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Pasadena opens hearing on proposed electric rate increases; council continues matter for more study
Summary
Pasadena Water and Power told the council March 2 that cost and capital needs require revenue increases; staff proposed three 7% tranches phased over the coming year. The council opened the public hearing and continued it to March 23 for additional review and public input.
Pasadena Water and Power (PWP) opened a public hearing March 2 on proposed electric-rate adjustments and presented a cost-of-service study showing residential under-recovery. Staff proposed a phased approach of three 7% increases (phased over two fiscal years) to close the revenue gap while using reserves to smooth impacts for residential customers.
What staff said: PWP staff said the utility has not had a full rate study since 2014 and that operating and capital costs have risen materially. The recommended approach is intended to spread the increase, keep rates uniform among classes for the proposed tranche schedule, and preserve the utility's reliability and carbon-free planning goals. Staff said their analysis followed state and local guidance and that additional materials prepared for the Municipal Services Committee were posted to the record.
Public response and next steps: Speakers urged clarity on assumptions, asked for detailed comparisons with neighboring utilities, and requested more detail on the city's net operating surpluses and 2024 financials. PWP agreed to provide more detailed schedules and to return with final action at the continued hearing. Council voted unanimously to continue the public hearing to March 23, 2026 so staff can provide more analysis and members can consider Proposition 218 procedural implications.
Outcome: The public hearing was opened and continued to March 23, 2026; no rate changes were adopted on March 2.
