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LA City Transfer Settlement

  • Provides a credit for electric services
  • Opt-outs must be filed by deadline
  • Administrator contact info available

Consumers and the word “surcharge” tend to clash.  When questions arise regarding whether or not a surcharge should have ever been in place to begin with, things can escalate rather quickly.  A class action lawsuit called Eck, et al. v. City of Los Angeles has recently come to settlement terms resolving allegations that the Defendant embedded an additional 8 percent surcharge into LADWP electric rates in order to fund transfers to the city’s Reserve Fund to support general operations.  The allegations claim the rates exceed the costs of providing electric service, thus the surcharges constitute taxes which have not been approved by the electorate as required by the California Constitution and the California Government Code.  It should be noted that the court HAS NOT decided in favor of one party over another as both parties have agreed to a pending settlement.  Class Members who want nothing to do with the settlement can begin the opt-out process by going to LA City Transfer Settlement page and clicking the File Opt-Out tab.

More on the Settlement

  • The total amount of the Settlement Fund created to reimburse Class Members is $52 MILLION
  • Funds will be distributed as a per kilowatt-hour credit to the electric rates of LADWP customers
  • Those who wish to opt-out of the settlement must file prior to the date of December 27th, 2017
  • The decision on whether or not to approve the settlement will be made at the Fairness Hearing

The Fairness Hearing is currently scheduled to be held on February 14th, 2018 at 9 AM Pacific Standard Time.  Those who don’t want to file an opt-out form online can elect to submit the form directly to the Settlement Administrator by mail, email, or fax.  The Settlement Administrator can also by contact by those with questions regarding the settlement.  Those who prefer more of a self-help approach to getting answers can review the FAQs posted at the top of the LA City Transfer Settlement page.

Settlement Administrator

  •  PO Box 404007, Louisville, KY 40233-4007
  • Phone – 877-306-5238
  • Fax – 866-715-4512



Published in Legal