From:
To: Jones, Justin; Rick Cole; Hampton, Tyron; Lyon, Jason Cc: cityclerk
Subject: Public Comment MSC May 27, Item 1.
Date: Tuesday, May 27, 2025 1:29:28 PM
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Electric Ratepayers are being asked to pay an additional $10.5 million to the city’s General Fund, an increase of 58% above the $18 million transferred annually from the Power Fund to the General Fund, FY 2021 – FY 2024.
In addition, there is a proposed
$7.6 million rate increase “primarily driven by capital revenue requirements.”
However,
electric ratepayers already paid in advance for capital needs through aggressive monthly rate adjustments in 2023 and 2024, resulting in record net income for the Power Fund despite a reduction in usage.
The Power Fund 5-year Operating Summary, (PWP Annual Report FY 2024, page 13) states that in Fiscal Year 2024, retail revenues increased by $30.6 million, even as total usage declined by 6%.”
Net Income reached a new high of $78,967,000 due to
increased revenue and reduced operating expense.
On page 17, the report goes on to
state that “with favorable prices, diligent cost control and proactive rate management, FY 2024 has a favorable net income that is planned for future reinvestment in the system.” WAPD_Annual-Report_2024.pdf
Proactive rate management refers to the Power Fund’s aggressive monthly adjustments to the Energy Charge (All kilowatt hours per month) for electric ratepayers.
In one month from February to March 2023, there was an increase of 27.4% to the Energy Charge followed by smaller monthly increases.
The table below compares PWP Winter
and Summer energy charges before and after the initiation of monthly rate increases.
The greatest Winter Rate increase is 59% from January 2023 to 2024.
The greatest
Summer Rate increase is 47% from June 2022 to 2024.
Winter Rates Summer Rates
1/1/2023 1/1/2024 6/1/2022 6/1/2023
Energy
Charge
$0.09127 $0.14477 $0.10053 $0.13453
% increase 59% 34%
1/1/2023 1/1/2025 6/1/2022 6/1/2024
Energy
Charge
$0.09127 $0.12977 $0.10053 $0.14803
% Increase 42% 47%
The Power Fund’s record revenue increase in FY 2024 occurred despite a 6% decline in total energy usage.
This revenue increase was due to the compounding of upward monthly Energy Charge adjustments referred to as “proactive rate management”.
Pasadena Power’s FY 2024 record high net income was paid in advance by ratepayers and the “surplus” must be used to reinvest in the system as promised by PWP in their
2024 Annual Report.
WHERE IS THE PLAN TO ACHIEVE CARBON-FREE POWER IN 2030? SO- CALLED “SURPLUS REVENUE” WAS PAID IN ADVANCE BY
RATEPAYERS AND SHOULD BE USED FOR THEIR DIRECT BENEFIT:
CARBON-FREE, AFFORDABLE POWER IN 2030. PLEASE DO NOT
APPROVE THE PROPOSED $10.5 MILLION ADDITIONAL TRANSFER TO THE GENERAL FUND.
Sincerely,
Genette Foster
District 2