PWP on Track for Water Rate Raises

In the third-of-three scheduled public meetings, Pasadena Water and Power Department officials detailed plans Wednesday for an upcoming increase residential and commercial water rates beginning April 1, 2022, and increasing again in 2023, as approved by the City Council.

PWP customers could see a 13-17% raise in their water bills over the next year as new rates go into effect next month.

PWP Engineer Chris Ojeda led the presentation at Jackie Robinson Park by laying out the details of the Pasadena water system, explaining that PWP has a service area of 26 miles, serving a population of 172,000, with more than 38,000 water accounts. The water system itself consists of 520 miles of water mains, seven active wells, 14 reservoirs and 19 booster stations. Many of the original water mains actually date back nearly 100 years, said Ojeda.

The City collects 30-40% of local groundwater from the Raymond Basin, with an additional 60-70% of water imported from the Metropolitan Water District (MWD) Currently, he noted that the MWD indicates that there are sufficient water supplies to meet projected demands from 2020 through 2040, but that Western states’ water supplies are challenged by a prolonged drought.

The presentation also pointed out that Pasadena’s rate of consumption has only increased from just over 20,00 units to 28,376 units since 1952, while the population has increased from 35,000 to over 170,000—for various reasons, including better water management and conservation efforts.

The presentation also noted that a “billing unit” charged to customers is 748 gallons and that currently, it is priced at less than 8/10 of one cent per gallon. This translates, for example, to about 25 cents for a ten-minute shower, using a low-flow showerhead.

On average, customers with an average ¾ inch meter connection will see a 13% increase for 10 billing units, a 15% increase for 15 billing units; a 16% increase for 20 billing units; and a 17% increase for 30 billing units.

Customers with a 1-inch meter connection will see a 12% increase for 15 billing units; 14% increase for 20 billing units, a 15% increase for 30 units, and a 16% increase for 40 billing units.

After the rate change, according to PWP, customers will still pay an average of $7 for each tank of water delivered.

In addition, the new proposed rates will bring in an additional $2.5 million in revenue in 2022, and $3.8 million in 2023, but still leave a deficit of $9 million in 2022, and $10.5 million in 2023.

PWP expects to make up the variance with bond proceeds of $8 and $11 million, respectively, in those two years, which will create an overall deficit of 0.5 million in 2023.

The City Council will hold the first public hearing/first reading of the updated Water Rate Ordinance on March 14, and a second reading on March 21.

The new rates are slated to go into effect on April 1,  followed by a second rate increase on January 1, 2023.

More information on the proposed rates is available at www.PWPweb.com/ProposedWaterRateAdjustments.