Municipal services

Municipal Services Committee approves PWP’s 2021 Integrated Electricity Resource Plan, which includes rate hike – Pasadena Now

The Municipal Services Committee on Tuesday unanimously approved Pasadena Water and Power’s (PWP) 2021 Integrated Resource Plan (IRP) update, which could result in an estimated average annual bill increase of 2.7% electricity from customers.

The action is a prelude to submitting the plan to the full city council for a final vote.

During the committee meeting, Energy Resources Planning Manager Robert Castro said the implementation of the Power IRP update will result in an annual increase of $0.002 to $0.003 per kilowatt hour (kwh) for all clients.

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

The increased tariffs will cover the cost of electricity supply and the cost of electricity generation. Tariffs are expected to increase further due to rising customer infrastructure and distribution system maintenance costs, 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 to ensure the reliability of the city’s electricity supply as well as reducing the environmental impact of its overall energy portfolio.

The IRP Energy 2021 is the revision of the electricity resources plan adopted in 2018 by the City Council.

Recommendations from the 2021 Electricity IRP Update include asserting that there will be no new long-term commitments to fossil energy resources, achieving a 60% portfolio of energy by 2030, achieving 100% zero-carbon electricity supply by 2045, maintaining local gas-hot generation to meet peak demands and ensure local reliability throughout of the planning period and the purchase of at least 70 megawatts of firm resources by 2025.

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

Based on the Power IRP 2021 update, the portfolio will drive GHG emissions reductions of 88% by 2030.

According to the staff report, any new recommendations for sourcing resources or programs under the plan will be subject to future approval by City Council.

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