Glendale council approves up to $230 million electric revenue bonds; delays and spreads July rate increase
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Summary
The council authorized issuance of electric revenue bonds for Glendale Water and Power and approved a staff recommendation to defer a planned July rate increase to November and spread an 11.3% average adjustment across three years to reduce immediate customer impact.
The Glendale City Council on June 3 authorized the city to issue electric revenue bonds and approved staff’s request to defer and redistribute a planned electric rate adjustment.
At a regular meeting, council approved an ordinance authorizing the issuance of up to $230,000,000 in City of Glendale Electric Revenue Bonds, 2025 series. Staff described the bonds as the third tranche in a financing plan for electric system projects, including work at the Grayson Power Plant.
Council discussion and vote
City staff said the bonds would be issued payable from the Electric Works revenue fund and that the accompanying resolution would invite bids and finalize financing documents. Councilmember Brotman moved the ordinance and related resolution; the council adopted the measures by roll call (three in favor, two opposed). The roll call on the ordinance showed Council members Brotman and Kasakian and Mayor Najarian voting yes, with Council members Asatrian and Garpetian voting no.
Deferring and smoothing rate increase
Separately, Glendale Water and Power staff recommended deferring a scheduled July 1, 2025 electric rate adjustment and redistributing the 11.3% system-average increase across three years: 5.00% effective Nov. 1, 2025; 2.95% effective Nov. 1, 2026; and 2.95% effective Nov. 1, 2027.
Acting finance leaders said the shift would allow the utility to rely on higher-than-forecast non-rate revenues in the short term while preserving compliance with debt covenants. "This redistribution of the 11.3% over the 3 years…allows us to maintain our debt coverage ratio required by the bond covenant," said an assistant general manager for finance.
Council members said the change was a pragmatic way to reduce immediate pressure on customers. Councilmember Brotman said he opposed the underlying cost-of-service study that produced the increases but supported the deferral motion as a way to “provide what little relief we can to the residents.” Council voted 4–1 to defer and redistribute the increase (Council member Zazadarian abstained from the final vote). The resolution directing staff to return with updated rates by Nov. 1 passed by roll call.
Why it matters
The bond proceeds are intended to fund electric system projects the city says are needed to meet operational and reliability goals. The redistributed rate adjustments are intended to spread a planned revenue increase over a longer period so customers face smaller near-term increases while the utility preserves required financial covenants.
What the council required next
Staff were directed to return before Nov. 1 with an ordinance showing updated class-specific rates. City leaders said they would continue to monitor revenues and expenses and return if further changes are needed.
