1 RESOLUTION NO. ________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GLENDALE, CALIFORNIA DEFERRING THE IMPLEMENTATION OF JULY 1, 2025 ELECTRIC RATE INCREASES SET FORTH IN ORDINANCE NO. 6106 AND LATER AMENDED BY ORDINANCE NO. 6025 UNTIL NOVEMBER 1, 2025 AND DIRECTING STAFF TO PREPARE AN ORDINANCE TO ADJUST AND REDISTRIBUTE THE 11.3% AVERAGE ADJUSTMENT OVER THREE YEARS — 5% EFFECTIVE NOVEMBER 1, 2025; 2.95% EFFECTIVE NOVEMBER 1, 2026; AND 2.95% EFFECTIVE NOVEMBER 1, 2027
WHEREAS, the City of Glendale (“City”), through the Glendale Water & Power Department (“GWP”), operates a municipal utility for the distribution of electrical energy to the residents of the City; and
WHEREAS, on November 28, 2023, the City Council adopted Ordinance No. 6106 establishing GWP electric rates and charges for a five-year period from Fiscal Year 2023-2024 through Fiscal Year 2027-2028 with system-wide average annual rate increases of 14.8%, 11.3%, 11.3%, 0% and 0%; and
WHEREAS, on April 2, 2024, the City Council adopted Ordinance No. 6025 which amended Ordinance No. 6106 relating to the implementation of the standby rates for medium and large business customers which would provide needed benefits and cost savings to said customers through a monthly peak demand versus a ratcheted 12- month peak demand; and
WHEREAS, the rate adjustments to date have had a significant impact on customers’ utility bills; and
WHEREAS, after a careful analysis of cash balances, reserves, and projected revenues from non-rate sources—such as sales to other agencies and interest income— GWP staff recommends deferring the 11.3% rate adjustment scheduled for July 1, 2025, to November 1, 2025, and adjusting and redistributing the 11.3% adjustment as follows:
5% effective November 1, 2025; 2.95% effective November 1, 2026; and 2.95% effective November 1, 2027 (percentage for outer years adjusted for compounding), as further explained in the Report Dated June 3, 2025 by the Acting General Manager of GWP; and
WHEREAS, the recommended adjustment and redistribution will shift the rate adjustments to occur after the peak customer usage season, reducing the near-term impacts to customer bills, while still allowing for the utility to recover the needed revenue programmed into operations and capital projects within the Cost of Service Analysis (COSA) timeframe; and
WHEREAS, for the reasons set forth above and in the Report Dated June 3, 2025 by the Acting General Manager of GWP, the City Council has determined that it is in the City’s best interest to defer the implementation of the electric rate increase scheduled to commence on July 1, 2025, until November 1, 2025 and direct GWP staff to return to the City Council in advance of the November 1, 2025 deferral expiration date 2 to present an Ordinance with updated rates to reflect the authorized adjustment and redistribution from 11.3%, 0%, 0% to 5%, 2.95%, 2.95 %.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GLENDALE, CALIFORNIA:
SECTION 1. The City Council hereby defers the implementation of the electric rate increase scheduled to commence on July 1, 2025, until November 1, 2025.
SECTION 2. The City Council authorizes GWP staff to adjust and redistribute the 11.3% adjustment originally scheduled for July 1, 2025 as follows a 5% adjustment to take effect on November 1, 2025, followed by additional average adjustments of
2.95% on November 1, 2026, and November 1, 2027.
SECTION 3. The City Council directs GWP staff to return to Council in advance of the November 1, 2025 deferral expiration date to present an Ordinance with updated rates to reflect the authorized adjustment and redistribution from 11.3%, 0%, 0% to 5%,
2.95%, 2.95 %.
SECTION 4. Severability. If any Section, subsection, clause, phrase, sentence or word of this Resolution or the application thereof to any person or circumstance is for any reason held invalid, the validity of the remainder of the Resolution or the application of such provision to other persons or circumstances shall not be affected thereby and shall not affect any other Section, subsection, clause, phrase, sentence or word of the Resolution that can be given effect without the invalid Section, subsection, clause, phrases, sentence, or word of this Resolution. The City Council hereby declares that it would have passed this Resolution and each Section, subsection, clause phrase, sentence and word hereof, irrespective of the fact that one or more Sections, subsection, clauses, phrases, sentences or words or the application hereof to any person or circumstance is held invalid.
Adopted by the Council of the City of Glendale on this ___ day of _________, 2025.
________________________________
Mayor
ATTEST:
_____________________________________
City Clerk
3 STATE OF CALIFORNIA ) SS.
COUNTY OF LOS ANGELES )
I, Suzie Abajian PhD., City Clerk of the City of Glendale, hereby certify that the foregoing Resolution No. _______________ was adopted by a majority vote of the Council of the City of Glendale, California, at a regular meeting held on the ______ day of ______________________, 2025, and that the same was adopted by the following vote:
Ayes:
Noes:
Absent:
Abstain:
________________________
City Clerk