Pasadena Water and Power Avoids Winter Price Spike with Stable Electric Rates

Despite a winter of soaring natural gas bills for Californians and proposed rate increases from Southern California Edison, Pasadena Water and Power has held steady, keeping its electric rates unchanged in December and January.

Throughout Southern California, utility bills more than doubled this winter compared to one year ago, according to the California Public Utilities Commission.

Southern California Edison (SCE), one of the nation’s largest electric utilities, providing electricity service to more than 15 million people in California, is seeking to increase rates by 4.4%, which would take effect on June 1. 

The SCE last increased residential rates on June 1, 2022, by 1.7%. 

Despite increasing costs of natural gas, Pasadena Water and Power’s electric rates did not go up in December and in January. 

PWP’s water rates were adjusted by about 7% on May 1, 2022 while the electric rates were adjusted by about 1% on July 1, 2022. As per Pasadena Water and Power (PWP), the increases were necessary due to higher costs of water, fuel and electricity that Pasadena produces to serve its customers.  

Currently, PWP is implementing the Winter Electric Rates Schedule. It will transition to the Summer Electric Rates Schedule in June. 

According to PWP, despite a higher level of outstanding accounts receivable, the overwhelming majority of customers have continued to pay their bills. 

“The total amount of utility services billed but not paid within 30 days has increased from the same time period one year ago but PWP expects that the majority of the unpaid balances will ultimately be collected over time,” PWP’s statement reads. 

Based on total utility billings during the most recent fiscal year, more than 97% of unpaid bills is eventually collected.

According to US census data, roughly 22 percent of American households were unable to pay an energy bill last year.

Governor Gavin Newsom recently urged the federal government to investigate the recent spike in natural gas prices which drives the cost of electricity up. 

In a letter to the Federal Energy Regulatory Commission, the Governor requested that the agency “immediately focus its investigatory resources on assessing whether market manipulation, anticompetitive behavior, or other anomalous activities are driving these ongoing elevated prices in the western gas markets.”

Meanwhile, millions of Californians will soon see relief from soaring utility bills, with credits of $90 to $120 showing up on gas and electric bills starting March after CPUC voted to accelerate the timeframe in which residential energy customers will receive a Climate Credit on their bills. 

The $90-$120 credit will be applied to residential utility customer bills for customers of PG&E, Southern California Edison, San Diego Gas & Electric, and Southern California Gas Company. 

Customers of Bear Valley, Liberty, PacifiCorp, and Southwest Gas will also receive an accelerated credit of varying amounts.

More information on other state and federally funded programs that provide assistance to customers with past due utility bills can be found at PWPweb.com/BillAssistance.