AGENDA
MUNICIPAL SERVICES COMMITTEE
REGULAR MEETING NOTICE
APRIL 8, 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.
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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 APRIL 8, 2025, AT 4:00 P.M. WILL BE ACCEPTED IN-PERSON AND BY VIDEOCONFERENCE/TELECONFERENCE.
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WWW.PASADENAMEDIA.ORG
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IF YOU NEED A REASONABLE MODIFICATION OR ACCOMMODATION PURSUANT TO THE
AMERICANS WITH DISABILITIES ACT
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AS SOON AS POSSIBLE AT (626) 744-4124 OR [email protected].
CITY OF PASADENA
REGULAR MEETING OF
THE MUNICIPAL SERVICES COMMITTEE
APRIL 8, 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, April 8, 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 April 3rd, 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.
REGULAR MEETING AGENDA
MUNICIPAL SERVICES COMMITTEE
APRIL 8, 2025
Public Meeting: 4:00 P.M.
Council Chamber, Pasadena
City Hall 100 North Garfield Avenue, Room S249
APPROVAL OF MINUTES
1. R
EVIEW OF ENERGY REQUIREMENTS FOR SINGLE FAMILY RESIDENTIAL NEW
CONSTRUCTION
2. O
PTIMIZED STRATEGIC PLAN UPDATE*
3. S
OLAR SYSTEM INSTALLATIONS & PERMITTING PROCESS*
PUBLIC MEETING - 4:00 P.M.
ROLL CALL
PUBLIC COMMENT
INFORMATION ONLY
ADJOURN
NEW BUSINESS
*Attachments
1 ITEM #2
2 PASADENA WATER AND POWER
MEMORANDUM
April 8, 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 March 11, 2025.
PROGRESS UPDATE:
The OSP consultant, Energy and Environmental Economics, Inc. (“E3”), has continued progress on the second phase of the OSP analysis, the Portfolio Development Phase of the OSP. The Portfolio Development Phase of the OSP uses detailed power system modeling to construct multiple case studies that meet clean energy goals and maintain reliability. As part of this phase, E3 has commenced 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. Additionally, E3 is focused on characterizing the technical potential and options for accelerated local resource development in Pasadena’s service territory exploring variations to provide the City Council robust analysis to inform the OSP. The current activities of the OSP’s supporting studies include:
• Long-term Capacity Expansion
• Distribution System Analysis
3 Optimized Strategic Plan Update
April 8, 2025
As E3 progresses through the Portfolio Development Phase of the OSP, they have concurrently initiated the Impact Assessment Phase of the OSP which will calculate cost metrics and will identify opportunities, dependencies, and risks of each case study. The first OSP supporting study of the Impact Assessment Phase is the Distribution System Analysis. This study is a geospatial analysis of future substation loads to identify locations for accelerated distributed energy resources and demand-side measures.
Active community engagement and comprehensive public participation are critical components of the OSP. As the results of these supporting studies become available, including the shape of the OSP document, E3 will share the progress and collect feedback from various stakeholder groups. By the date of this meeting, E3 will have discussed the development and analysis of the multiple portfolios, including: ten Technical Advisory Panel (“TAP”) meetings, four updates to the MSC (including this meeting), three updates to the Environmental Advisory Commission (“EAC”), and one Community meeting.
NEXT STEPS:
E3 will finalize the Portfolio Development Phase of the OSP and will continue progress on the Impact Assessment Phase of the OSP including assessing cost impacts. During these concurrently active workstreams, E3 will actively collect and incorporate feedback from MSC and TAP on the Portfolio Development Phase. In addition to continuing progress on the OSP supporting studies, E3 is preparing reports on the findings of the Preparatory Studies which will be publicly available when they are in final draft formats.
Attachments: PowerPoint Presentation by E3
4 Update to Municipal Services Committee
April 8, 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
5 2
Review current portfolio
Resource options to close the gap
Results from case studies to meet Resolution 9977 Goals • Capacity additions
• Energy mix
• Hourly system dynamics
• Costs
• Other considerations
Agenda – April 8, 2025, Update to MSC
Purpose of Today’s Update: Share preliminary results from OSP Case Study analysis and solicit MSC questions, feedback, and guidance on next steps
6 3
The Optimized Strategic Plan is…
…a roadmap that lays out the key steps and future decision points that will best position PWP to achieve its goal to source all electricity from carbon-free sources by the end of 2030 while maintaining reliability and limiting cost impacts to customers
The Optimized Strategic Plan will…
…consider how new generation resources, investments in transmission and distribution infrastructure, and customer programs can facilitate transition to Pasadena’s carbon-free goal
Defining “Optimized Strategic Plan”
7 4
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) Metric 1:
86%
of PWP’s annual retail sales is generated annually by the carbon- free resources in PWP’s portfolio (SB100)
Metric 2:
78%
of annual energy produced by resources owned by or contracted to PWP is from carbon-free sources
Metric 3:
83%
of PWP’s hourly energy needs are matched by carbon-free generation resources in each hour across the year
As published on the PWP Clean Energy Tracker (does not include resources designated as “in progress”) 8 5
Balance of Carbon-Free Energy Resources based on Currently Executed Contracts
Hourly Carbon-Free Electricity vs. Hourly Load
0% 25% 50% 75% 100% 125% 150% 175% 200%
2031 Carbon-Free Electricity Supply (Executed Contracts Only) Additions: Coso Geothermal (10 MW), Geysers Geothermal (25 MW), Bonanza Solar/BESS (105 MW/55MW), Glenarm BESS (25 MW), Calwind (20 MW), Grace Solar (50 MW) (Does not include in-progress resources) 2025 Carbon-Free Electricity Supply
Jan 1 Day of Year Dec 31
12am
12pm
12am
12am
12pm
12am
Jan 1 Day of Year Dec 31
Annual average (“Metric 3”): 25%
Annual average (“Metric 3”): 81%
9 6
Local External
Solar
Wind
Geothermal
Battery Storage (4-hr)
Demand Response
Managed EV Charging
Mid Duration Storage (10-hr)
Long Duration Storage (100-hr)
H2-Fired Gas Turbine
H2 Fuel Cell
Resource Options Available to Meet Resolution 9977 Goals Multiple options for carbon-free generation and storage resources exist to increase Metric 3 and each have their own considerations or limitations.
10 7
0 0
100
0 100 00 00
0 0
100
0 100 00 00
Three key observations:
1. Closing the gap between PWP’s
current portfolio and a 100% hourly
matching goal likely requires
additions of renewables and storage
at a scale of hundreds of megawatts
2. Additions of local resources and
external resources each advance
PWP towards the Resolution 9977,
and there is no minimum threshold
of need for a specific type of
resource
3. All resources exhibit diminishing
marginal returns in their impact on
Metric 3, displaying asymptotic
behavior as the portfolio
approaches 100% - foreshadowing
the value of resource diversity
Closing the Gap: How Scaling Individual Resources Impacts Clean Energy Metrics
Existing resources & executed contracts
Impact of Additional Local Resources
Hourly Matching Percentage (Metric 3)
Local solar
(paired with
storage 1:1)
Local solar
(paired with
storage 2:1)
Local solar
(no storage)
Utility-scale solar
(paired with storage 1:1)
Wind
Geothermal
Impact of Additional External Resources
Incremental Capacity Additions to Base Portfolio (MW)
11 8
Additional variations explored to provide
PWP and City Council with
robust analyses to inform the Optimized
Strategic Plan:
“Accelerated Local Resources”: What
are the comparative impacts of
portfolios that accelerate the
deployment of local solar & storage
while maintaining Glenarm Power Plant
as a backup for reliability?
Timing: How does each strategy change
if transition to carbon-free occurs less
rapidly?
• Opportunity to synchronize transition with
transmission expansion
• More plausible timelines for technology
readiness for emerging technologies
Markets: How does short-term market
transaction flexibility impact these
case studies, if PWP's owned and
contracted generation is carbon-free?
Three Core Case Studies to Achieve Resolution 9977 Goals Common methods & assumptions across all three case studies:
• Natural gas combustion at Glenarm ceases by end of 2030 (either converted to H2 or replaced) • No reliance on wholesale market purchases (“ 4x carbon free electricity”) • Quantities of each resource optimized in each case study to meet reliability needs and carbon -free objectives Case Studies New Resource Options to Meet 2030 Goals
Mature
Technologies Only
Solar PV
(Distributed
& Utility)
Land-
Based
Wind
Geother-
mal
Load
Flexibility
Battery
Storage
Mature
Technologies +
Green Hydrogen
Solar PV
(Distributed
& Utility)
Land-
Based
Wind
Geother-
mal
Load
Flexibility
Battery
Storage
Green
Hydrogen
(H2) Conversion
at Glenarm
Mature
Technologies +
Long-Duration
Storage
Solar PV
(Distributed
& Utility)
Land-
Based
Wind
Geother-
mal
Load
Flexibility
Battery
Storage
Long-Duration
Energy Storage
12 9
Mathematical optimization problem:
Minimize NPV Investment Costs + Operating Costs
Subject to constraints:
Minimum requirements for local resources
Resource adequacy requirements
Carbon-free energy targets
Plant-specific operational limitations
• Thermal: maximum power, ramp rate
• Storage: maximum power, state of charge
• Renewables: hourly availability
Hourly power balance
Using Long Term Capacity Expansion to Develop Portfolios 2025 2031 2050
Investment decisions:
New investments selected in each year across 25-year horizon Jan Feb Mar Apr May Ju n Ju l Aug Sep Oct Nov Dec
Operational decisions:
Hourly operations simulated across 48 representative days for each year arbon free
generation
ourly
demand
13 10
System Representation in Capacity Expansion Model
280 MW limit
(expanding to 336
MW by 2035)
TM Goodrich
Receiving Station
External
CAISO
System
Owned & Contracted Resources
Palo Verde Nuclear 10 MW
Intermountain Power Plant1 108 MW
Magnolia Power Plant 14 MW
Chiquita Canyon Landfill Gas1 7 MW
Puente Hills Landfill Gas1 13 MW
Hoover Hydro 15 MW
Azusa Hydro 15 MW
Calwind2 20 MW
Coso Geothermal2 10 MW
Geysers Geothermal2 25 MW
Antelope Big Sky Ranch Solar 7 MW
Big Sky Summer Solar 7 MW
Columbia 2 Solar 3 MW
Kingbird Solar 20 MW
Bo nanza Solar2 105 MW
Grace Solar2 50 MW
Bo nanza BESS2 55 MW
Candidate Resource Options
Utility-Scale Solar PV
Wind (California)
Wind (Out of State)
Geothermal
Ba ttery Storage (4hr)
Mid Duration Storage (10hr)3
Long Duration Storage (100hr)3
Wholesale Energy Market
CAISO Wholesale Market (SP15)
Utility Load
2030 Peak Demand 5 361 MW
Owned & Contracted Resources
Glenarm Power Plant 198 MW
Winds or Res ervoir Solar 0.7 MW
Glenarm BESS 2 25 MW
Existing Customer -Owned Resources
Cu stom er-Owned Solar 28 MW
Cu stom er Owned Storag e 1 MW
Cand idate Res ource Opti on s
Local Solar PV
Battery Storage (4hr)
Mid Duration Storage (10hr) 3
Long Duration Storage (100hr 3
Demand Response
Load Flexibility
Green Hydrogen 3
Local
PWP
System
Notes:
1. Resources with established plans for retirement or contract expirations prior to end of 2030
2. Resources not yet online today
3. Candidate resources included in a select set of portfolios
4. Based on 2023 IRP forecast.
5. Based on 2023 IRP forecast with blended EV charging developed by E3. 14 11
Local
Local Local Local
Local Local
Local Local
External
External
External External
ExternalLocal
Local
Local Local
Local Local
External
External
External
ExternalLocal
Local
0 200
400
600
800
1000
1200
1400
1600
1800
Existing Portfolio Solar + Storage
Glenarm
Replacement
LDES Glenarm
Replacement
Glenarm Hydrogen
Conversion
Accelerated Local
Resources (Glenarm
Backup)
Accelerated Local
Resources Plus
(Glenarm Backup)
Annual Matching
Accelerated Local
Resources
Annual Matching
Accelerated Local
Resources Plus
Installed Capacity (MW)
Managed EV
DR
Storage (100hr)
Storage (10hr)
Storage (4hr)
Solar
Wind
Geothermal
Hydrogen
Natural Gas
Resources
removed
2031 Installed Capacity Across Case Studies
Current 2031
Resource
Portfolio*
Metric 1 86%
Metric 2 78%
Metric 3 83%
Portfolios Designed to Meet 100% of Hourly
Needs
(Glenarm Replaced/Converted)
167% 183% 127%
100% 100% 100%
100% 100% 100%
Portfolios Designed to Meet
100% of Hourly Needs
(Glenarm as Backup)
170% 171%
100% 100%
100% 100%
Portfolios Designed to Meet
100% of Annual Needs
(Glenarm Reduced Operations)
108% 108%
96% 96%
94% 95%
Note: Metric calculations are based on a single deterministic year of normal weather conditions and do not capture events where transmission or distribution contingencies would require Glenarm to operate to ensure local reliability. Actual outcomes may vary due to impacts of natura l year-to-year weather variability, transmission and distribution contingencies, and dispatch instructions provided by CAISO. *Metrics reported on the PWP clean energy tracker for Owned/Contracted resources 15 12
Local
Local Local Local
Local Local
Local Local
External
External
External External
ExternalLocal
Local
Local Local
Local Local
External
External
External
ExternalLocal
Local
0 200
400
600
800
1000
1200
1400
1600
1800
Existing Portfolio Solar + Storage
Glenarm
Replacement
LDES Glenarm
Replacement
Glenarm Hydrogen
Conversion
Accelerated Local
Resources (Glenarm
Backup)
Accelerated Local
Resources Plus
(Glenarm Backup)
Annual Matching
Accelerated Local
Resources
Annual Matching
Accelerated Local
Resources Plus
Installed Capacity (MW)
Managed EV
DR
Storage (100hr)
Storage (10hr)
Storage (4hr)
Solar
Wind
Geothermal
Hydrogen
Natural Gas
Resources
added
Resources
removed
2031 Installed Capacity Across Case Studies
Current 2031
Resource
Portfolio*
Metric 1 86%
Metric 2 78%
Metric 3 83%
Portfolios Designed to Meet 100% of Hourly
Needs
(Glenarm Replaced/Converted, No Market Purchases)
167%
100%
100%
Note: Metric calculations are based on a single deterministic year of normal weather conditions and do not capture events where transmission or distribution contingencies would require Glenarm to operate to ensure local reliability. Actual outcomes may vary due to impacts of natura l year-to-year weather variability, transmission and distribution contingencies, and dispatch instructions provided by CAISO.
Without Glenarm, large
quantities of new local solar
and storage resources are
needed to ensure local
reliability during transmission
contingency conditions
*Metrics reported on the PWP clean energy tracker for Owned/Contracted resources 16 13
Local
Local Local Local
Local Local
Local Local
External
External
External External
ExternalLocal
Local
Local Local
Local Local
External
External
External
ExternalLocal
Local
0 200
400
600
800
1000
1200
1400
1600
1800
Existing Portfolio Solar + Storage
Glenarm
Replacement
LDES Glenarm
Replacement
Glenarm Hydrogen
Conversion
Accelerated Local
Resources (Glenarm
Backup)
Accelerated Local
Resources Plus
(Glenarm Backup)
Annual Matching
Accelerated Local
Resources
Annual Matching
Accelerated Local
Resources Plus
Installed Capacity (MW)
Managed EV
DR
Storage (100hr)
Storage (10hr)
Storage (4hr)
Solar
Wind
Geothermal
Hydrogen
Natural Gas
Resources
added
Resources
removed
2031 Installed Capacity Across Case Studies
Current 2031
Resource
Portfolio*
Metric 1 86%
Metric 2 78%
Metric 3 83%
Portfolios Designed to Meet 100% of Hourly
Needs
(Glenarm Replaced/Converted, No Market Purchases)
167% 183%
100% 100%
100% 100%
Portfolios Designed to Meet
100% of Hourly Needs
(Glenarm as Backup)
170% 171%
100% 100%
100% 100%
Portfolios Designed to Meet
100% of Annual Needs
(Glenarm Reduced Operations)
108% 108%
96% 96%
94% 95%
Note: Metric calculations are based on a single deterministic year of normal weather conditions and do not capture events where transmission or distribution contingencies would require Glenarm to operate to ensure local reliability. Actual outcomes may vary due to impacts of natura l year-to-year weather variability, transmission and distribution contingencies, and dispatch instructions provided by CAISO.
Availability of emerging long-
duration storage technologies
would reduce need for local
resources, but scale of new
additions required within PWP
service area remains large
*Metrics reported on the PWP clean energy tracker for Owned/Contracted resources 17 14
Local
Local Local Local
Local Local
Local Local
External
External
External External
ExternalLocal
Local
Local Local
Local Local
External
External
External
ExternalLocal
Local
0 200
400
600
800
1000
1200
1400
1600
1800
Existing Portfolio Solar + Storage
Glenarm
Replacement
LDES Glenarm
Replacement
Glenarm Hydrogen
Conversion
Accelerated Local
Resources (Glenarm
Backup)
Accelerated Local
Resources Plus
(Glenarm Backup)
Annual Matching
Accelerated Local
Resources
Annual Matching
Accelerated Local
Resources Plus
Installed Capacity (MW)
Managed EV
DR
Storage (100hr)
Storage (10hr)
Storage (4hr)
Solar
Wind
Geothermal
Hydrogen
Natural Gas
Resources
added
Resources
removed
2031 Installed Capacity Across Case Studies
Current 2031
Resource
Portfolio*
Metric 1 86%
Metric 2 78%
Metric 3 83%
Portfolios Designed to Meet 100% of Hourly
Needs
(Glenarm Replaced/Converted, No Market Purchases)
167% 183% 127%
100% 100% 100%
100% 100% 100%
Portfolios Designed to Meet
100% of Hourly Needs
(Glenarm as Backup)
170% 171%
100% 100%
100% 100%
Portfolios Designed to Meet
100% of Annual Needs
(Glenarm Reduced Operations)
108% 108%
96% 96%
94% 95%
Note: Metric calculations are based on a single deterministic year of normal weather conditions and do not capture events where transmission or distribution contingencies would require Glenarm to operate to ensure local reliability. Actual outcomes may vary due to impacts of natura l year-to-year weather variability, transmission and distribution contingencies, and dispatch instructions provided by CAISO.
Conversion of Glenarm to green
hydrogen results in limited need
for additional resources, serving
as a “clean firm” resource that
can be dispatched when
needed to fill gaps in the
portfolio, contribute to resource
adequacy needs, and support
local reliability
*Metrics reported on the PWP clean energy tracker for Owned/Contracted resources 18 15
Local
Local Local Local
Local Local
Local Local
External
External
External External
ExternalLocal
Local
Local Local
Local Local
External
External
External
ExternalLocal
Local
0 200
400
600
800
1000
1200
1400
1600
1800
Existing Portfolio Solar + Storage
Glenarm
Replacement
LDES Glenarm
Replacement
Glenarm Hydrogen
Conversion
Accelerated Local
Resources (Glenarm
Backup)
Accelerated Local
Resources Plus
(Glenarm Backup)
Annual Matching
Accelerated Local
Resources
Annual Matching
Accelerated Local
Resources Plus
Installed Capacity (MW)
Managed EV
DR
Storage (100hr)
Storage (10hr)
Storage (4hr)
Solar
Wind
Geothermal
Hydrogen
Natural Gas
Resources
added
Resources
removed
2031 Installed Capacity Across Case Studies
Current 2031
Resource
Portfolio*
Metric 1 86%
Metric 2 78%
Metric 3 83%
Portfolios Designed to Meet 100% of Hourly
Needs
(Glenarm Replaced/Converted, No Market Purchases)
167% 183% 127%
100% 100% 100%
100% 100% 100%
Portfolios Designed to Meet 100%
of Hourly Needs
(Glenarm Backup, No Market Purchases)
170% 171%
100% 100%
100% 100%
Portfolios Designed to Meet
100% of Annual Needs
(Glenarm Reduced Operations)
108% 108%
96% 96%
94% 95%
Note: Metric calculations are based on a single deterministic year of normal weather conditions and do not capture events where transmission or distribution contingencies would require Glenarm to operate to ensure local reliability. Actual outcomes may vary due to impacts of natura l year-to-year weather variability, transmission and distribution contingencies, and dispatch instructions provided by CAISO.
With Glenarm preserved
as a backup resource for
reliability, multiple diverse
portfolios combining local
and external carbon-free
resources are able to
supply 100% of energy
needs on an hourly basis
(Two variations in
portfolios correspond to
different levels of local
resource development)
*Metrics reported on the PWP clean energy tracker for Owned/Contracted resources 19 16
Local
Local Local Local
Local Local
Local Local
External
External
External External
ExternalLocal
Local
Local Local
Local Local
External
External
External
ExternalLocal
Local
0 200
400
600
800
1000
1200
1400
1600
1800
Existing Portfolio Solar + Storage
Glenarm
Replacement
LDES Glenarm
Replacement
Glenarm Hydrogen
Conversion
Accelerated Local
Resources (Glenarm
Backup)
Accelerated Local
Resources Plus
(Glenarm Backup)
Annual Matching
Accelerated Local
Resources
Annual Matching
Accelerated Local
Resources Plus
Installed Capacity (MW)
Managed EV
DR
Storage (100hr)
Storage (10hr)
Storage (4hr)
Solar
Wind
Geothermal
Hydrogen
Natural Gas
2031 Installed Capacity Across Case Studies
Current 2031
Resource
Portfolio*
Metric 1 86%
Metric 2 78%
Metric 3 83%
Portfolios Designed to Meet 100% of Hourly
Needs
(Glenarm Replaced/Converted, No Market Purchases)
167% 183% 127%
100% 100% 100%
100% 100% 100%
Portfolios Designed to Meet 100%
of Annual Needs
(Limited Glenarm Ops & Market Purchases)
108% 108%
96% 96%
94% 95%
Note: Metric calculations are based on a single deterministic year of normal weather conditions and do not capture events where transmission or distribution contingencies would require Glenarm to operate to ensure local reliability. Actual outcomes may vary due to impacts of natura l year-to-year weather variability, transmission and distribution contingencies, and dispatch instructions provided by CAISO.
Resources
added
Resources
removed
*Metrics reported on the PWP clean energy tracker for Owned/Contracted resources Portfolios Designed to Meet 100%
of Hourly Needs
(Glenarm Backup, No Market Purchases)
170% 171%
100% 100%
100% 100%
Portfolios sized to meet
annual energy needs with
carbon-free resources
require fewer new
resource additions
20 17
Local
Local
Local
Local
Local Local
Local LocalExternal
External
External
External
External External
External External
Annual Load
0 500
1000
1500
2000
2500
3000
Existing Portfolio Solar + Storage
Glenarm
Replacement
LDES Glenarm
Replacement
Glenarm Hydrogen
Conversion
Accelerated Local
Resources (Glenarm
Backup)
Accelerated Local
Resources Plus
(Glenarm Backup)
Annual Matching
Accelerated Local
Resources
Annual Matching
Accelerated Local
Resources Plus
Annual Generation (GWh)
Curtailment
Solar
Wind
Geothermal
Hydrogen
Natural Gas
Hydro
Nuclear
2031 Annual Generation Mix Across Case Studies
Current 2031
Resource
Portfolio*
Metric 1 86%
Metric 2 78%
Metric 3 83%
Portfolios Designed to Meet 100% of Hourly
Needs
(Glenarm Replaced/Converted, No Market Purchases)
167% 183% 127%
100% 100% 100%
100% 100% 100%
Note: Metric calculations are based on a single deterministic year of normal weather conditions and do not capture events where transmission or distribution contingencies would require Glenarm to operate to ensure local reliability. Actual outcomes may vary due to impacts of natura l year-to-year weather variability, transmission and distribution contingencies, and dispatch instructions provided by CAISO.
Generation
above load
either sold or
curtailed
*Metrics currently reported on the PWP clean energy tracker for Owned/Contracted resources Portfolios Designed to Meet 100%
of Hourly Needs
(Glenarm Backup, No Market Purchases)
170% 171%
100% 100%
100% 100%
Portfolios Designed to Meet 100%
of Annual Needs
(Limited Glenarm Ops & Market Purchases)
108% 108%
96% 96%
94% 95%
21 18
2031 Balance of Carbon -Free Energy Resources
Hourly Carbon-Free Electricity vs. Hourly Load
0% 25% 50% 75% 100% 125% 150% 175% 200%
Glenarm Replacement Solar + Storage Only
12am
12pm
12am
Jan 1 Day of Year Dec 31
Annual average (“Metric 3”): 99.95%
12am
12pm
12am
Jan 1 Day of Year Dec 31
Annual average (“Metric 3”): 99.92%
Accelerated Local Resources + Glenarm Backup
Large surplus of carbon-free energy throughout
much of the year (particularly daylight hours)…
…to ensure that sufficient carbon-free resources
are available during the most constrained hours of
the year
22 19
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
500%
Hourly Carbon-Free Resource Availability (% of
Hourly Load)
Hours in Year (Ranked Highest to Lowest)
Supply load with 100% carbon-free
generation during the most constrained
conditions across the year requires a
portfolio of resources that produces a
large surplus of carbon-free energy
outside of those constrained periods
Surplus carbon-free generation must be
either curtailed or sold to the market,
which would make PWP heavily
dependent upon off-system sales
Many hours in which PWP would have a
surplus of generation could occur when
prices in the market are low or negative
(e.g. daytime hours in spring)
2031 Duration Curves of Carbon-Free Energy Resources
Carbon-free
generation deficit
Oversupply of
carbon-free
generation
Metric 1
Glenarm Replacement Solar +
Storage Only 167%
Accelerated Local Resource +
Glenarm Backup 170%
Annual Matching, Accelerated
Local Resources 108%
23 20
To compare costs to meet Resolution 9977 goals
across case studies on a consistent basis, total
system cost includes:
• All-in costs of all new resources (represented as a PPA- style annualized cost)
– Costs for naturally occurring adoption of residential and commercial customer solar are not included
• Changes to fuel and operations & maintenance costs for existing resources resulting from plant retirements and/or dispatch
• Changes in the CAISO Transmission Access Charge (TAC) due to differences in internal generation
• Changes in wholesale market cost and/or revenues due
to differences in purchases and sales in CAISO wholesale market
Incremental total system costs compared to a least -
cost reference case 2031, designed to meet 100% of
annual energy needs with carbon -free resources
Measuring Incremental Total System Costs
Location New Resource Type
2031 PPA-
Style Cost
($/MWh)
Local Residential Solar $160
$140-180
Non-Residential Solar $110
$100-122
External Utility-Scale Solar $40
$30-50
In-State Wind $60
$50-80
Out-of-State Wind
(includes transmission)
$65
$60-75
Geothermal $120
$100-140
PP A-style costs are expressed in nominal terms and are calculated to recover capital investment, assumed return, and operating costs over a 20-year period.
Ranges shown reflect financing & technology uncertainty. 24 21
+$80
+$95
+$20
+$45 +$45
+$5 +$10
+$140 +$155
+$55
+$85 +$85
+$15
+$25
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
Solar + Storage Glenarm
Replacement
LDES Glenarm
Replacement
Glenarm Hydrogen
Conversion
Accelerated Local
Resources (Glenarm
Backup)
Accelerated Local
Resources Plus
(Glenarm Backup)
Annual Matching
Accelerated Local
Resources
Annual Matching
Accelerated Local
Resources Plus
2031 Cost Comparison Across Case Studies
2031 Relative Incremental Total System Cost
($ million per year)
Metric 1
Metric 2
Metric 3
Portfolios Designed to Meet 100% of Hourly Needs
(Glenarm Replaced/Converted, No Market Purchases)
167% 183% 127%
100% 100% 100%
100% 100% 100%
Portfolios Designed to Meet 100% of
Hourly Needs
(Glenarm Backup, No Market Purchases)
170% 171%
100% 100%
100% 100%
Portfolios Designed to Meet 100% of
Annual Needs
(Limited Glenarm Ops & Market Purchases)
108% 108%
96% 96%
94% 95%
Note: Incremental cost measured relative to a “least-cost” portfolio designed to meet 100 of Pasadena’s annual energy needs with carbon-free resources Note: PWP’s current power fund
operating expenses are ~$250
million/year
25 22
Portfolios Designed to Meet 100% of Hourly Needs
(Glenarm Replaced/Converted, No Market Purchases)
Portfolios Designed to Meet 100% of
Hourly Needs
(Glenarm Backup, No Market Purchases)
Portfolios Designed to Meet 100% of
Annual Needs
(Limited Glenarm Ops & Market Purchases)
Solar-Storage
Replacement
LDES
Replacement
Hydrogen
Conversion
Accel Local
Resources
Accel Local
Resources Plus
Accel Local
Resources
Accel Local
Resources Plus
New Resource Needs by 2031
New Renewables (MW) 600 568 165 363 417 123 151
New Storage (MW) 339 215 - 173 214 76 100
New DR & Load Flex (MW) 35 37 35 35 36 35 35
Clean Energy Metrics by 2031
Metric 1 (%) 167% 183% 127% 170% 171% 108% 108%
Metric 2 (%) 100% 100% 100% 100% 100% 96% 96%
Metric 3 (%) 100% 100% 100% 100% 100% 94% 95%
Relative Costs in 2031
Incremental Cost ($M/yr) +$80-140 +$95-155 +$20-55 +$45-85 +$45-85 +$5-15 +$10-25 Other Considerations
Local Resource Siting
Technology Readiness
Upstream H2 Infrastructure
Wholesale Market Exposure
Resource Adequacy Risk
Local Resilience
Long-Term Optionality
Summary Results for 2031 Case Studies
Note: Metric calculations are based on a single deterministic year of normal weather conditions and do not capture events where transmission or distribution contingencies would require Glenarm to operate to ensure local reliability. Actual outcomes may vary due to impacts of natura l year-to-year weather variability, transmission and distribution contingencies, and dispatch instructions provided by CAISO.
Higher risk Lower risk
26 ITEM #3
27 P ASAD EN A W AT ER A N D PO W ER
MEMORANDUM
April 8, 2025
To: Municipal Services Committee
From: David Reyes
Interim General Manager
Subject: Solar System Installations & Permitting Process
This memorandum is for information only.
BACKGROUND:
The attached presentation provides the Municipal Services Committee with detailed information on current solar system installations and the associated permitting process. It includes general insight into residential solar systems, their impact on the power grid, rate structure, and the steps residents must follow to obtain the necessary permits for safe solar system installation and operation in Pasadena. Additionally, t he presentation highlights recent improvements made by the Pasadena Water and Power, the Planning, and the Fire Departments.
Attachment: PowerPoint presentation
cc: Jennifer Paige, Director of Planning & Community Development Chad Augustin, Fire Chief
28 City of Pasadena
City of Pasadena
Solar System Installations
& Permitting Process
Pasadena Water and Power
&
Planning & Community Development
April 8, 2025
29 City of Pasadena
Key Topics
• Overview of Solar System I nstallations in Pasadena
• Solar Systems and Pasadena’s Electric Grid
• Current Solar Incentives (Net Energy Metering)
• Solar Program Case Studies
• Solar Permitting Process Overview and Improvements
2 30
City of Pasadena
Typical Residential Solar System with
Energy Storage
3 31
City of Pasadena
4 Solar System Installations in Pasadena
32 City of Pasadena
5 126 477 1,134 1,471
4,300 4,766 5,488
7,217
8,787
9,966
11,280
12,477
15,070
19,177
23,800
26,154
29,979
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 kW AC
Cumulative Sum of PV System Size (kW AC)
Continued Growth of Solar in Pasadena
33 City of Pasadena
6 Solar Installations
by Customer Sector and Capacity
Solar Only (87%)
Commercial, 120
, 4%
Residential,
2,952 , 96%
Count of PV Systems
Commercial,
12,059 , 40%
Residential,
17,920 , 60%
Size of PV Systems (in KW AC)
34 City of Pasadena
7 • Pasadena Municipal Code
• PMC 13.04-177 - Solar system size is intended to offset all or part of the facility's own electrical requirements
• Pasadena’s Regulations 21 and 23
• Regulation 21 – Electric Service Requirements (ESR)
• Regulation 23 – Distributed Generation Facilities Interconnection Requirements
Solar System Installation
Current Requirements
35 City of Pasadena
Solar Systems and Pasadena’s Electric Grid
8 Benefits:
• Advances clean energy goals
• Reduces peak demand: Alleviates system load during peak demand periods when paired with energy storage
• Proximity to load: Decreases the reliance on long-distance transmission, thereby minimizing energy losses
Opportunity Issues:
• Excess solar gets sent back to grid –potential voltage rise/overloading
• Infrastructure upgrades varies based on solar penetration in area – new transformers or other equipment required
• Mismatch timing of solar production with energy consumption (when not paired with storage)
Moving Forward:
• Aligning production and demands: Inclusion of battery energy storage and customer response to Time of Use (TOU) pricing • Continue to strategically upgrade local distribution system 36 City of Pasadena
Evolution of Solar Incentives
http://www.leginfo.ca.gov/pub/95-96/bill/sen/sb_0651-0700/sb_656_bill_950804_chaptered.html The structure as we know it today (NEM
1.0) was first adopted in 1995 (SB656).
There have been many changes since.
State Legislation
NEM 1.0 applied to all California publicly-
owned utilities (except LADWP) and
investor-owned utilities
Impacted Power
Utilities
• Customers must have eligible generating
systems
• Billed/credits through a net metering
structure
Structure
37 City of Pasadena
Evolution of Solar Incentives
http://www.leginfo.ca.gov/pub/95-96/bill/sen/sb_0651-0700/sb_656_bill_950804_chaptered.html Compensation rate adopted by Utility’s
ratemaking authority – i.e., City Council.
Rate ordinance in place since 2008 in
PMC.
Compensation Rate
Program is subject to cap (i.e., the
incentive can be replaced after a certain
amount of customer adoption). Pasadena
reached its cap in 2020.
Limits/Sunset
Many have gone to a model beyond
“NEM”, once their cap had been
reached. Glendale is on NEM 1.0,
Burbank is now considering NEM 3.0+
State of Our Peers
38 City of Pasadena
11 Electric Rate Structure
Energy Charge with PCA
$0.1381
Transmission Charge
$0.0161
Distribution Charge
$0.0575
Public Benefits Charge
$0.0068
Grid Access Charge
$0.0088
Customer Charge
$0.0076
FY2025 Proposed Operating Budget Average System Rate = $0.2349 per kWh Charged based on usage (per kWh
charge)
Charged per account
Charged based on State law (non-
discretionary charge)
39 City of Pasadena
A Day for NEM Customers
40 City of Pasadena
Energy Charge with PCA
$0.1381
Transmission Charge
$0.0161
Distribution Charge
$0.0575
$0.2117 per
kWh
Amount per kWh not billed or
credited for renewable electrical
generation facility use
On a Sunny Morning
Customer Avoided
Costs - self-generation
and use that is not
billed
41 City of Pasadena
Energy Charge Credit
$0.1381
Mid-day - Credit
Customer CREDIT of
$0.1381 per kWh
for a bi-monthly customer
42 City of Pasadena
Energy Charge with PCA
$0.1381
Transmission Charge
$0.0161
Distribution Charge
$0.0575
After Sundown - Charge
Customer CHARGE of
$0.2117 per kWh
43 City of Pasadena
16 NEM Rate Structure
FY2025 Proposed Operating Budget Average System Rate = $0.2349 per kWh If export is greater than import, the net Credit is $0.0174 per kWh on bill + full retail amount saved by consumed before the meter A no-net export example is: @ 750 kWh/month (500 kWh behind meter solar use, 250 kWh export to grid, 250 kWh import from grid) = $87.45 return on investment for solar/month
Bill Component Per kWh Charge
(Credit)
Energy Charge with PCA $0.1381
Transmission Charge $0.0161
Distribution Charge $0.0575
Energy Charge Credit $(0.1381)
Renewable Energy Attributes or Credits $(0.025)
Bi-monthly Net Metering Credit $(0.066)
$(0.091) of net
$0.2117
This process is repeated every day of the billing cycle. Charges and credits are determined either monthly, bi-monthly or annually depending on account status and interconnection agreement when self-generation is installed $(0.1381)
44 City of Pasadena
GLENDALE
LADWP
PASADENA
EDISON
Does not have AMI yet or TOU rates.
PWP offers NEM incentives. Currently
no rebates for solar and storage.
Oversizing generally prohibited but will
allow an additional 3,000 kWh with EV.
Time Of Use
Rates
Advanced Metering
Infrastructure
NEM
Incentives
Solar & Storage
Rebates
Oversizing
Allowed
BURBANK
Has AMI but does not have TOU. They offer
NEM (there is current proposal to revise).
No rebates for solar and storage. Oversizing
100% of historical usage. But, up to 150% for
systems with combined battery storage.
Has aging AMI (replacement planned). No
TOU. Offers NEM incentives. No rebates
for solar and storage. Oversizing allowed
up to 110%.
Solar Program Case Studies
Only has small amount of AMI (pilot) and no TOU required for the self-generation rate. They offer NEM incentives. No rebates for solar and storage Oversizing allowed up to150% but no
compensation for net generation.
Has TOU, AMI and Net Energy Billing for new solar installations.
Offers $750-$1,000 rebate through CCA provider. Oversizing allowed up to 150%, but no compensation for net generation. 45 City of Pasadena
Building Permit Process
18 PWP
Application
submitted on
PowerClerk
PWP Initial
Review
Building
Permit
PTO Request &
PWP
Inspection
PWP Meter
Installation
•Permission to
Operate
Building
& Safety
Building
Permit
Building
Inspection
Fire
Fire
Inspection on
ESS*
• Same Day Permit Issuance
> Over the Counter or Express Solar
> Building Permit is valid for 2-Years on Single Family properties and 3-Years on Multifamily and Commercial properties in accordance with City Council Ordinance 7416 (November 2023).
*Energy Storage System (ESS)
46 City of Pasadena
Building Permit Types
19 SB379
38.4 KW
Single Family Residential
Roof Mounted Solar
Battery Optional
• Solar Express
• Ov
er the Counter
• Standard Solar Permit
> All other types of Solar and Battery Systems
47 City of Pasadena
Building Permit Inspection Requirements
20 Inspections Required Solar
Only
Battery
Exterior
Battery
Interior
Fire Alarm and Fire Ratings X
Fire Final Inspection X X
Building Final Inspection X X X
PWP Inspection X X X
48 City of Pasadena
City Improvements Since Last Update
• Maintenance fixes on Express Solar Permitting
syste
m that complies with SB379 (Wiener, 2022)
> Improved system integration with PowerClerk software. > Improved immediate customer feedback on the
ap
plication validation.
• Simplified inspection request options via online
sche
duling system.
• Improved inspection coordination between
Bu
ilding and Fire services.
• Currently evaluating the effectiveness of Solar
Exp
ress system implemented in 2023.
21 49
City of Pasadena
PWP Improvements Since Last Update
• Interconnection Agreements:
> For solar systems exceeding 15kW, customers
ar
e no longer obligated to include the City as
an additional insured on their property/liability
insurance.
> For customer convenience, PWP is now
acce
pting electronic signatures.
• To verify account information, PWP only
r
equires the most recent utility bill, instead
of the previous 12 months' statements.
22 50
City of Pasadena
Resources for Customers/Contractors
23 Websites
• PWP Solar: PWPweb.com/solar
• PWP Solar Application Portal: pwpinterconnect.powerclerk.com • Pasadena Solar App
Express: https://mypermits.cityofpasadena.net/Permit/Express Contact Information
• PWP Electric Service Planning (626) 744-4495 (option 1) • PWP Customer Service (billing questions) (626) 744-4005 • Pasadena Permit Center (626) 744-4200 51