Los Angeles City Council rejects power utility rate hike

The Los Angeles City Council has turned down a power utility rate hike that Mayor Antonio Villaraigosa had said was vital to the city's fiscal health.

Council members voted 13-to-one Friday to reject the proposal to raise the Department of Water and Power rates by 2.7 cents per kilowatt-hour.

Villaraigosa previously told council members that the DWP would not be able to deposit $73 million into the city's general fund without the rate hike. He said the city then would not have enough money to complete the fiscal year.

The council plans to meet again Tuesday to recommend changes to the DWP proposal.

Messages left with the DWP and the mayor's office were not immediately returned.

Copyright 2010 The Associated Press.