Stevenson, Garrett
Subject:FW: Item 2(a) May 9th Meeting
From: William M. Paparian < >
Sent: Friday, May 5, 2023 6:35 AM
To: Stevenson, Garrett <[email protected]>
Subject: Item 2(a) May 9th Meeting
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When the Pasadena Water and Power Department (PWP) announced an average monthly increase of $14 per month for our electric bills it was less than forthright. In fact, in a February 28, 2023, memo to the City Council Municipal Services Committee, PWP General Manager Sidney Jackson said. "PWP has historically adjusted the PCA infrequently, however, due to heightened market price volatility, going forward the PCA shall be calculated each month and any adjustments from the resulting values shall be automatically implemented on the first day of the following month." In other words, stand by for an increase in your electric bill every month no matter how much you try to conserve. Mr. Jackson attributed the "heightened market price volatility" to an August 2021 rupture in a gas pipeline from El Paso Texas to California.
The increased costs to generate electricity for us is not the real reason why we will be confronted with the increased costs of electricity. What many Pasadena voters don't realize is that section 1408 of the City Charter provides for a transfer of funds every year from the Power fund ofPWP to the General Fund. At the Febmary meeting of the City Council Finance Committee, Matthew Hawkesworth Director of Finance reported that the PCA monthly increase of $14 will result in a $5 million shortfall in the transfer from the Power Fund to the General Fund for next year. In response to a question from Victor Gordo, Mr. Hawkesworth said the solution will lie in further electric rate increases.
Please discuss these issues.
Very Respectfully,
William Paparian
Former Mayor of Pasadena
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