Pasadena Water and Power
Approval of the Optimized Strategic Plan
Establishing an Action Plan to Achieve the Goals Set Forth by City Council-Adopted Resolution 9977
December 15, 2025
City Council
Item #18
Pasadena Water and Power
MSC Recommendation
2 • On November 5, 2025, the Municipal Services
Committee (“MSC”) unanimously recommended that
the City Council adopt and approve PWP’s OSP, with
five revisions that were incorporated:
1. Clarify that the goal of the OSP is to reach carbon-free on an hourly basis, supporting Resolution 9977;
2. Increase the goal for Additional Local Solar Resources from Staff’s 50 Megawatts (“MW”) recommendation to 70 MW with 50 coming from customer-owned solar;
3. Include a timeline for incentives, initiatives, and an education campaign to increase the adoption of local solar;
4. Remove references to proposed changes to Net Energy Metering (“NEM”); and
5. Provide additional narrative regarding the viability of hydrogen as an emerging technology.
Pasadena Water and Power
MSC Recommendation
3 • The MSC Recommendations were incorporated into the OSP:
> Goal of the OSP is to reach carbon-free on an hourly basis, supporting Resolution 9977 Executive Summary – Page 7 - States the OSP presents a plan to achieve 100% hourly Executive Summary – Page 9 - States the planning targets are designed to achieve 100% hourly OSP Report – Page 65 - Direction from MSC to pursue 100% hourly accelerated > Increase the goal for local solar to 70 MW
Executive Summary – Page 10 - Table showing planning targets Executive Summary – Page 16 (Gantt Chart)
OSP Report – Page 77 - Planning target figures
OSP Report – (Gantt Chart)
> Include a timeline for incentives, initiatives, and an education campaign OSP Report – Page 14 - Upfront incentives and PBC funds OSP Report – Page 16 (Gantt Chart)
OSP Report – Page 88 (Gantt Chart)
OSP Report – Page 89 - Discussion of incentives to be rolled out in 2026 OSP Report – Page 90 - Lowering customer barriers
OSP Report – Page 133 – 136 - Outreach plan in the learner > Remove references to NEM
OSP Report – Page 89 - Evaluate all programs in rate study OSP Report – Page 90 - Evaluate all programs and rates > Provide addition narrative on viability of hydrogen
OSP Report – Page 19 - Discusses dependence upon regional network OSP Report – Page 21 – 22 - Discusses dependence upon regional network OSP Report – Page 53 - Reason for consideration
> Customer Solar Sizing
OSP Report – Page 14
OSP Report – Page 16 (Gantt Chart)
OSP Report – Page 88 (Gantt Chart)
OSP Report – Page 90 - Plan to revise sizing
Pasadena Water and Power
MSC Requested Study Sessions
4 • As part of the implementation of the OSP, PWP will return to the MSC with a series of study session focused on advancing local solar adoption
> These study sessions are intended to provide the MSC with a comprehensive understanding of the current solar landscape, identify opportunities to reduce barriers to customer participation, and evaluate potential policy and program enhancements that support the City’s clean energy goals • Proposed Study Session Topics:
> Solar Capacity Limits – 150% to 200% of customer’s maximum annual electricity use
> Municipal Solar CIP Budget – Inclusion of solar installations on municipal facilities > Public Benefit Funds – Utilization of Public Benefit Funding to reach target of maximum conservation and maximum renewable generation
> Net Energy Metering – Overview of current program, rate design, customer impacts and alignment with policies
> Barriers to local solar adoption – Identification and analysis of financial, technical, and operational barriers limiting customer adoption and solutions > PWP Structure and Staffing – Review PWP’s organizational structure and staffing resources as they relate to OSP goals including solar administration, interconnection, customer support, and long-term program scalability > Implementation Pathways and Next Steps – Discussion of potential programmatic, policy, and operational changes informed by the study sessions, along with timelines, decision points, and trackable accountability metrics Pasadena Water and Power
Background
5 On January 30, 2023,
City Council adopted
Resolution 9977
• Declares that climate change
is an emergency that threatens
the health and welfare of the
city, region, state, nation, and
the environment
> Sets forth a policy goal to source
100% of Pasadena's electricity
from carbon-free sources by the
end of 2030
> Provides direction to plan
multiple approaches to transition
to this policy goal and optimize
for affordability, rate equity,
stability, and reliability of
electricity while achieving this
goal
> Approved contract with Energy
and Environmental Economics
(E3) to assist with development of
the Optimized Strategic Plan
(OSP)
Pasadena Water and Power
Accomplishments Summary
6 Pasadena has consistently outpaced
State mandates for renewable energy
• In 2015, the Pasadena City Council set a
voluntary Renewable Portfolio Standard (RPS)
goal of 40% by 2020
> Goal achieved by exceeding the State’s
mandated RPS of 33% by 2020
• In 2018, PWP made the pivotal decision not to
renew participation in the Intermountain
Power Project beyond 2027
> Eliminates the single largest source of
carbon emissions; coal retired 11/26/25
> Procured 300+ MW ($1.2 billion) in long-
term contracts for carbon-free energy
• Furthering this commitment, on December 11,
2023, the Pasadena City Council unanimously
approved PWP’s 2023 Power IRP
> 2023 Power IRP incorporated Resolution
9977 goals
> Accomplishments already put PWP on
track to meet State’s 100% goal 15 years
ahead (around 90% on hourly basis)
PWP Power Accomplishments Since 2018 IRP
Coso Geothermal Project (10 MW - 20 MW, COD 2027)
Geysers Geothermal (25 MW)
Bonanza Solar and Storage
CalWind Wind Resource II
Grace Orchard Solar
Glenarm Battery Energy Storage System
Broadway Battery Energy Storage System
All-Source Power Purchase Agreement Request for Proposals Development Engage Large customers in the Voluntary Load Curtilament Program (VLCP) Energy Efficiency Programs
EV and EV Charger Rebate Program
E-Bicycle Rebate Program
Low Interest Solar Loan Program
Energy Storage Rebate Program
Demand Side Grid Support Program
Demand Response Program
Power Up Pasadena Campaign
Holly Garage Charging Station
Marengo Charging Station
Schoolhouse Garage Charging Station
Los Robles Garage Charging Station
Playhouse Village Park Charging Facility
Delacey Garage Charging Station
Arroyo Charging Facility
Robinson Park Charging Station
Victory Park Charing Station
Del Mar Metro Station Facility Expansion Project
Shopper's Lane Charging Depot
Distribution Battery Pilot Project on Power Poles
Customer Solar Aggregation Pilot
Rooftop Wind Microturbine Pilot
Long-Duration Energy Storage Pilot
Microgrid Pilots
Community-Owned Solar
Feed in Tariff Development
Solar Permitting Process Improvements
Oversized Solar Permitting Updates
Partnership with Los Angeles Clean Tech Incubator (LACI) Clean Energy Tracker Webpage
Optimized Strategic Plan (OSP) Campaign and Education Program Partnership With Caltech - Memorandum of Understanding Caltech-PWP Working Group - Energy Efficiency/Demand Response Caltech-PWP Working Group - Local Resources/Battery Energy Storage Systems Caltech-PWP Working Group - Distribution, Power Delivery, and Resiliency Caltech-PWP Working Group - PPA and Renewable Procurement EngagePWP.org website and Community Feedback Campaign
Ongoing community outreach (news releases, events, collateral, stakeholder engagement) 2021 Integrated Resource Plan (IRP) Update
Publish Updates to the Power Delivery Master Plan
2023 IRP
Prepaid Renewable Energy Transaction for Cost Savings
Optimized Strategic Plan (OSP)
Electric Rate Study
Caltech Power Flow Study Collaboration
Department of Water Resources - Water and Energy Grant
California Energy Commission - Distributed Energy Backup Assets (DEBA) - Glenarm BESS American Public Power Association - Demonstration of Energy & Efficiency Developments (DEED) Department of Energy (DOE) - EnergyWerx Voucher Program - Voucher 8 DOE - EnergyWerx Voucher Program - Voucher 3
DOE - Energy Efficiency and Conservation Block Grant (EECBG) Eniviromental Protection Agency (EPA) - Clean Heavy-Duty Vehicles APPA DEED (Co-op with DOE) - DE-CR0000015
CalStart - Communities in Charge
Support for EV deployment
California Electric Vehicle Infrastructure Project (CALeVIP) - SCIP-L2, L3, L4, L5, L6, L7, L8, & L9 Funding for publicly available EV chargers
DOE - Grid Resilience and Innovative Partnership - AMI DOE - Grid Resilience and Innovative Partnership - Glenarm BESS EPA - Solar for All Grant
CEC - California Clean Energy Planning Program
FEMA - Hazard Mitigation Grant Program
CalStart - Energiize
Supporting EV deployment
Carl Moyer Memorial Air Quality Standards Attainment Program Funding to replace gas/diesel vehicles with electric or alternative fuel vehicles DOE - Energy Storage Pilot Demonstrations
CEC - Round 2 Community Energy Reliability and Resilience Investment (CERRI) Program - AMI Customer Information System (CIS) Project
Overhead Distribution Wires Undergrounding Project
Advanced Metering Infrastructure (AMI)
Legend
PWP actions
Key City Council approvals
Completion
2019 202520232020 2021 2022 2024
Infrastructure
Studies
Community
Engagement
Customer Programs
Local Resources
Electrification
Grant Applications
(Awarded)
Grant Applications
(Not Awarded)
Grant Applications
(Awaiting Status)
Procure Additional
Large-Scale
Renewables and
Storage
Pasadena Water and Power
Accomplishment Highlights
7 Clean Energy Transition
•$1.2 billion in geothermal, solar, storage and wind (300+MW) •All-Source PPA RFP development
•Local community-owned solar/storage RFP development
•Grants/Pilots – DOE LDES vouchers, APPA rooftop wind, CEC DEBA $9.66M for Glenarm BESS, battery on poles, solar RECs Programs and Community Engagement
•Voluntary Load Curtailment, Demand Side Grid Support,
Demand Response & Energy Efficiency Programs
•EV/Charger, E-Bike & Storage Rebates; Solar Loans
•Caltech Partnership (MOU + Working Groups)
•LACI, EngagePWP.org, Clean Energy Tracker
Infrastructure Projects
•Customer Information System (CIS)
•12+ EV Charging Station Facilities (Holly Garage, Delacey, Arroyo, Victory Park & Del Mar Metro Station Expansion
•Advanced Metering Infrastructure (AMI)
•Overhead Distribution Undergrounding
Pasadena Water and Power
OSP Collaborative Process
8 Stakeholders and community engagement have been
instrumental in the development of the OSP
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Pasadena City Council
Municipal Service Committee
Environmental Advisory Commission
Technical Advisory Panel
Pasadena Community Meetings
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Pasadena City Council
Municipal Service Committee
Environmental Advisory Commission
Technical Advisory Panel
Pasadena Community Meetings
2024
2025Community
Engagement Calendar
Pasadena Water and Power
Technical Advisory Panel
• TAP Members:
> Sam Berndt, Member, Pasadena 100
> Cynthia Cannady, Member, Pasadena
100
> David Coher, Resident
> David Kang, Associate Vice President
for Facilities, California Institute of
Technology
> Paul Little, President, Pasadena
Chamber of Commerce
> Dr. Stephen Low, Professor of
Computing and Mathematical Sciences
and Electrical Engineering, California
Institute of Technology
> Lauren Siegel, Chair, Environmental
Advisory Committee
9 The Technical Advisory Panel (“TAP”), comprised of a broad segment of community stakeholders was created to provide valuable input to aspects of the OSP development process Pasadena 100’s ongoing dedication and
thoughtful contributions have played a vital
role in shaping and advancing the carbon-free
planning efforts
Pasadena Water and Power
OSP Public Engagement
Members of the public were able to share
their thoughts on the Draft OSP by
submitting feedback on various topics
including:
•OSP Overview
•Renewables & Storage
•Local Solar
•Programs & Rates
•Glenarm Power Plant
•Power Delivery
•New Technologies
•Partnerships
During the public comment period,
EngagePWP accumulated:
•2,686 Site Visits
•2,162 Unique Visitors
•117 Draft OSP Downloads
•34 Draft OSP Executive Summary
Downloads
•87 Comments Across 8 Different Response
Topics
10 • PWP engaged in a public comment period from October 6 through October 27, 2025 on PWPEngage.com
• Large support for Pasadena’s 100% carbon-free electricity goal by 2030 • Some critical and cautionary feedback as unrealistic and increased costs • Concerns around reliability, emergency preparedness, wildfire risks & safety
Pasadena Water and Power
Pillars of the OSP
Pasadena Water and Power
OSP Highlights
• The OSP modeled seven case studies to
explore carbon-free pathways
> Explored portfolios designed to meet 100% annual
carbon-free goals and 100% hourly carbon-free
goals
12 Pasadena Water and Power
Hourly vs. Annual Case Studies
• Additions of local solar and
storage, along with
additions of external wind
allow PWP to meet 100% of
annual energy needs with
carbon-free energy
• The hourly and annual case
studies have the same local
resource additions
• 220 MW of additional
resources are required to
achieve100% annual
matching
• 550 MW of additional
resources are required to
achieve100% hourly
matching
13 Pasadena Water and Power
Subset of Case Studies
Pasadena Water and Power
OSP Planning Targets by 2030
Local Solar
+70 MW
Local Battery
Storage
+75MW
Wind
Up to 175 MW
Solar
Up to 125 MW
Battery Storage
Up to 100 MW
Geothermal
Up to 25 MW
Commercial Demand
Response
+15 MW
Residential DR Participants
+5,000 homes
Managed EV Charging
100%
Additional Utility-
Scale Resources
New Local
Resources
New Customer
Programs and
Rates
Planning targets were informed by the full suite of case studies evaluated in the OSP, but are largely derived from the 100% Hourly Matching, Accelerated Local Resources case study.
Note: Planning targets represent incremental additions to existing and future resources already under contract
Pasadena Water and Power
Implementation Roadmap
16 • OSP Action Plan
includes:
> Procurement of new
utility-scale clean
energy contracts
> Development of
local solar on city-
owned property
> Customer programs,
outreach, and
marketing
campaigns
> Pilot projects
showcasing new and
emerging
technologies
Pasadena Water and Power
Customer Rooftop Solar
17 • OSP Planning Target for Customer-Owned Solar:
> 50 MW of new solar by 2030
Average Size of Residential install in 2024: 6.02 kW
Average Size of Commercial installs in 2024: 82.6 kW
• In 2024, 306 (93%) residential installations and 24 (7%) commercial under Net Energy Metering and federal tax credits > In terms of capacity commercial outweighs residential Of the 3.82 MW of solar installed, Commercial customers installed 1.9 MW or 49.7%
Currently 1/3 of the existing rooftop capacity size is residential • Goal of 50 MW by 2030 could require:
> ~4,000 new residential installs, ~800/year
Currently there 3,062 residential systems installed since 2008 (96%) > ~313 new commercial installs, ~62/year
Currently there are 121 commercial systems installed
• The expiration of federal tax credits on 1/1/26 may have an impact on the solar adoption rate
Pasadena Water and Power
Community-Owned Solar
The Community-Owned Solar
Initiative would install solar at
City-owned facilities
• 20 MW Community-Owned Solar
Planning Target:
Installation of 20 MW by the end of
2030 would require
30+ small- to- medium sites
10+MW site at the Rosebowl
An estimated CIP budget of ~$90
million over 5 years
18 Type of Site Total
Number
of Site
Number of
Sites
suitable for
Solar
Estimated
Total Solar
Capacity
(MW)
Libraries 10 7 ~1.2 MW
Fire Stations 8 7 ~0.5 MW
Parking
Garages
9 6 ~2.3 MW
Water
Infrastructure
List still
being
compiled
6 ~4.7 MW
(additional
sites under
evaluation)
Parks 12 4
evaluated
so far
~1.9 MW
Rosebowl 1 1 ~10-15 MW
Note: These are the initial sites being evaluated, others will include Government Buildings, Electrical Infrastructure, Police Infrastructure, Community Centers, and Parking Lots
Note: These are preliminary sizing estimates that will require confirmation. PWP is investigating the procurement of an advanced software to support detailed site analysis.
Pasadena Water and Power
Performance Reporting
19 OSP presents a flexible and adaptable set of
action plans that position PWP to address new or
changing conditions and priorities
PWP has developed a plan for transparency with
regular checkpoints and updates to track
progress
Quarterly
Updates to
MSC
Annual
updates to
EAC
Clean Energy
Tracker
Webpage
2026 and
2028
Waypoints
Annual
Customer
Program
Reports
City Council
Review of
New Power
Purchases
100% Annual
Carbon-Free
Milestone
Update
Pasadena Water and Power
Next Steps
20 • Contracts for utility-scale renewables and
storage resources
• Contracts for the development of solar and
storage on city-owned properties
• Rate and customer program changes
• Capital plans for power delivery infrastructure
upgrades (incorp into Capital Budgets)
Future City
Council
approvals
• Ongoing Quarterly Updates to MSC
• Assess the progress made and associated
impacts
• Ensure priorities are incorporated into the
development of the 2028 IRP
2028
Waypoint
Pasadena Water and Power
MSC Recommendation
21 • On November 5, 2025, the Municipal Services
Committee (“MSC”) unanimously recommended that
the City Council adopt and approve PWP’s OSP, with
five revisions that were incorporated:
1. Clarify that the goal of the OSP is to reach carbon-free on an hourly basis, supporting Resolution 9977;
2. Increase the goal for Additional Local Solar Resources from Staff’s 50 Megawatts (“MW”) recommendation to 70 MW with 50 coming from customer-owned solar;
3. Include a timeline for incentives, initiatives, and an education campaign to increase the adoption of local solar;
4. Remove references to proposed changes to Net Energy Metering (“NEM”); and
5. Provide additional narrative regarding the viability of hydrogen as an emerging technology.
Pasadena Water and Power
Recommendation
22 1) Find that the action statutorily exempt from
the California Environmental Quality Act
("CEQA") pursuant to State CEQA Guidelines
Section 15262; and
2) Adopt and approve Pasadena Water and
Power’s (“PWP”) Optimized Strategic Plan
(“OSP”), outlining actionable steps to meet
the goals set forth by City Council-adopted
Resolution 9977;
Pasadena Water and Power
Back-up Slides
24 2031 Installed Capacity Across Case Studies
25 2031 Cost Comparison Across Case Studies
Note: Incremental cost measured relative to a “least-cost” portfolio designed to meet 100% of Pasadena’s annual energy needs with carbon-free resources 26 0%
50%
100%
150%
200%
250%
300%
350%
400%
Hourly Carbon-Free Resource
Availability (% of Hourly Load)
Hours in Year (Ranked Highest to Lowest)
100% Hourly Matching:
Supplying load with 100% carbon-free energy during the
most constrained conditions across the year requires a
portfolio that produces a large surplus of carbon-free
energy outside of those constrained periods
Surplus carbon-free generation must be curtailed or sold to the market, making PWP heavily dependent on 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)
100% Annual Matching:
A portfolio that is sized to supply 100% of annual energy needs with carbon-free energy results in a “balanced”
position in wholesale markets:
Carbon-free resources meet or exceed hourly demand across most of the year; in aggregate, surpluses match or exceed deficits
Lower reliance on revenues from off-system sales; increased opportunities to maximize value of flexible storage resources 2031 Duration Curves of Carbon-Free Energy Resources
Deficit of
carbon-free
resources
Surplus of
carbon-free
resources
Annual
Matching
100% Hourly Matching 170%
100% Annual Matching 108%
Both portfolios include accelerated local resources &
Glenarm as backup
DRAFT
27 PWP’s maximum import capability from
CAISO is 280 MW
Throughout most of the year, loads within
Pasadena service territory are below this
threshold
• During these periods, local and external
resources can both meet city’s entire energy
needs
During summer peak periods, energy
demands are expected to increase to
levels above 280 MW
• The need to serve loads above 280 MW with
local resources is one of the reasons Glenarm
currently operates during the year
• Meeting this portion of the city’s needs with
local solar and storage instead would require
roughly 80 MW of local solar and 100 MW off
local storage
Role of Local and Internal Resources Due to Transmission Constraints
0 50
100
150
200
250
300
350
400
Hour of Year (Ranked Highest to Lowest )
Duration Curve, 2031 Total Hourly Electricity Demand
(MW)
Demand that may be met by local or
external resources when Goodrich is at full
capacity
Demand that must be met by local
resources (requires approximately 80 MW
of local solar and 100 MW of local
storage)
Maximum import limit from CAISO
(280 MW)
Pasadena Water and Power
Estimated Timelines
• Community-Owned Solar will take time to implement and there is great risk for missing the deadline depending on any number of potential delays • Estimated Timelines from RFP release to Commercial Operation Date (COD) for Community Owned Solar
> For smaller projects (i.e. Library Rooftop) – Estimated timeline of 12-24+ months > For medium sized projects (i.e. Victory Park Parking Lot) – Estimated timeline of 2-4+ years > For the Rosebowl Project – Estimated timeline of 4+ years • Timeline risk may be partially mitigated by directing all City departments to collaborate on these projects
> Many City departments will touch at least one aspect of all projects > Other Solar Groups in other cities have recommended having a City Council/City Manager directive for all departments to collaborate together on the solar program would improve the chance of success Smaller Project
(50-300kW)
RFP Process
(3-5 months)
Contract
Negotiations
(3-6 months)
Permitting and
Design
(2 -6 months)
Construction
and Installation
(2-4 months)
COD
(Total Length –
10-24 months)
Medium Sized
Project
(300kW-1MW)
RFP Process (3-5
months)
Contract
Negotiations
(3-5 months)
Permitting and
Design (9-18
months)
Construction and
Installation (3-8
months)
COD
(Total Length – 18-
36 months)
Rosebowl
(10-15MW)
RFP Process
(5-7 months)
Contract
Negotiations
(6-9 months)
Permitting
and Design
(12-24
months)
Interconnecti
on Process (9
– 18)
Construction
and Installation
(12-24 months)
COD
(Total Length
4+ Years)
Pasadena Water and Power
Changes to the OSP since MSC
• Executive Summary
> Clarified the OSP’s hourly carbon free target, supporting Resolution 9977
> Incorporated MSC’s direction to update the local solar goal from 50MW to 70MW, with 50 MW coming from customer-owned solar Emphasized flexibility in planning targets, particularly related to specific programs (Customer-Owned solar, FIT, Community- Owned Solar, etc.) for local solar adoption
Discussed PWP’s planned incentives for solar and storage Added details on the ways PWP is helping to lower the barriers to solar adoption throughout the City
> Clarified that PWP has made no commitment to pursue a Hydrogen conversion at Glenarm, but that PWP will continue to monitor the industry as it develops, as we would evaluate any emerging technology
Pasadena Water and Power
Changes to the OSP since MSC
• Pillars of the Plan for Carbon-Free Electricity
> Provided additional details on the City’s commitment to rolling out incentives for local solar and storage
> Indicated PWP to bring solar sizing changes from 150% to 200% before MSC/Council
> Espoused the need for City-wide cooperation on the municipal solar effort
• Throughout
> Clarified the OSP’s hourly carbon free target, supporting Resolution 9977
> Clarified PWP’s commitment to maintaining flexibility by evaluating, but not committing, to emerging technologies as they mature > Updated all references, charts, and figures to show the 70MW local solar target
> Updated all charts and figures to reflect other directed changes throughout