Hearing on Proposed Electric Rate Increases Scheduled to Continue at Monday’s Council Meeting

Local residents will have their say on the proposed increase to electric rates that City staff say are necessary to maintain reliable service and modernize the city’s power system.

The proposal comes from the Pasadena Water and Power Department following a rate study and months of community outreach.

If adopted, the plan would implement systemwide effective rate increases of 7% for each customer class in phased adjustments in March, October and again in March 2027.

The increases are expected to generate about $84 million annually and would be used to fund operating expenses, capital improvements and financial reserves.

According to the department, current electric rates are insufficient to meet projected revenue needs, with an estimated $67.9 million shortfall over the next two years.

Officials cited rising equipment costs, reinvestment in aging infrastructure and increasing power supply expenses as key drivers. Since 2019, cable prices have nearly doubled and transformer costs have risen about 75%, the report states.

According to City officials, the restructuring is not a flat across-the-board increase. For residential customers, impacts would vary based on usage. A household using about 500 kilowatt-hours per month could see a decrease of roughly $5.75 under the proposed structure, while a higher-usage home consuming about 1,000 kilowatt-hours per month could see an increase of about $14.46, according to sample bill comparisons provided by the city.

The proposal would also modernize the city’s rate ordinance by removing outdated provisions and moving specific rate amounts into a separate resolution, allowing future adjustments without amending municipal code language. The changes anticipate expanded time-of-use pricing, advanced metering technology and support for electric vehicles and other distributed energy resources.

City staff said that even with the proposed adjustments, Pasadena’s residential electric rates would remain competitive compared with regional utilities. Officials also emphasized programs aimed at supporting income-qualified customers and energy efficiency efforts.