PWP Says Market Factors Like EV’s, New Home Electrification Are Propelling Revenue Surge

A Pasadena Water and Power official told members of the City Council’s Municipal Services Committee Tuesday that the utility is experiencing a surge in revenues.

PWP is forecasting $274.781  million from its power-related services in 2024, a $40 million jump over this fiscal year’s predicted $233.306 million and a 21% jump from its pandemic-reduced $225.471 million in 2022.

“We’re facing changing industry market conditions,” PWP Acting Assistant General Manager Jeremy Marquette said at the Municipal Services Committee meeting on Tuesday, May 9. 

“We’re seeing things like EVs  [electric vehicles]. We’re seeing homes going through an electrification process especially with new construction and we are also seeing a return back to pre-pandemic levels with our load,” he added. 

When reporting PWP’s recent accomplishments, Marquette said that PWP has achieved Renewable Portfolio Standard of 40% in calendar year 2021 and has reduced Greenhouse Gas emissions by 68% below 1990 levels, in calendar year 2022, exceeding State mandates. 

Cities in California are required to reduce their overall greenhouse gas emissions to 1990 levels by 2020 and 40% below 1990 levels by 2030.

Marquette, who stressed that PWP continues to trend above its neighboring utilities in terms of reliability, also reported that PWP has maintained APPA’s prestigious Reliable Public Power Provider “Platinum” designation for providing the highest degree of reliable and safe electric service. 

According to Marquette, a lot of sustainability projects were completed in 2023. Among them is the Del Mar Garage EV Charging Station. 

“There’s been a lot of work too with Robinson Park and Victory Park,” he said. 

In April 2022, PWP launched a new platform that will enhance its customers’ access to information online. “We’re starting to see some of the benefits of our customers adopting online services,” said Marquette about the new program.

Marquette also said in 2023, PWP worked hard to obtain federal funds for customers impacted by COVID-19 pandemic. 

In total, PWP, through these funds, has provided $8 million direct utility bill assistance for customers. 

“This year alone, we applied another $1.7 million to our power customers,” said Marquette. 

Marquette said the 2024 PWP power budget will see a $13 million General Fund transfer. 

“The General Fund transfer is based on the power performance of the previous year. We took some hits with the volatile energy prices specifically during the winter but we will make the General Fund whole with a $23 million transfer in 2025.” 

Meanwhile, PWP is seeing a revenue of $78.312 million from water related services in 2024.

This is an increase of over $2 million in comparison to the 2023 revenue.

According to Marquette, in 2023, PWP maintained continuous delivery of high quality water to service areas throughout unprecedented drought conditions and continued the Water System and Resources Plan implementation. 

In 2024, PWP will prioritize the enhancement of local groundwater sustainability and the repair and replacement of aging infrastructure, among other things, according to Marquette.