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Pasadena Water and Power is planning a comprehensive customer engagement iniative for its ongoing Electric Rate Study, and is scheduled to present the approach to the Municipal Services Committee on Tuesday, March 11. The strategy intends to ensure community involvement as the utility develops new and potentially higher rates that align with the City’s carbon-free electricity goals.
According to a staff report from David Reyes, Interim General Manager, PWP has completed the first phase of its Electric Rate Study, including data gathering for cost-of-service analysis and development of a draft financial model. This model will serve as the primary tool for analysis and evaluating rate adjustments.
The study is designed to create a rate plan that meets both community and utility objectives while collecting sufficient revenue.
“The goal is reached by sending price signals to customers that communicate key information and incentivize behaviors that benefit both the community and the utility,” Reyes explained in the report.
PWP’s approach recognizes that “a one-size-fits-all strategy is insufficient” for public engagement. The plan includes targeted outreach to different customer segments and employs multiple communication channels including digital advertising, content marketing, online input tools, workshops, and partnerships with community organizations.
The engagement plan identifies four key objectives: increasing awareness of the value that a publicly-owned utility brings to the community, empowering customers by gathering insights on their priorities, improving policy effectiveness through clear policies that guide future financial planning, and demonstrating transparency to enhance public trust in the process.
“Actively involving customers in the rate-setting process enhances transparency, builds trust, and fosters a deeper understanding of cost structures and service value,” according to the report.
“By segmenting participation based on usage patterns and customer profiles, PWP can customize its outreach to better understand and implement incentives that promote conservation, efficiency, and sustainability. This approach not only supports policy goals, such as reducing peak demand and encouraging renewable energy adoption, but also ensures that costs are fairly distributed among customer classes, preventing undue burdens on any one group.”
PWP will conduct targeted market research to listen and learn about customer expectations and priorities before making recommendations to the City Council. The engagement strategy is structured around three phases: Introduction (launching rate design and exploring rate considerations), Listen (developing tools to solicit customer feedback), and Broadcast (widely sharing information on rate proposals and potential bill impacts).
Two community events have been scheduled as part of the outreach effort: “Shaping PWP’s Energy Future: How Safe, Reliable and Affordable Power Services are Provided to You” on March 26, and “Shaping PWP’s Energy Future: Clean Energy and Rates Forum” on April 24. Both dates are subject to change, with information to be widely distributed.
The first event will provide “an introduction to all things about Pasadena Power. Why PWP was formed, how we get our power and deliver it to you, what programs are available to help you use electricity efficiently, and how you can save on your power bills with PWP programs.” The April forum will “hear from the community about their key issues and priorities surrounding power services with a cross-section of information ranging from upcoming projects, a rate design game and information about the energy future being developed in the Optimized Strategic Plan.”
The utility is integrating the Electric Rate Study with its Optimized Strategic Plan to align with Resolution 9977’s goal of achieving carbon-free electricity by 2030. Staff has collaborated closely to refine future load growth projections and ensure key financial and operational assumptions are aligned, supporting informed decision-making through the next waypoint in 2028.
Several municipal code modifications have already been approved or recommended as part of the study, including the removal of direct access and related tariffs, amendments to long-term contract provisions, and restructuring reserve-related code sections into consolidated working capital policy targets and minimums.
The Electric Rate Study follows a six-phase approach — Clean Up, Policy, Tools, Design, Scenarios, and Outcome — with PWP currently in the Tools phase, building financial models and tools to forecast future revenue needs based on cost-of-service analysis and economic projections.
During the implementation phase, PWP will customize information and events to different customer segments and adapt to customers’ preferred communication methods, including website, social media, in-person events, bill inserts, or other available tools.
The Municipal Services Committee meeting takes place at 4:00 p.m. on March 11 in the Pasadena City Hall Council Chamber, Room S249. The public can attend in person or view the meeting via livestream at http://pasadena.granicus.
For more information about the Electric Rate Study, residents can visit the dedicated website at https://pwp.Cityofpasadena.
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