LADWP Electric Rates in 2026: Peak Hours & Rate Plan Options

Unlike most of California, which is powered by investor-owned utilities like PG&E or SCE, the City of Los Angeles gets its power from a public utility: the Los Angeles Department of Water and Power (LADWP).

While LADWP historically offered much cheaper electricity than its neighbors, aggressive infrastructure upgrades, extreme summer heatwaves, and structural rate hikes have caught up to Angelenos. As of 2026, average residential rates have steadily climbed to around 24 to 28 cents per kilowatt-hour (kWh) depending on your tier, zone, and temperature adjustments.

While still lower than PG&E, LADWP bills are rising fast, and summer air conditioning can easily trigger higher electricity costs.

Jump ahead:

• LADWP Rate Plans
• Going Solar as an LADWP Customer
• Frequently Asked Questions

 

 

2026 LADWP Rate Plans at a Glance

LADWP offers two basic rate plans for residential electricity customers. The “Standard Tiered” plan features flat rates that only increase if you use more than your allotment of Tier 1 electricity during a billing cycle. The “Time-of-Use” plan features rates that fluctuate based on the time of day, day of the week, and month.

Here is how these 2026 options stack up:

Rate Plan	Peak Hours	Price per kWh	The Strategic Advantage
Standard Tiered (Schedule R-1A)	None (Price is based purely on total volume used)	Lowest: 24 cents Highest: 41 cents	You get a set allotment of cheap energy (Tier 1). As long as you stay under it, you avoid the much pricier Tier 2 and Tier 3 rates.
Time-of-Use (Schedule R-1B)	1 PM – 5 PM Weekdays Only	Lowest: 25 cents Highest: 35 cents	Deeply discounted energy for 20 hours a day.If you shift heavy appliance use to mornings, nights, or weekends, you save significantly.

LADWP separates residential customers by climate zones (Zone 1 for cooler coastal areas like Santa Monica/Venice; Zone 2 for the hotter Inland/San Fernando Valley areas). These climate zones determine how much electricity you can use per month at lower-cost Tier 1 pricing.

Check your Tier 1 allotment based on your climate zone here.

 

Why Solar is Different (and Better) under LADWP

If you live in LA, you have a massive strategic advantage over the rest of California when it comes to solar.

While investor-owned utilities moved to the highly restrictive “NEM 3.0” rules (which slashed solar export values by 75%), LADWP still has a much friendlier Net Energy Metering (NEM) structure.

✅ 1-to-1 Energy Credits: LADWP still credits you for your excess daytime solar generation at a near 1-to-1 retail rate. So, you can “sell” your excess solar power at the same price you buy electricity from the grid.

✅ Bypassing the Tiers: Because LADWP’s Tiered rate plan charges dramatically more the more energy you use, a solar system safely keeps you out of high-cost Tier 2 and Tier 3 brackets.

✅ The TOU Solar Strategy: By switching to the Time-of-Use plan, your solar panels produce peak energy right when LADWP values it most (midday). You rack up massive credits, then draw cheap power from the grid overnight.

With LA utility rates continuing their upward climb to fund clean energy grid mandates, installing solar is the single most effective way to lock in low, predictable electricity costs for the next 25 years.

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Frequently Asked Questions

What is the average LADWP electricity rate in 2026?

The average residential rate for LADWP customers ranges from 24 to 28 cents per kWh. However, because LADWP utilizes a tiered volume system, heavy energy users—especially those in the hotter San Fernando Valley (Zone 2) using heavy air conditioning—can quickly find themselves paying much higher Tier 2 or Tier 3 rates.

What are the peak hours for LADWP Time-of-Use?

LADWP’s peak pricing window is remarkably short compared to other utilities. On the TOU plan, peak hours are 1 PM to 5 PM, Monday through Friday. All other hours—including the entire weekend and major holidays—are billed at lower off-peak or base rates.

Does California’s NEM 3.0 apply to LADWP solar customers?

No, NEM 3.0 does not apply to LADWP. Because LADWP is a municipally owned public utility rather than an investor-owned utility, it is not bound by the CPUC’s NEM 3.0 decision. LADWP solar customers still enjoy traditional, favorable net metering credits.

What is the difference between LADWP Zone 1 and Zone 2?

LADWP divides Los Angeles into two climate zones to fairly distribute baseline energy allowances. Zone 1 (Coastal/Milder) includes areas like West LA and parts of South LA. Zone 2 (Inland/Hotter) covers the San Fernando Valley and areas prone to extreme heat. Zone 2 households receive a higher Tier 1 baseline allowance to accommodate necessary air conditioning.

Is a home battery necessary for solar with LADWP?

While a battery backup system provides excellent protection against local grid outages and maximizes energy independence, it is not financially mandatory under LADWP like it is under PG&E. Because LADWP still offers favorable net metering credits for daytime generation, solar-only systems still offer an incredibly strong return on investment.