Pasadena Water Consumers Will Pay More for Less If Council Approves PWP Plan

Pasadena water consumers will be paying more money for less water by next year, if the city decides to start collecting a higher water Capital Investment Charge (CIC) in January to compensate for decreased water revenue because of the prolonged drought.

A notice from the City Manager’s office says the city has scheduled a public hearing at 7 p.m. on January 11 to received public comment on the proposed formula before finally setting the new CIC rate for Fiscal Years 2016 and 2017.

The notice says the CIC increase is primarily due to the drought and California Gov. Jerry Brown’s executive order mandating a statewide reduction in water use. Pasadena’s mandate is to reduce its water usage by 28 percent.

“Since the CIC is a charge per billing unit of water used, less revenue is being collected due to reduced sales. As a result, an increase in CIC is necessary to provide sufficient revenues to maintain the City’s investment in its water delivery infrastructure,” the notice said.

If approved by City Council on January 11, the increase to the average monthly water bill for most of Pasadena’s customers will be approximately 10 to 11 percent.

Pasadena Water and Power said the CIC in the past has provided about $8 million to $9 million in annual revenues, but with Gov. Brown’s executive order, annual revenues from CIC are projected to decline by more than $2 million. The proposed rate increase will provide some $10.5 million in revenues which PWP says is the amount needed to fund capital projects and to pay for PWP’s debt obligations.

The notice for the January 11 public also included tables showing proposed CIC rates. For water delivered during the summer, April 1 to September 30, Area A customers will be paying $1.07 from the current $0.62 CIC; Area B customers will pay $1.44 from the current $0.84.

For water delivered in the winter months, October 1 to March 31, Area A customers will be paying $1.007 from $0.588; Area B customers will be paying $1.36 from the current $0.795.

At the public hearing, any property owner or interested person may appear and speak on any matter relating to the water CIC increase. Written protests will also be considered if submitted prior to the public hearing.

Written protests must be submitted on or before 5 p.m. of January 11 to the Office of the City Clerk at 100 N. Garfield Avenue, Room S228 at City Hall.