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Public Hearing Scheduled On Proposed Water Rate Hike Increase to Take Effect in April

Published on Tuesday, January 11, 2022 | 5:55 am
 

The City Council unanimously approved Pasadena Water and Power’s request to hold a public hearing on a proposed 7.1 percent water rate increase to take effect in April.

The hearing, which will happen on March 14, will center on PWP’s proposal to increase commodity distribution charges on water bills, according to a city staff document.

PWP said rate adjustments are needed as revenues from existing rates were insufficient to meet the projected revenue requirements for the water system in the coming years.

The department’s analysis indicated that the revenue shortfalls were due to increases in the cost of purchased water from the Metropolitan Water District, higher operating and maintenance costs and reduced sales due to the city’s conservation efforts.

The increase in Commodity Charge will provide additional annual revenue of approximately $1.5 to $2 million while the increase in the Distribution and Customer Charge (D&C) will provide additional annual revenue of $1 million, according to the staff report.

The PWP is planning to increase these charges further by 2023. Under the proposal, the department will implement a 7.2 percent increase on the mentioned charges by January 2023.

The adjusted 2023 Commodity Charge is seen to provide additional annual revenue of approximately $1.8 million, while the increased D&C charge will provide additional annual revenue of $1 million.

As per staff report, the additional charges will not only offset reduced revenues but will also fund needed investments in infrastructure to produce, treat and distribute high quality water supply for the city’s customers in the coming years.

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