not in use.
The scammers from whom I receive the most calls (and annoying door-knocks) generally identify themselves as Green Energy or Green Power Network, or Green something-or-other else – because most of these scams capitalize on people’s warm and fuzzy feelings about doing good for the environment.
But, BEWARE!
Green Energy and its partners in crime are out there to make money for themselves, not fight global warming or lower your utility bills.
You can find the same programs along with money-saving rebates and reputable advice from your utility company or existing state programs without an exorbitant middle-man mark-up. Check out:
- [LADWP](https://www.ladwp.com/ladwp/faces/ladwp/residential/r-savemoney/r-sm-rebatesandprograms?_adf.ctrl-state=vmsrqlqr4_17&_afrLoop=145573308962434)
- [SoCal Edison](https://www.sce.com/residential/rebates-savings/rebates)
- [California Gas Company](https://www.socalgas.com/save-money-and-energy/rebates-and-incentives/natural-gas-appliance-rebates)
Too often these fraudsters prey on people living on the edge of financial survival who tend to be convinced by pushy salespeople and are less likely to stand up to aggressive marketing techniques and complicated contracts.
And once these shady characters are in your house and privy to your payment information, there are just too many opportunities to steal your identity and make a potentially bad situation far, far worse.
Many levels of these operations work on commission from above, from solar lenders and from installers, and will lie and cheat and stop at nothing to sign people up. Too often their sub-contractors are fly-by-night operations that won’t complete the job, back up their work, pay those they employ (who may now come after the homeowner because the home is more of an asset than the padlocked office door of their purported employer).
Some pay in cash and don’t carry workers comp which may put the homeowner on the hook if there’s an accident. And heaven forbid your new purchase breaks down after a few months… so who’s backing the guarantee?
Also, look at the big picture: one “happy” customer reported he was saving $20 a month, another $35 a month. But if they’re paying $150 to $200 month year after year for their new solar system… how is THAT a saving??
Will that debt go away when they sell their house?
That’s not to say that there are not good vendors out there but they usually have more than enough business through referrals, and don’t have to spend on door-to-door pushers or call-center script-readers. Their bids may be higher but... you get the quality and service you pay for.
Personally, I’d love to go greener but after insulating my house as I renovated it over the years, putting in triple-pane windows, caulking the floor boards from beneath and replacing all my lights with LEDs, my LADWP bill ranges from $225 to $275 every two months of which more than half is for water and garbage pick-up. Adding solar would mandate a flat fee of $50 a month last time I checked, and I’d be paying more on top of that because, even with my minimal needs, my small roof would not provide sufficient power.
And gas – my house has its original gas heater and – with all the insulation and a sweater on cool days – it still does the job. I work from home and that cold month last winter – one that may never come again – ran me $95 for one month. My December 2023 bill just dropped in my inbox: $39.99. In summer, my bill is under $10 for my stove, oven and dryer.
And yes, that will be going up but – think about the cost to replace my old heater – thousands and thousands of dollars. Even if I am in this old house for another ten years, saving maybe $150 a year won’t cover half the cost.
And with the electronic ignition in modern models, there is no running the heater when the power goes out.
Start spreading the news, warn your neighbors.
It costs money to pay people to call and stalk door-to-door looking for victims, and the companies behind these foot-soldiers have only one mantra: “what’s in it for me.”
These “deals” have to cover all their expenses – promotion, materials, labor... and significant profits for each layer of the business. Based on what I’ve been told, most warranties these folks give aren’t worth the price of the paper on which they are written.
I live in an area covered by the LADWP and, when so many calls claimed to be from them, called customer service. Not only did they deny any involvement, the woman with whom I spoke had a litany of complaints about peeps in her hood trying the same scam representing they were from Edison.
After she dismissed one from her doorstep, she called her neighbors to beware. Smart move.
Last winter, the LADWP warned Angelenos to be on the lookout for fraudsters impersonating workers and are threatening to shut off customers' water and power if they didn’t immediately fork over money for purportedly unpaid bills. Same-o this year.
Report suspicious calls to the company's support line at 1-800-DIAL DWP (1-800-342-5397). The only way a customer can pay their bill over the phone is by using the automated payment system, NOT through a live operator.
There are laws to protect you, and third-party payments using Zelle and gift cards or through ATMs, kiosks, or Bitcoin machines won’t help. Even if you are in arrears, your first call should be to the customer service number on your bill, never to a number scammers give.
Take the time to figure out what is right for you in your unique situation and investigate what programs are offered at all government levels. Maybe a deal really is a deal but do your homework first so you don’t receive any unpleasant surprises.
**Remember:**
- **Push back against high-pressure tactics and take the time to do your own research.
- Thoroughly read the contract, and get trusted help to advise you if you don’t understand any part of it.
- Check the legitimacy of the company and any sub-contractors, that they are all bonded and licensed and current with the state.
- Get references – ones you find through trusted referrals, NOT those that scammers provide.
*(Liz Amsden is a contributor to CityWatch and an activist from Northeast Los Angeles with opinions on much of what goes on in our lives. She has written extensively on the City's budget and services as well as her many other interests and passions. In her real life she works on budgets for film and television where fiction can rarely be as strange as the truth of living in today's world.)*
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