SAN FRANCISCO — Los Angeles Mayor Antonio Villaraigosa ended a standoff with the City Council over electricity rate hikes, bringing to a close a political battle of wills that had hurt the city’s ratings and delayed a $720 million power revenue bond deal.

Villaraigosa agreed to accept a 0.6-cent per kilowatt hour, or 4.5%, rate increase that he and the Los Angeles Department of Water and Power previously rejected. The utility wanted a 0.8-cent rate increase as the first step in a year-long, 2.7-cent per kilowatt hour rate hike that would have amounted to a 22% rate increase.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.