The City Council on Monday conducted the second reading of an ordinance that will increase electricity rates in phases.
The increase will generate revenue for maintaining and upgrading the City’s power system.
The amendments to the City’s Light and Power Rate Ordinance are intended to ensure sufficient funding to operate and reinvest in the City’s electrical grid as costs for supplies and infrastructure continue to rise.
Under the plan, rates will increase by 7% in three phases, a structure adopted by the Council to lessen the impact on residential customers.
Sometime after the second phase, City officials will check to see if the third phase remains necessary.
The rate increases are expected to generate approximately $84 million annually, with the additional revenue used to offset higher operating costs and fund improvements to the electrical system.
City officials said the rate design process has been iterative, incorporating public input and feedback from the Municipal Services Committee and the City Council, with revisions made to proposals developed by Pasadena Water and Power staff.
The ordinance will amend the City’s Municipal Code, which establishes the rates, terms and conditions for providing electrical service to customers.
The changes are needed to address rising operational costs and to support increased capital investment required to maintain the long-term integrity of the City’s electric system.
The amendments will apply to all Pasadena Water and Power customer classes, including residential, commercial, industrial and municipal accounts.
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