AGENDA
MUNICIPAL SERVICES COMMITTEE
REGULAR MEETING NOTICE
MARCH 11, 2025
PUBLIC MEETING 4:00 P.M.
MEMBERS
Justin Jones, Chair, District 3
Rick Cole, Councilmember, District 2
Tyron Hampton, Councilmember, District 1
Jason Lyon, Councilmember, District 7
STAFF
David Reyes, Interim General Manager
Caroline Monroy, Deputy City Attorney
Betty Gao, Recording Secretary
MISSION STATEMENT
The City of Pasadena is dedicated to delivering exemplary municipal services, responsive to our entire community and consistent
with our history, culture and unique character.
In compliance with the Americans with Disabilities Act of 1990, Assistive Listening Devices are available from the City Clerk’s Office with a 24-hour advance notice.
Please call (626) 744-4124 to request use of a listening device.
Language translation services are available for this meeting by calling (626) 744-4124 at least 24 hours in advance.
Habrá servicio de interpretación disponible para éstas juntas llamando al (626) 744-4124 por lo menos con 24 horas de anticipación .
Items on the agenda may not be called in order listed.
Agendas and supporting documents are available on the Internet at http://ww5.cityofpasadena.net/commissions/city-council-municipal-services-committee/ Materials related to an item on this Agenda submitted to the Municipal Services Committee after distribution of the agenda packet will be posted online and listed as: “Supplemental Agenda Material Received after the Posting of the agenda”.
PUBLIC COMMENT AT THE MUNICIPAL SERVICES COMMITTEE MEETING FOR MARCH 11, 2025, AT 4:00 P.M. WILL BE ACCEPTED IN-PERSON AND BY VIDEOCONFERENCE/TELECONFERENCE.
Link to City Meeting Policy:
cityofpasadena.net/CityCouncilMeetingPolicy
TO VIEW A LIVE STREAM OF THE MEETING:
http://pasadena.granicus.com/MediaPlayer.php?publish_id=9 AND
WWW.PASADENAMEDIA.ORG
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If a public comment speaker wishes to speak on more than one agenda item, please indicate which items on the online form (multiple item speakers will be handled according to the process posted on the agenda and as specified in the City meeting policy). Public comments are limited to 3 minutes each, and the Chair and Committee may limit this time if reasonable under the circumstances.
2. In-person Meeting Participation: Complete an online speaker card at the following website: www.cityofpasadena.net/commissions/public-comment/ After submitting a public speaker card, members of the public may attend the meeting in-person by coming to the Pasadena City Council Chamber, Room S249 at City Hall at the date and start-time of the posted meeting.
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Computer or electronic devices, join the meeting at: cityofpasadena.net/cczoom Telephone only dial-in: 1-669-900-6833, Meeting ID: 161 482 446
3. Speaker Card Help Line: If a public comment speaker needs assistance in completing a speaker card, please call the City Clerk’s Office at: (626) 744-4124. The help line will open 30 minutes prior to the posted start time of the meeting.
4. Members of the public may submit correspondence of any length prior to the start of the meeting, at the following email address:
[email protected]
Correspondence will be forwarded to the Committee prior to the start of the meeting, posted online, and made part of the legislative record for the item.
LIVESTREAM WITH CAPTIONING IS AVAILABLE AT WWW.PASADENAMEDIA.ORG, AND ALSO AT WWW.CITYOFPASADENA.NET/COMMISSIONS/AGENDAS,
IF YOU NEED A REASONABLE MODIFICATION OR ACCOMMODATION PURSUANT TO THE
AMERICANS WITH DISABILITIES ACT
BECAUSE YOU ARE UNABLE TO PARTICIPATE ELECTRONICALLY AS SET FORTH ABOVE, CONTACT THE CITY CLERK’S OFFICE
AS SOON AS POSSIBLE AT (626) 744-4124 OR [email protected].
CITY OF PASADENA
REGULAR MEETING OF
THE MUNICIPAL SERVICES COMMITTEE
MARCH 11, 2025
PUBLIC MEETING: 4:00 PM
PASADENA CITY HALL, COUNCIL CHAMBER
100 NORTH GARFIELD AVENUE, ROOM S249
NOTICE IS HEREBY GIVEN that the regular meeting of the Municipal Services Committee will be held on Tuesday, March 11, 2025, at 4:00 p.m., to discuss matters on the attached agenda.
Justin Jones, Chair
Municipal Services Committee
I HEREBY CERTIFY that this agenda in its entirety, was posted on the Internet at https://www.cityofpasadena.net/commissions/city-council-municipal-services-committee/ and on the Council Chamber Bulletin Board, Room S249, and the Bulletin Board in the rotunda area; City Hall, 100 North Garfield Avenue, this March 6th, 2025, by 6:30 p.m. and that copies hereof were faxed, emailed or delivered to each member of the City Council and to each local newspaper of general circulation, radio or television station requesting notice in writing, all of which recipients are identified on the distribution herein below.
Susana Castro
DISTRIBUTION:
MSC Committee Members Central Library General Manager Pasadena Weekly City Council City Clerk Director of Planning and Permitting Pasadena Star-News City Manager Director of Public Works Los Angeles Times Pasadena Now City Attorney Public Information Officer La Opinion Pasadena Journal In compliance with the Americans with Disabilities Act of 1990, listening assistive devices are available from the City Clerk's Office with a 24-hour advance notice.
Please call (626) 744-4124 to request use of a listening device. Language translation services may be requested with 24-hour advance notice.
Habra servicio de interpretacion disponible para estas juntas llamando al (626) 744-4124 por lo menos con 24 horas de anticipación.
Justin Jones, Chair
REGULAR MEETING AGENDA
MUNICIPAL SERVICES COMMITTEE
MARCH 11, 2025
Public Meeting: 4:00 P.M.
Council Chamber, Pasadena
City Hall 100 North Garfield Avenue, Room S249
APPROVAL OF MINUTES
January 28, 2025 (Canceled Meeting)
February 11, 2025 (Regular Meeting)
February 25, 2025 (Canceled Meeting)
1. PARKING CONCEPTS, INC. CONTRACT 32174 EXTENSION – PERFORMANCE UPDATE
2. OPTIMIZED STRATEGIC PLAN UPDATE
3. ELECTRIC RATE STUDY UPDATE – CUSTOMER ENGAGEMENT PLAN PUBLIC MEETING - 4:00 P.M.
ROLL CALL
PUBLIC COMMENT
INFORMATION ONLY
ADJOURN
NEW BUSINESS
1 CITY OF PASADENA
MUNICIPAL SERVICES COMMITTEE MINUTES
PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
COUNCIL CHAMBER – ROOM S249
JANUARY 28, 2025
MEETING
The regular meeting of the Municipal Services Committee, scheduled for Tuesday, January 28, 2025, at 4:00 p.m., was cancelled as ordered on January 23, 2025, and was posted.
ATTEST:
____________________
Betty Gao
Recording Secretary
__________________________
Councilmember Justin Jones, Chair
Municipal Services Committee
2 CITY OF PASADENA
MUNICIPAL SERVICES COMMITTEE MINUTES
PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
CITY HALL COUNCIL CHAMBER – S249
FEBRUARY 11, 2025
MEETING
OPENING The Chair called the meeting of t he Municipal Services Committee to order at 4:07 p.m.
ROLL CALL:
Staff:
Councilmember Justin Jones, Chair
Councilmember Tyron Hampton (Arrived at 4:21 p.m.)
Councilmember Rick Cole
Councilmember Jason Lyon
David Reyes, Acting General Manager of Water and Power
Jennifer Paige, Director of Planning and Development
Joaquin Siques, Director of Transportation
Greg de Vinck, Director of Public Works
Israel Del Toro, Deputy Director of Planning and Community Development
Stacie Takeguchi, Assistant General Manager of Water and Power Lynne Chaimowitz, Assistant General Manager of Water and Power Caroline Monroy, Deputy City Attorney
Bett
y Gao, Recording Secretary
PUBLIC COMMENT No one appeared for public comment on matters not on the agenda.
INFORMATION ONLY UPDATE- CITY RESPONSE TO WINDSTORMS AND FIRES Councilmember Hampton
arrived at 4:21 p.m.
David Reyes, Acting General Manager of Water and Power, provided introductory comments, and both Israel Del Toro, Deputy Director of Planning and Development, and Jennifer Paige, Director of Planning and Development, presented a PowerPoint presentation on the item, including providing updates on the cleanup progress on phases one and two, as well as City fire recovery efforts for properties, with all responding to questions.
Councilmember Lyon thanked staff for their ongoing efforts in securing temporary approval for displaced sc hools; and asked staff to provide additional education and guidance to residents regarding architectural styles, as well as fire-resistant materials, and related construction methods.
Councilmember Hampton encouraged staff to continue engaging and collaborating with local organizati ons and universities on ongoing architectural planning efforts, emphasized the importance of preserving the style of the upper Hastings Ranch neighborhood, and advocated for efficient rebuilding processes, accessible planning permits, and waving building permit and Pasadena Unified School District (PUSD) fees for residents. He recommended that the staff provide information to the Committee and the community on the cleanup site process. 3 Chair Jones echoed Councilmember Hampton’s comments on Hastings Ranch neighborhood, asked staff to reference the City’s recovery efforts from the 1993 Kinneloa Fire near Eaton Canyon, and to provide information on the Phase II, cleanup efforts truck routes.
Greg de Vinck, Director of Public Works, presented a PowerPoint presentation on Pasadena’s green waste cleanup and storm debris flow preparation, and responded to questions.
Councilmember Hampton thanked Mr. de Vinck and the Department of Public Works staff for their cleanup efforts while working around the clock; and requested that the Parks, Recreation and Community Department to be included in a future meeting to provide information on tree cleanup efforts at the Hahamongna Watershed park trails.
Joaquin Siques, Director of Tr ansportation, presented a brief PowerPoint on the City’s parking enforcement resumption, and responded to questions.
Councilmember Cole advocated for additional flexibility in granting on street parking permits for individuals who may have had to stay with family or friends in the City and now have additional vehicles parking on the street.
Councilmember Hampton and Chair J ones asked staff to provide and publish the U.S. Army Corps of Engineers maps for the debris removal haul routes for Pasadena and Altadena areas.
David Reyes, Acting General Manager of Water and Power, presented a PowerPoint presentation provid ing information on leak assistance program, utilities update, City ’s outreach and communications, upcoming multi-year projects, and an update on the City’s electric rate study; and responded to questions.
Chair Jones asked staff to continue enhancing communication efforts, ensuring community members and residents without Pasadena Water and Power accounts are notified of emergency and important municipal alerts and updates.
Councilmember Cole asks staff to clarify the solar panel requirements for newly built homes and to agendized for discussion solar power and batteries at a future Committee meeting, related to the rebuilding process.
Councilmember Hampton thanked and applauded Mr. Ryes and Water and Power Department’s staff for their constant communications and working around the clock during the Eaton fire and windstorm.
In response to Mr. Hampton’s inquiry related to the City’s reservoirs, Stacie Takeguchi, Assistant General Manager of Water and Power, responded that all reservoir Clean-In-Place (CIP) systems will be upgraded based on the lessons lear ned from this emergency to enhance future resilience.
4 Betty Gao, Recording Secretary, reported that one letter of correspondence was received by the City Clerk’s Office, which was distributed to the Committee, posted online, and made part of the record for this item.
The following individuals provided comments on the matter:
Ken Kules, Pasadena resident
Kathy Berlin, representing League of Women Voters
In response to public comment, Mr. Reyes stated that he would reach out to Mr. Kules to address his concerns.
Following discussion, on the order of the Chair, and by consensus of the Committee, the information was received and filed.
NEW BUSINESS AN ORDINANCE AMENDING PASADENA MUNICIPAL CODE CHAPTER 13.04 TO REMOVE STRANDED INVESTMENT CHARGE
AND RESERVES AND AMEND TO INCLUDE A WORKING CAPITAL
RESERVE TARGET
David Reyes, Acting General Manager of Water and Power, provided introductory comments, and Lynne Chaimowitz, Assistant General Manager of Water and Power, summarized the agenda report as part of the PowerPoint presentation on the item, including providing information on the City’s Road to New Electric Rates and Working Capital Target Reserve, with both responding to questions.
Councilmember Cole emphasized the importance of strategic, long- term planning and collaboration with staff to determine how to balance investments in both traditional and renewable energy systems.
Councilmember Hampton expressed his support with Councilmember Cole’s comments related to renewable energy systems and expressed continued interest in having Water and Power expand into the business of selling solar power to increase resilience.
Following discussion, the Committee asked staff to develop a minimum level for reserves to establish the point at which reserve levels would be detrimental to the operations of the utility and return to the Committee or City Council with an update.
Following further discussion, it was moved by Councilmember Cole, seconded by Councilmember Lyon, to approve the staff
recommendation with the direction to staff and detailed above, and forward the item to the Cit
y Council. (Motion unanimously approved)
APPROVAL OF MINUTES It was moved by Councilmember Lyon, seconded by Councilmember Cole, to approve the minutes of September 10, 2024, September 24, 2024 (Cancelled meeting), October 8, 2024, October 22, 2024, November 12, 2024 (Cancelled meeting), November 26, 2024 (Cancelled meeting), December 10, 2024 (Cancelled meeting), December 24, 2024 (Cancelled meeting), and January 14, 2025 (Cancelled meeting), as submitted. (Motion unanimously approved) 5 ADJOURNMENT On the order of the Chair, the meeting of the Municipal Services Committee was adjourned at 6:26 p.m.
ATTEST:
____________________
Betty Gao
Recording Secretary
__________________________
Councilmember Justin Jones, Chair
Municipal Services Committee
6 CITY OF PASADENA
MUNICIPAL SERVICES COMMITTEE MINUTES
PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
COUNCIL CHAMBER – ROOM S249
FEBRUARY 25, 2025
MEETING
The regular meeting of the Municipal Services Committee, scheduled for Tuesday, February 25, 2025, at 4:00 p.m., was cancelled as ordered on February 25, 2025, and was posted.
ATTEST:
____________________
Betty Gao
Recording Secretary
__________________________
Councilmember Justin Jones, Chair
Municipal Services Committee
7 ITEM #
8 DATE: March 11, 2025
TO: Municipal Services Committee
FROM: Joaquin T. Siques, Director of Transportation
SUBJECT: Parking Concepts, Inc. Contract 32174 Extension - Performance Update
The City operates eight parking garages located in the Civic Center and Old Pasadena areas. On November 1, 2021, City Council awarded a contract for management and operations of these garages to Parking Concepts Inc. (PCI) for a term of three years with the option of two additional years at the discretion of the City Manager. At that time, the City Council requested that Department of Transportation Staff provide a performance update on the contract prior to extending the contract beyond the initial three year contract period. This memo serves as the performance update in advance of exercising the option to extend the PCI agreement for one-year.
The contract with PCI commenced on February 1, 2022. Before this, management and operations of the garages was split between three different vendors. Placing the management and operations of all the garages under one vendor has allowed for cost savings due to elimination of redundant positions and reduced expenses by consolidating services that were previously managed with three different contracts. The consolidated service has realized an annual average cost savings of $2.4M, or 54%, annually for the last three years versus expenses under the previous contracts.
PCI has implemented the following improvements:
- Offering Rose Parade parking online, resulting in a 25% increase in parking ticket sales;
- Sharing daily supervisor shift reports of operational and customer service issues for City review to improve operations and response to reported items; - Improved parking operational control by implementing one Parking and Access and Revenue Control System (PARCS) in all the garages, improving the customer experience and revenue control;
- Enhanced aesthetics and wayfinding in the garages through painting projects and updating directional surface markings;
- Utilizing in-house labor for minor repairs and painting instead of outsourcing; - Consolidating central operations from three locations into one location, and 9 Parking Concepts, Inc. Contract 32174 Extension
0DUFK, 2025
- Renovating the parking offices to provide more efficient operations; The consolidation of services has also provided a consistent customer service experience across the garage portfolio and has provided one set of standards and services across the portfolio instead of three. The new contract has also provided one point of contact for all the city garage operations making it easier to enact changes throughout the garage system.
PCI has performed the duties of the contract as laid out and has been a valuable resource to the City, its citizens, and visitors. Therefore, staff will pursue the first extension of the existing contract per the agreement.
Prepared by: Approved by:
Jon Hamblen Joaquin T. Siques
Parking Manager Director of Transportation
Approved by
Joaquin T. S
10 Department of Transportation
PARKING CONCEPTS, INC. CONTRACT 32174
EXTENSION – PERFORMANCE UPDATE
MUNICIPAL SERVICES COMMITTEE
March 11, 2025
11 Department of Transportation
Background
• The City operates eight parking garages.
• On November 1, 2021, City Council awarded a
contract for management and operations of
these garages to Parking Concepts, Inc. (PCI),
which commenced on February 1, 2022.
> City Council requested a performance update
before extending the contract.
> Previously, the management and operations of the
garages were split between three different vendors.
2 12
Department of Transportation
Performance – Cost Savings
• This consolidated contract has
resulted in an annual cost savings
for the past three years of $2.4M,
or 54%, versus expenses under the
previous contracts.
• Key Factors Include:
3 > Elimination of redundant positions.
> Consolidation of services to one contract.
13 Department of Transportation
Performance Improvements
• PCI implemented improvements such as:
> Sharing daily shift reports for City review to improve operations and responsiveness.
> Consolidating central operations from three
locations to one.
4 14
Department of Transportation
Performance – Options
> Offering Rose Parade pre-paid parking online,
resulting in a 25% increase in ticket sales.
5 15
Department of Transportation
Performance Improvements
Marengo Garage Directional Messaging
6 16
Department of Transportation
Performance
DeLacey Accessible Spaces
7 17
Department of Transportation
Performance Improvements
> Utilizing in-house labor for minor repairs and painting rather than outsourcing.
Marengo Trash Can
8 18
Department of Transportation
Performance Improvements
Los Robles Drain Cleaning
9 19
Department of Transportation
Performance Improvements
Schoolhouse Expansion
Joint Cover Repair
10 Del Mar Expansion Joint
Cover Repair
20 Department of Transportation
Performance Improvements
Del Mar Office
11 Paseo Office
21 Department of Transportation
Performance Improvements
The DeLacey Parking
Garage was awarded
the “Best of 2024” for
parking garages by
Business Rate.
The award is based on
Google customer
reviews.
The DeLacey Garage
was noted for its
location, convenience,
ease of use and low
price.
12 22
Department of Transportation
Performance Improvements
• The consolidation of services has also
provided:
> Consistent customer service experience across the
portfolio.
> One set of standards and services.
> One point of contact for operations.
13 23
Department of Transportation
Satisfactory Performance
• PCI has performed the duties of
the contract as laid out and has
been a valuable resource to the
City, its citizens and visitors.
• Staff is pursuing the first extension
of the existing contract per the
agreement.
14 24
ITEM #
25 PASADENA WATER AND POWER
MEMORANDUM
March 11, 2025
To: Municipal Services Committee
From: David M. Reyes
Interim General Manager
Subject: Optimized Strategic Plan Update
This memorandum is for information only.
BACKGROUND:
This report is to provide an informational update to the Municipal Services Committee (“MSC”) about the status of the City of Pasadena’s (“City’s”) Optimized Strategic Plan (“OSP”). The OSP is a broad effort to establish a cohesive, actionable roadmap that lays out the key steps and future decision points to best position the City to meet the goals set forth by Resolution 9977. This effort incorporates both new and updated original analyses to develop optimized future portfolios, as well as lessons from previous planning studies conducted by Pasadena Water and Power (“PWP”). This update builds upon and informs of activities that have occurred since the most recent MSC update on September 10, 2024.
PROGRESS UPDATE:
The OSP consultant, Energy and Environmental Economics, Inc. (“E3”), has progressed through the first phase of the OSP analysis, the Preparatory Studies of the OSP. The Preparatory Studies identify and characterize the potential supply-side and demand-side resource options available to support the City’s transition to a 100% carbon-free resource portfolio. Additionally, E3 has commenced work on the second phase of the OSP analysis, the Portfolio Development of the OSP, which will study unique combinations of resources for E3 to model to meet PWP’s future needs and goals. The current activities of the OSP’s supporting studies include:
x Demand Response and Flex Loads Potential Study
x Transmission Expansion Options
x Glenarm Conversion and Replacement Study
The concurrently active workstream of the Preparatory Studies and Portfolio Development of the OSP are additionally focused on characterizing the technical potential and options for local resource development in Pasadena’s service territory. This includes emphasizing demand-side solutions, characterizing supply-side resources, and exploring transmission ces Committee
26 Optimized Strategic Plan Update
March 11, 2025
expansion options that can support local reliability needs. The Portfolio Development Phase of the OSP will use detailed power system modeling to construct multiple case studies that meet clean energy goals and maintain reliability. As part of this phase, E3 will also provide analyses of options to convert or replace the Glenarm Power Plant while maintaining an adequate supply of local resources and imports across all credible conditions including peak loads, extreme weather, and transmission contingencies.
Active community engagement and comprehensive public participation are critical components of the OSP. By the date of this meeting, E3 will have discussed the development and analysis of the multiple portfolios with various stakeholder groups, including nine Technical Advisory Panel (“TAP”) meetings, three updates to the MSC (including this meeting), two updates to the Environmental Advisory Commission (“EAC”), and one Community meeting.
NEXT STEPS:
E3 will finalize the Preparatory Studies of the OSP and will continue progress on the Portfolio Development Phase of the OSP. These Preparatory Studies will be publicly available when they are in final draft forms. The Portfolio Development Phase will move into the Long-Term Capacity Expansion optimization modeling to develop multiple case studies of new resource investments and system operations aimed at minimizing costs while meeting clean energy targets and reliability requirements. At the completion of the Portfolio Development Phase of the OSP, E3 will commence the Impact Assessment Phase of the OSP which will calculate cost metrics and will identify opportunities, dependencies, and risks of each case study.
As results become available, E3 will discuss the development and analysis of the multiple portfolios and shape the OSP document with PWP and various stakeholder groups, through bi-monthly informational updates to the MSC and the EAC, monthly advisory meetings with the TAP, and upcoming meetings with the Pasadena community. 27 Municipal Services Committee
March 11, 2025
Development of an Optimized
Strategic Plan for Pasadena Water
and Power
Nick Schlag, Partner
Mike Sontag, Director
Nathan Lee, Sr. Managing Consultant
Michaela Levine, Sr. Managing Consultant
28 2
1. General study update
• Progress update
• Optimized Strategic Plan outline
2. Planning a reliable electricity system for Pasadena
• Understanding transmission import limitations
• Identifying options for internal generation to maintain reliability
3. Next steps
Agenda
29 3
Future projects currently under
development
¬ Bonanza solar (105 MW) and
storage (55 MW)
¬ Grace solar (50 MW)
¬ Geysers geothermal (25 MW)
¬ Coso geothermal (10 MW)
¬ CalWind (20 MW)
¬ Glenarm battery storage (25
MW)
Progress to Date Towards Resolution 9977 Goals
2031 clean energy metrics based on resources currently owned or contracted to PWP (includes projects currently under development) of PWP’s annual retail sales is generated annually by the carbon- free resources in PWP’s portfolio (SB100)
Metric 1:
103%
of annual energy produced by resources owned by or contracted to PWP is from carbon-free sources
Metric 2:
94%
of PWP’s hourly energy needs are matched by carbon-free generation resources in each hour across the year
Metric 3:
88%
30 4
Phase 1
Preparatory Studies
Identify and characterize all
potential resource options
Phase 2
Portfolio Development
Use detailed power system
modeling to construct multiple
portfolios that meet clean
energy goals and maintain
reliability
Phase 3
Impact Assessment
Calculate cost metrics;
identify feasibility concerns,
dependencies, and risks of
each portfolio
Result
Optimized Strategic
Plan
Informed by technical
analysis, develop an action
plan.
Distributed Solar
and Storage
(draft complete)
New & Emerging
Tech
(draft complete)
Demand Response
+ Flex Loads
(draft complete)
Transmission
Options
(draft complete)
Glenarm
Conversion/
Replacement
(draft complete)
Long-Term
Capacity
Expansion
(in progress)
Production Cost
Modeling
Distribution
System Analysis
(in progress)
Cost Impacts
Optimized Strategic Plan: Study Workflow
Action Plan/
Final Report
Technical Analysis Synthesis
31 5
¬ Section 1: Background
• What is Resolution 9977?
• Progress to date and the challenge of the "last 5-10%" • Critical actions underway (e.g. Advanced Metering Infrastructure (AMI) deployment, distribution and sub-transmission upgrades identified by the Power Delivery Master Plan)
¬ Section 2: Technical Requirements and Building Blocks • Review of technical studies
• Top findings, challenges, and opportunities
¬ Section 3: Action Plan and Opportunities
• Near and long-term actions and justification
– Customer programs
– Procurement of local and external resources
– Long-term transmission planning
– Addition topics to be determined...
• Anticipated impacts of planned actions on carbon-free goals, reliability, and affordability DRAFT Optimized Strategic Plan Outline
32 6
In addition to public progress
updates to Council, MSC, and EAC:
¬ PWP and E3 have met with
members of the Technical
Advisory Panel on nine occasions
to provide technical updates on
study progress and will continue
to meet on a monthly basis
¬ PWP and E3 hosted the first
Community Meeting in September
and plan to host additional open
meetings through the project
duration.
Recap of Previous Updates on OSP Progress
• Project kickoff and scope of work
8/27/2024: MSC Update
• Highlights from Distributed Solar & Storage and Emerging Technologies Studies
9/10/2024: MSC & EAC Updates
• Overview of OSP study plan and case study approach
10/28/2024: City Council Update
• Highlights from Demand Response & Flexible Loads Study 11/12/2024: EAC Update
• Deep dive into PWP’s local reliability needs and options to meet needs, including local solar & storage, demand response, Glenarm conversion to hydrogen, and transmission
3/11/25: MSC Update
33 7
Key Considerations in Developing a Plan to Meet Pasadena’s Needs
Land Use Constraints Limit
Viability of Resource Options
Pasadena is a dense urban area, limiting the
opportunity to develop new generation
resources within the load pocket
Ability to Import Generation from
CAISO is Limited
PWP has a single point of interconnection to
CAISO at the TM Goodrich receiving station,
whose capacity is lower than PWP’s peak
demand
330 MW
2024 Peak
Demand
280 MW
Goodrich
Import Limit
(normal operations)
140 MW
Goodrich
Import Limit
(N-1 contingency)
Internal Generation Resources
are Crucial to Reliability
Internal generation is needed to meet
customer needs during peak periods, in
transmission contingencies, and during
CAISO emergencies
Historically, the Glenarm Power Plant has
supported this function
330 MW
Peak
Demand
Goodrich
(N-1)
Glenarm
Local
Solar and
Storage
34 8
¬ The TM Goodrich Receiving Station is PWP’s only point of connection to the California Independent System
Operator (CAISO)
¬ Under normal conditions, up to 280 MW of electricity
can be imported to Pasadena through Goodrich
• Reflects “N-1” rating: the loading on the receiving station cannot exceed the combined rating of two transformers,
allowing the system to remain in steady-state operations even in the event of a transformer failure
¬ Maintaining reliability within the city requires a system capable of meeting loads even when import limits are
reduced below “typical” levels:
• A single transformer failure or de-energized transmission line(s) (potentially for a Public Safety Power Shutoff) could create a risk of reduced or no import capability
• Outages on internal distribution lines and facilities can also result in reductions in import capability
Import Capability to Serve Pasadena Loads Through the Goodrich Receiving Station is Limited
TM Goodrich Receiving Station
Three transformers,140 MVA ratings each
CAISO
(230 kV)
Pasadena
(35 kV)
Maximum limit: 280 MW
35 9
Due to import limitations, maintaining
reliability in Pasadena’s service territory
requires internal resources that can
serve loads across a range of extreme
conditions:
1. During peak demand conditions
(when load exceeds import
capability)
2. During transmission or distribution
contingencies that reduce import
capability
Internal Resources are Needed to Ensure Reliability Due to Current Import Limitations
Full import
capability
available
Import
capability
derated
Relatively small quantities of
internal resources can help limit
reliance on Glenarm during peak
conditions when intertie is at full
capability
Relatively large quantities of
internal resources are needed
to ensure reliability during
transmission contingency
conditions
System load on a
high demand day
280 MW
~140 MW
Transmission/
Distribution
contingency
Hour of Day
36 10
¬ Using loss-of-load-probability modeling, E3 has
developed internal resource portfolios to ensure local
reliability under three paradigms:
1. Supplement: What internal resources are needed to meet growing loads with Glenarm still in service?
2. Mitigate: What additional internal resources can mitigate the need to operate Glenarm under "normal" operating conditions
3. Replace: What are the total resource needs to maintain reliability even in the event of transmission contingency without Glenarm? Note: The transmission contingency
considered in this analysis is a reduction of imports to 140 MW.
The analysis did not consider a complete loss of import capability.
¬ Additional variations of internal resource portfolios explore impacts of long duration storage, incremental
transmission expansion, and different levels of load
flexibility
Local Resources Needed to Maintain Reliability
Installed Capacity of Internal Resources, 2031
MW
Supplement
Glenarm
Mitigate
Glenarm
Replace
Glenarm
These values represent the minimum quantities of resources needed to ensure local reliability. Additional local resources will be included in portf olios to the extent that (a) the rate of naturally occurring customer adoption exceeds this level or (b) additional resources are found to be economic in Long-Term Capacity Expansion (LTCE). E3’s modeling indicates that naturally occurring adoption could result in an additional ~35 MW of customer-owned resources by 2031.
DR and
Managed EV
4hr Storage
DG PV
Glenarm
Imports
37 11
1. Replacing Glenarm requires new internal generation resources at a scale that approaches technical potential
• Size of replacement portfolio driven by (a) transmission contingency conditions and (b) periods when solar output is limited
• Demand response and emerging longer-duration storage can marginally reduce the local solar and storage need required for replacement.
• A larger transmission upgrade, potentially constructed in the 2030s, could reduce the need for local resources • Findings are consistent with broader literature and experience in the industry
2. Accelerating the development of local resources can reduce the operations of Glenarm except in extreme conditions or contingency events
• Accelerating the development of local resources provides additional benefits as well as including increased community engagement and enhanced system resiliency
3. Full hydrogen conversion of Glenarm requires significant infrastructure development, some of which is beyond PWP’s control.
• RNG may be an effective short-term substitute for natural gas while longer-term options are pursued Insights & Initial Learnings from Glenarm Replacement and Conversion Study
38 12
¬ Results of Glenarm Conversion & Replacement analysis flow into Long- Term Capacity Expansion (LTCE) modeling
¬ Additional questions answered through subsequent analysis (including through LTCE modeling):
• How do local resource portfolios contribute to the carbon-free objective of Resolution 9977?
• What additional resources beyond these local portfolios may be needed to achieve those goals?
• What are the relative costs of different approaches to pursuing the Resolution 9977 goals?
Next Steps
Phase 2
Portfolio Development
Use detailed power system
modeling to construct multiple
portfolios that meet clean
energy goals and maintain
reliability
Glenarm
Conversion/
Replacement
(draft complete)
Long-Term
Capacity
Expansion
(in progress)
39 ITEM #
40 PASADENA WATER AND POWER
MEMORANDUM
March 11, 2025
To: Municipal Services Committee
From: David M. Reyes
Interim General Manager
Subject: Electric Rate Study Update – Customer Engagement Plan This memorandum is for information only.
BACKGROUND:
This report provides an informational update to the Municipal Services Committee (“MSC”) about the status of the Pasadena Water and Power’s (“PWP”) Electric Rate Study (“ERS”), specifically the customer engagement plan. The ERS aims to evaluate and develop a recommended rate plan that aligns with City Council policies and legal constraints. The objective is to collect sufficient revenue while also supporting both community and utility goals. This goal is reached by sending price signals to customers that communicate key information and incentivize behaviors that benefit both the community and the utility. With the use of empirical data and professional expertise of industry best practice, PWP will explore rate structures and pricing incentives that will accommodate evolving electric industry trends and customer practices. The presentation will discuss planned customer engagement strategy for the study and provide a brief overview of activities since the most recent MSC update on October 22, 2024.
PROGRESS UPDATE:
The ERS, with the lead consultants from NewGen Strategies and Solutions, LLC (“NewGen”), has completed its first phase, including data gathering for the cost-of-service analysis and the development of a draft financial model. This model will serve as the primary tool for analysis and evaluating rate adjustments.
In parallel, several municipal code modifications have been approved or recommended, including the removal of direct access and related tariffs, amendments to long-term contract provisions, and restructuring reserve-related code sections into consolidated working capital policy targets and minimums. These foundational changes provide a strong starting point for aligning electric rates and tariffs with the utility’s current operations and services. ces Committee
41 Electric Rate Study Update – Customer Engagement Plan March 11, 2025
Additionally, PWP continues to integrate its ERS with the Optimized Strategic Plan (“OSP”) to refine power cost projections and revenue requirements in alignment with Resolution 9977’s goal of achieving Carbon-Free electricity by 2030. Staff has collaborated closely to refine future load growth projections and ensure key financial and operational assumptions are aligned, supporting informed decision-making through the next waypoint in 2028.
NEXT STEPS:
PWP will implement a diverse and tailored approach to public engagement, recognizing that a one-size-fits-all strategy is insufficient. Customer engagement and segmented participation are essential for developing equitable and effective rates and pricing strategies.
Actively involving customers in the rate-setting process enhances transparency, builds trust, and fosters a deeper understanding of cost structures and service value. By segmenting participation based on usage patterns and customer profiles, PWP can customize its outreach to better understand and implement incentives that promote conservation, efficiency, and sustainability. This approach not only supports policy goals, such as reducing peak demand and encouraging renewable energy adoption, but also ensures that costs are fairly distributed among customer classes, preventing undue burdens on any one group.
A key aspect of fostering engagement is increasing awareness of both the rate-setting process and the value that a publicly owned utility brings to the community’s quality of life.
PWP will achieve this through digital advertising, content marketing, events, and webinars, ensuring that customers are well-informed and involved.
Recognizing the importance of customer insights, PWP will conduct targeted market research to listen and learn about customer expectations and priorities before making recommendations to the City Council. A variety of engagement strategies will be employed, ranging from digital outreach and online input tools to in-depth workshops and focus groups, ensuring broad and meaningful participation.
PWP’s engagement strategy is designed to empower customers with information while aligning pricing structures with community priorities and regulatory requirements. Sending clear pricing signals that encourage mutually beneficial behaviors is essential for Pasadena to achieve the policy objectives outlined in Resolution 9977—ensuring a carbon-free electricity future that is reliable, equitable, and affordable. 42 Pasadena Water and Power
Customer Engagement Plan for
Electric Rate Study
Municipal Services Committee
March 11, 2025
Item #3
43 Pasadena Water and Power
1 2
3 4
5 6
CLEAN UP
Modified legacy
items such as direct
access, long-term
contracts and billing
provisions that were
created during a past
era of deregulation
that are incongruent
with today’s business
model and regulatory
framework
POLICY
Establish clear policies to
serve as a foundation to
set the bounds for future
financial planning;
restructured reserve-
related code sections
into consolidated
working capital policy
targets and minimums
TOOLS
Build out the financial
models and tools
with the established
policy and
parameters to
forecast future
revenue needs based
on cost-of-service
analysis and
economic projections
DESIGN
Establish a future
desired state and
design a balanced rate
structure to meet
PWP’s mission, based
on realistic forecasts
and established plans
(i.e. budgets, PDMP,
IRP, OSP)
SCENARIOS
Review multiple
options based on
Council and
community inputs,
feasible program
implementations and
future possible
stressors, and
establish a preferred
scenario to develop
rates and customer
impacts
OUTCOME
Establish rate pricing
and look at the
customer impacts
regarding the new
rate design and
pricing, and
determine the timing
of new rates and
communicate
through the
customer base
ROAD TO NEW ELECTRIC RATES
44 Pasadena Water and Power
3 NOT A ONE SIZE FITS ALL PROPOSAL
PUBLIC ENGAGEMENT TRENDS
Identify a fully representative customer base and meet them where they are.
STRATEGY
Employ diverse approaches that demonstrate transparency, foster meaningful conversations with customers, and gain insights into the perspectives of the different demographic groups and viewpoints.
45 Pasadena Water and Power
4 PUBLIC PARTICIPATION OBJECTIVES
INCREASE AWARENESS
1. EMPOWERING CUSTOMERS
2. IMPROVING POLICY EFFECTIVENESS
3. DEMONSTRATE TRANSPARENCY
4. 46
Pasadena Water and Power
5 PUBLIC PARTICIPATION STRATEGIES
DIGITAL ADVERTISING
CONTENT MARKETING
ONLINE INPUT
PUBLIC WORKSHOPS
PARTNERSHIPS
EVENTS AND WEBINARS
https://pwp.cityofpasadena.net/electric-rate-study-2024/
DIGITAL AND IN-PERSON
47 Pasadena Water and Power
6 ENGAGEMENT PHASES
ENGAGEMENT PHASES
Introduction
Listen
Broadcast
Rate Design
Phase
Implementation
Phase
48 Pasadena Water and Power
7 LET THE FUN BEGIN!
EDUCATION
MATERIALS DEVELOPMENT
LISTENING
Shaping PWP’s Energy Future:
How Safe, Reliable and Affordable Power
Services are Provided to You
MARCH 26*
Shaping PWP’s Energy Future:
Clean Energy and Rates Forum
APRIL 24*
*Date subject to change, information will be distributed widely 49