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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Resolution Amending Glendale Water & Power (“GWP”) Electric Rates for Standby Service Rider for Medium and Large Business Dispatchable Rates and Medium and Large Business Dispatchable Time-of-Use Rates.
1. Resolution Adjusting and Redistributing Rate Increases for Electric Standby Service Rider for Medium Business and Large Business Dispatchable Rates and Medium and Large Business Dispatchable Time-of-Use Rates effective November 1, 2025, November 1, 2026, and November 1, 2027.
COUNCIL ACTION
Item Type: Action Item
Approved for October 28, 2025 Calendar
EXECUTIVE SUMMARY
The City Council adopted the last electric rate increase for ratepayers in November 2023. The rates were based on a Cost-of-Service Analysis (“COSA”) covering a five- year period from fiscal year 2024 through fiscal year 2028. On April 2, 2024, the City Council adopted Ordinance No. 6025 to add the standby service rider for medium and large business dispatchable rates and medium and large business dispatchable time-of- use rates.
Subsequently, on October 7, 2025, the City Council adopted Ordinance No. 6042 to reduce and redistribute the rates that would otherwise go into effect on November 1, 2025. In that process, the standby service rider for medium and large businesses were inadvertently not included in the Rate Tables adopted by Council that evening.
The proposed Resolution corrects this by applying the redistribution of system average rates to the medium and large business dispatchable rates and the medium and large business dispatchable time-of-use rates.
RECOMMENDATION
Adopt a Resolution for the proposed redistribution and adjustment of the standby service rider for medium business dispatchable rates, the standby service rider for medium business dispatchable time-of use rates, the standby service rider for large business dispatchable rates, and the standby service rider for large business dispatchable time-of-use rates.
The recommended action will provide a rate adjustment for the medium and large business customers, and medium and large business customer dispatchable time-of- use rates, by redistributing the 11.3% system average increase scheduled for July 1, 29d
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2025 (deferred to November 1, 2025) to 5% increase effective November 1, 2025,
2.95% increase on November 1, 2026, and 2.95% increase on November 1, 2027.
ANALYSIS
The City Council adopted the last electric rate increase for ratepayers in November 2023. The rates were based on a Cost-of-Service Analysis (“COSA”) covering a five- year period from fiscal year 2024 through fiscal year 2028. On April 2, 2024, the City Council adopted Ordinance No. 6025 to add the standby service rider for medium and large business dispatchable rates, as well as medium and large business dispatchable time-of-use rates.
On October 7, 2025, the City Council adopted Ordinance No. 6042 to redistribute the rates that would otherwise go into effect on November 1, 2025. The proposed Resolution applies the deferral and redistribution, approved and adopted by the City Council, to the standby service rider for medium and large business dispatchable rates, and medium and large business dispatchable time-of-use rates, as those were inadvertently not included in the Rate Tables adopted by Ordinance No. 6042.
The proposed redistribution and adjustment extend the same benefit to medium and large business customers. Historically, GWP has had three customers thus far on the standard standby service medium business dispatchable LD-2 and the standby service large business dispatchable PC-1 rates.
The proposed Resolution applies the system average rate redistribution and reduction, which was approved and adopted by the City Council on October 7, 2025, to the medium and large business dispatchable rates and the medium and large business dispatchable time-of-use rates as those were inadvertently not included in the Rate Tables adopted by Ordinance No. 6042.
NewGen Strategies and Solutions, the City’s COSA consultant, has determined the appropriate rate adjustments for medium and large business customers. These updated standby service rider rates are set forth in the Rate Table attached hereto as Exhibit A.
The table below presents the results of the COSA analysis by customer rate class while meeting obligations set forth in Proposition 26.
Rate Adjustments by Customer Rate Class
R ate Class 11/1/2025 11/1/2026 11/1/2027 Cumulative
O verall S ystem 5.00% 2.95% 2.95% 11.30%
R esidential 6.10% 3.58% 3.58% 13.80%
S mall Business 5.63% 3.27% 3.27% 12.70%
M edium Business 3.29% 1.95% 1.95% 7.40%
Large Business 4.23% 2.50% 2.50% 9.50%
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If the proposed Resolution is adopted as recommended, it will be effective on November 6, 2025, concurrently with the effective date of Ordinance No. 6042. Because the proposed Resolution will reduce and redistribute the standby service rider rates for medium and large business customers and the medium and large business time-of-use rates that would otherwise go into effect on November 1, 2025, the proposed Resolution includes a provision which makes the implementation of the proposed adjusted and redistributed rates retroactive to November 1, 2025. Ordinance No. 6042 includes a provision allowing future rate implementations to be authorized by City Council Resolution.
STAKEHOLDERS/OUTREACH
Not applicable.
FISCAL IMPACT
Since GWP has a very small group of customers in this customer rate class, the fiscal impact of these rate adjustments is minimal. The overall impact of the rate-deferral and redistribution across all customer rate classes is estimated to be $41.2 million and can be absorbed within the existing COSA due to higher-than-forecasted non-rate revenues and savings in Purchased Power expenditures.
ENVIRONMENTAL REVIEW
The action requested herein is ministerial and thus not a project for the purposes of California Environmental Quality Act; therefore, CEQA does not apply.
ALTERNATIVES TO STAFF RECOMMENDATION
1. Not to adopt the Resolution to adjust and redistribute rate increases for electric standby service rider for medium business and large business dispatchable rates and time-of-use rates as proposed herein, in which case the standby service rider dispatchable rates and time-of-use rates and for medium and large business customers will default to the originally adopted rate increases approved in November 2023 of 11.3% on average for Fiscal Year 25-26.
2.Consider other alternatives not proposed by staff.
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ADMINISTRATIVE ACTION
Submitted by:
Scott K. Mellon, P.E., General Manager - Glendale Water & Power Prepared by:
Adrine Isayan, Assistant General Manager - Finance & Risk Management David Davis, Utility Finance Manager
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS / ATTACHMENTS
Exhibit A: Rate Table (adjustments to electric rates for standby service rider for medium business and large business dispatchable rates time of use illustrated in red font)