Why haven't their neighbors imitated them? LADWP charges too low a price for water. This wonderful utility can't keep the lights on in my neighborhood and I see bursting water pipes all around wasting water. Does LADWP have any Ph.D. economists on payroll? If "yes", please get in touch with me and I will pay you $5 for corresponding with me by email.
Many non-economists implicitly assume that all demand curves are perfectly inelastic. In English this means, that consumers do not change their behavior as the price goes up. It is time that we tested "the law of demand". Give the price system a chance, and we will enjoy a smooth adaptation path to handling climate change in the Southwest.