Pasadena Utility Reports Strong Financial Recovery, Advances Clean Energy Goals

Pasadena Water and Power has released its fiscal year 2024 annual report, documenting the municipal utility’s recovery from last winter’s natural gas price surge while detailing progress toward environmental sustainability goals. The 40-page report, covering operations through June 30, 2024, shows improvements across both power and water operations.

The Power Fund reported a $79 million increase in net position, primarily driven by retail revenue growth of $30.6 million, despite a 6% decline in overall electricity usage. This financial strengthening followed the utility’s recovery from natural gas price surges in Winter 2022/2023 that had previously depleted energy purchase reserves.

The utility maintained a year-end cash balance of $394.4 million.

Following the January 2023 approval of Resolution 9977 by the Pasadena City Council, Pasadena Water and Power incorporated ambitious clean energy targets into its 2023 Integrated Resource Plan, adopted in December 2023. The plan accelerates California’s 2045 clean energy target by 15 years, aiming to source all electricity from carbon-free resources by 2030.

In water operations, Pasadena Water and Power reported

generating 40% of the City’s supply through local sources, primarily from the Raymond Basin aquifer, resulting in $2.8 million in savings over buying the water. This achievement helped earn the Water Fund an upgraded “AAA” rating from Standard & Poor’s, matching its existing “AAA” rating from Fitch.

The utility, which employs over 400, reported undertaking substantial infrastructure investments, including power delivery modernization and advanced metering technology implementation.

Major water projects include both the Arroyo Seco Canyon Recharge facility and the Sunset Reservoir Project, aimed at ensuring long-term system reliability.

According to the report, Pasadena Water and Power provides electricity to nearly 137,000 people across 23 square miles and water services to more than 161,000 residents in Pasadena and portions of Altadena and San Gabriel across 26 square miles.

The utility maintains $164.9 million in long-term debt for the Power Fund and $57.1 million for the Water Fund. It is operated as a nonprofit municipal utility.

The report also details the utility’s public benefit programs, which include energy efficiency assessments, home improvement rebates, and rate assistance programs for vulnerable community members. These initiatives are funded through a dedicated public benefit charge, representing $4.959 million in annual expenditures.

David Reyes currently serves as Pasadena Water and Power’s Interim General Manager, overseeing operations under the direction of the Pasadena City Council and City Manager. City officials recently launched a recruitment drive for Pasadena Water & Power’s next permanent General Manager.

The complete annual report may be found on the City of Pasadena’s website by clicking here.