Municipal Service Committee Grapples With Electric Rate Increase Ahead of Final Optimized Strategic Plan

Pasadena residents will see an increase in electric rates, driven by infrastructure updates and rising energy supply costs, not the City’s 100% clean energy goal by 2030.

The Municipal Services Committee discussed the rate increase study at its Tuesday meeting. Councilmember Justin Jones highlighted the pivotal moment for the utility, emphasizing the opportunity to modernize systems and build a resilient future.

The committee unanimously guided Pasadena Water and Power to develop a two-year plan based on a projected 35 kwh rate in 2029, including strategies to finance increased capital spending through long-term debt.

“This approach gives us an off-ramp in 2028 to pause and assess where we are,” Jones said. Similar rate increases are affecting Edison, LA DWP, and nearby cities like Burbank and Glendale.

David Reyes, Pasadena Water and Power General Manager, noted the need to raise revenues due to capital requirements. City staff presented four cost scenarios, with two potentially achieving 100% carbon-free electricity by 2030.

Councilmember Jason Lyon expressed frustration with discussing the rate study before finalizing the Optimized Strategic Plan. “We aren’t ready to move forward until we have a clearer idea of what we’re doing with the 2030 plan,” he said.

Councilmember Rick Cole pointed out that costs remain the same across scenarios until Fiscal Year 29, and he moved to cut off projections at that point, which the committee approved.

“Electric rates are going up across Southern California,” Cole told Pasadena Now. “The Council’s goal is to moderate increases and find an affordable path to 100% renewable energy by 2030.”

In 2023, the Pasadena City Council unanimously approved the “Pasadena 2030” plan for carbon-free electricity. The discussed scenarios focus on local solar and battery storage development, aligning with the city’s broader climate neutrality goal.

Reyes emphasized that affordability must remain a key consideration in any proposed plan.