1 ORDINANCE NO. ______
AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE,
CALIFORNIA AMENDING ORDINANCE NO. 6025 ESTABLISHING THE
ELECTRIC RATES FOR GLENDALE WATER & POWER FOR FISCAL YEARS 2024 TO 2028 TO IMPLEMENT ADJUSTED AND REDISTRIBUTED
ELECTRIC RATES INCREASES EFFECTIVE NOVEMBER 1, 2025,
NOVEMBER 1, 2026 AND NOVEMBER 1, 2027
WHEREAS, the City of Glendale, through the Glendale Water & Power Department (“GWP”), operates a municipal utility for the distribution of electrical energy to the residents of the City of Glendale; and
WHEREAS, on November 28, 2023 the Glendale City Council adopted Ordinance No. 6016, implementing electric rates for Fiscal Years 2024 through 2028, which took effect on January 1, 2024; and
WHEREAS, on April 2, 2024, the City Council adopted Ordinance No. 6025 which updated the Standby Service Rates and Rider for standard Medium LD-2 and Large Business PC-1 including Time-of-Use (TOU) customers and proposing updates to provide needed benefits and cost savings to the customer through a monthly peak demand instead of a ratcheted 12 month peak demand and proposing extending the standby service rider to the Medium Business Dispatchable and Large Business Dispatchable TOU LD2B and PC1B rates; and
WHEREAS, on June 3, 2025, the City Council adopted Resolution No. 25-80, whereby it deferred the July 1, 2025 Electric Rate adjustment to November 1, 2025 and directed GWP to adjust and redistribute the 11.3% average adjustment scheduled to take into effect on July 1, 2025 as follows: 5% effective November 1, 2025; 2.95% effective November 1, 2026; and 2.95% effective November 1, 2027, and directed staff to return in advance of November 1, 2025 with an Ordinance with updated rates reflecting the authorized rate adjustment and redistribution; and
WHEREAS, staff, in the Report dated September 30, 2025 by the General Manager of GWP, has presented adjusted and redistributed electric rates for the remaining three years of the current Cost of Service Analysis (COSA) for implementation effective November 1, 2025, November 1, 2026 and November 1, 2027 as presented in the Rate Table attached hereto as Exhibit A; and
WHEREAS, the City Council has considered the reports and testimony of staff and the comments of the public regarding the same; and
2 WHEREAS, the COSA and proposed rate plan reflect previously approved law and legislative direction of the present and former City Councils including: (i) the requirements of Article Xl, Section 22 of the Glendale City Charter, which was approved by the voters in 1949 and has remained in the City Charter since that date; and (ii) the Public Benefits Charge set forth in Section 13.44.425 of the Glendale Municipal Code, which was first approved in 1997 as required by state law and subsequently amended in 1998, 1999, 2001, 2006 and 2008 and has remained in the Glendale Municipal Code, 1995 (“GMC”) without change since 2008; and
WHEREAS, the proposed electric service rates and charges, as set forth in Ordinance 6025 and as amended by this Ordinance, have been calculated on the basis of the reasonable costs incurred by GWP to provide electric service to GWP’s customers; and
WHEREAS, the proposed electric service rates and charges constitute charges imposed for one or more of the following reasons: (1) a specific City benefit conferred or privilege granted (California Constitution, Article XIIIC, §1(e)(1)) and/or (2) a City service or product (California Constitution, Article XIIIC, §1 (e)(2)).
WHEREAS, the proposed Ordinance is being presented for introduction on September 30, 2025 with anticipated adoption on October 7, 2025, which will make the effective date November 6, 2025; and
WHEREAS, because the Ordinance will reduce and redistribute the rates that would otherwise go into effect on November 1, 2025, the proposed Ordinance shall apply the redistribution retroactively to November 1, 2025 in order for the proposed adjusted and redistributed electric rates for the remaining three years of the current COSA to be implemented effective November 1, 2025, November 1, 2026 and November 1, 2027 as presented in the Rate Table attached hereto as Exhibit A.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE
CITY OF GLENDALE:
SECTION 1. Notice of public meetings at which this Ordinance was considered was properly given, and all oral and written presentations made to and heard by the City Council were properly considered.
SECTION 2. There is a reasonable relationship between the rates to be charged for the provision of various City services and the City’s costs in providing those services.
3 SECTION 3. The adjustment and redistribution which amends the Electric Rates attached hereto as Exhibit “A” and incorporated herein by reference:
a) D
o not exceed the actual or estimated reasonable costs to the City for providing the services to which the fees related; b) A
re reasonable and necessary to enable the City to provide the benefit or privilege, service or product to which they related; and c) H
ave been allocated in a manner such that the costs to the payor bear a fair and reasonable relationship to the payor’s burden on, or benefits received, from the City.
SECTION 4. Compliance with California Environmental Quality Act.
The City Council finds and determines that this Ordinance is not subject to the California Environmental Quality Act (“CEQA”). Pursuant to CEQA Guidelines Section 15273, CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges by public agency which the public agency finds are for the purpose of (1) meeting operating expenses including employee wage rates and fringe benefits, (2) purchasing or leasing supplies, equipment or materials, (3) meeting financial reserve needs and requirements, (4) obtaining funds for capital projects, necessary to maintain service within existing service areas, or (5) obtaining funds necessary to maintain such intra-city transfers are authorized by City Charter.
As set forth in the Report dated March 26, 2024 by the General Manager of GWP, the electric rate increases which were approved via Ordinance No. 6106 and those which are being recommended for approv al are for the express purposes of meeting existing operating expenses of GWP, purchasing supplies, equipment or materials necessary to operate the utility, funding certain c apital improvements necessary to supply electricity to the residents and businesses within Glendale’s service area, and to ensure the Glendale City Charter authorized intra-city transfer can be maintained.
SECTION 5. The City Council hereby adopts the amendments proposed herein and the electric rate schedule as set forth in Exhibit “A”, attached hereto and incorporated herein by reference.
SECTION 6. The City Council also directs that future electric rate implementations be authorized by City Council Resolution, unless otherwise required by applicable law.
SECTION 7. Severability. This Ordinance is adopted under the authority of the Charter of the city of Glendale and State law. If any section, subsection, clause or phrase is declared invalid or otherwise void by a court of competent jurisdiction, it shall not affect any remaining provision hereof. In this regard the City Council finds and declares that it would have adopted this measure notwithstanding any partial invalidity hereof.
4 SECTION 8. Effective Date. This Ordinance shall take effect and be in force thirty (30) days after the date of its passage.
SECTION 9. Retroactive Implementation of Redistribution and Application of Rate Schedule. The electric rate schedule as set forth in Exhibit “A”, attached hereto and incorporated herein by reference shall be implemented and applied retroactively to November 1, 2025 for the remaining three years of the current COSA with implementation effective November 1, 2025, November 1, 2026 and November 1, 2027 as presented in the Rate Table attached hereto as Exhibit A.
Passed by the Council of the City of Glendale on the _____ day of _______________, 2025.
____________________________
Mayor
ATTEST:
_________________________
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF GLENDALE )
I, Suzie Abajian Ph.D., City Clerk of the city of Glendale, certify that the foregoing Ordinance No. ___________ was passed 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 passed by the followed vote.
Ayes:
Noes:
Absent:
Abstain:
______________________________
City Clerk
EXHIBIT A