Published : Monday, June 19, 2017 | 5:41 AM
Pasadena Water and Power electricity consumers could see a 2.7 percent to 3.9 percent increase in their monthly electric bills by July, when the utility starts collecting increased electric distribution charges and customer changes.
Following a public hearing on June 12, the Pasadena City Council approved the higher electric rates, which could increase PWP revenues by $5.34 million annually.
A sampling of the bill impacts released by the City projected that consumers using up to 400 kilowatt-hours per month of electricity could see a $1.77 average increase in their monthly electric bill, while those using up to 2,000 kWh could see an average $16.35 increase. Consumers who use up to 1,000 kWh could see a $7.92 increase in their monthly bill.
PWP recommended the increased rates to recover the increased costs to operate and maintain the electric distribution system, the portion of new debt service from the Electric Revenue Refunding Bond Issue of 2016 that is attributable to the distribution system, and to meet the requirement to provide necessary “pay-go” funding for capital investment in Electric System Projects.
Revenues from the distribution and customer charges account for about 39 percent of the operating revenues from electric rates.
Increasing the electric distribution charge is expected to result to an additional $4.8 million revenue annually, and an increase in the electric customer charge would result in an additional $0.54 million, PWP said.
PWP General Manager Gurcharan Bawa said the rates will go into effect on July 1, 2017, or shortly thereafter, subsequent to a second reading of the ordinance amending the electric rate schedule. The ordinance will amend the electric rate schedule in Title 13, Chapter 13.04 of the Pasadena Municipal Code.
With the increases, PWP’s overall power operating revenues will go up by 2.6 percent. PWP said the system-wide average rate adjustment resulting from this proposed rate action is 3 percent.