The Department of Water and Power is asking for a 5% increase as part of an environmental agenda to encourage Los Angeles to use more solar energy.
The Mayor's Office says Villaraigosa will announce his proposal to add a "carbon surcharge'' to DWP customers' bills on Monday in an effort to end the city's reliance on coal.
The hike would raise the average utility bill by an estimated $2.50 per month.
The proposal is part of Villaraigosa's environmental agenda to make Los Angeles one of the cleanest major cities in the nation. The surcharge would help DWP tap into more renewable energy sources like wind, solar, and geothermal.
Critics say the timing of the rate hike couldn't be worse considering the city's financial situation.
"I think this is a tough time to ask people about any increase, unless you've made a very strong case to show that you have reduced operating costs as much as possible," Councilwoman Jan Perry told the LA Times.
The mayor has said he wants 20% of the DWP's power to come from renewables by December. Without the additional revenue, he will not be able to meet his goal.