Municipal Services Committee Approves PWP’s 2021 Power Integrated Resource Plan, Which Includes Rate Hike

The Municipal Services Committee unanimously approved on Tuesday the Pasadena Water and Power’s (PWP) 2021 Power Integrated Resource Plan (IRP) Update, which may result in an estimated 2.7 percent average annual rate increase in customers’ electric bill.

The action is a prelude to submission of the Plan to the full City Council for a final vote.

During the Committee meeting, Power Resource Planning Manager Robert Castro said the Power IRP Update implementation will result in an annual increase of $0.002- 0.003 per kilowatt hour (kwh) for all customers.

Specifically, the estimated bill impact to an average residential customer consuming 500 kwh would be approximately $1.00-$1.50 per monthly bill or $12-18 per year.

The increased rates will cover the cost of procurement of power supplies and the cost to generate electricity. Rates are expected to increase further due to higher costs to maintain customer and distribution system infrastructure, regional transmission costs, and inflation.

According to Castro, future rate adjustments will be subject to City Council approval.

The Power IRP Update guides the city in ensuring the reliability of the city’s power supply as well as the reduction of the environmental impact of its overall energy portfolio.

The 2021 Power IRP is the revision of the power resource plan adopted in 2018 by the City Council.

The recommendations under the 2021 Power IRP Update include affirming that there will be no new long-term commitments for fossil-fueled power resources, achieving a 60% renewable portfolio standards by 2030, achieving 100% zero carbon electricity supply by 2045, maintaining local gas-fired generation to meet peak demands and ensuring local reliability through the planning period and purchase of at least 70 megawatts of firm resources by 2025.

The plan suggests that the PWP look into energy storage options and examine alternative fuel sources for local reliability. The plan also suggests refining forecasted growth of electric vehicle charging in Pasadena.

Based on the 2021 Power IRP Update, the portfolio will lead to GHG emission reductions of 88% by 2030.

Based on the staff report, all new resource or program procurement recommendations under the plan will be subject to future City Council approval.