Pasadena’s Small Businesses Face $35.20 in Monthly Fixed Electric Charges Under October Rates

Pasadena businesses receiving electricity under the city’s small-commercial rate classification now face $35.20 in fixed monthly charges, according to Pasadena Water and Power’s rate schedule effective Oct. 1.

The amount consists of an $18.20 monthly customer charge and a $17 grid-access charge for customers in the utility’s S-1 classification, which applies to electric service with demand below 30 kilowatts.

Those fixed charges are only part of a commercial electric bill. Businesses also pay charges tied to electricity consumption and, depending on their classification, electrical demand.

Under PWP’s October schedule, S-1 customers pay an energy charge of 14.117 cents per kilowatt-hour, a transmission charge of 1.609 cents per kilowatt-hour and a distribution charge of 7.081 cents per kilowatt-hour. Other applicable charges may affect the final bill.

The schedule also establishes different fixed charges for larger commercial customers.

Medium commercial customers receiving primary service under the M-1 classification face combined monthly customer and grid-access charges of $307.20. Medium commercial customers receiving secondary service under the M-2 classification pay $295 in combined fixed charges.

For medium and larger commercial accounts, the utility calculates billed distribution demand using the greater of the maximum measured demand during the current month or the highest demand recorded during the previous four months.

PWP’s commercial classifications encompass stores, offices, motels, other short-term lodging establishments, schools, churches, manufacturers and other commercial establishments.

The revised rates are part of a three-phase electric rate adjustment approved by the Pasadena City Council in March.

The second phase took effect Oct. 1, with each phase designed around an approximately 7% systemwide rate increase. Because the rate structure includes multiple components, the effect on individual customers varies according to their consumption and service classification.

The Pasadena Chamber of Commerce opposed the increases during the council’s consideration, arguing that additional utility costs would burden local businesses. The organization again highlighted the electric-rate changes in its Oct. 28 weekly member bulletin.

Pasadena Water and Power has attributed the adjustments to rising operating costs and the need to maintain and improve aging electrical infrastructure.

A third increase is scheduled for March 1, 2027, although the City Council directed a committee review of its necessity following implementation of the second phase.

Businesses can review current electric rates and use PWP’s online bill estimator to evaluate how the revised structure may affect their accounts.

Further information is available through Pasadena Water and Power at (626) 744-4005 or pwp.cityofpasadena.net.