AGENDA
MUNICIPAL SERVICES COMMITTEE
REGULAR MEETING NOTICE
MARCH 10, 2026
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, General Manager
Lisa Hosey, Assistant 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.
I
n 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) 74
4-4124 por lo menos con 24 horas de anticipación.
I
tems 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 REGULAR MEETING FOR MARCH 10, 2026, AT 4:00 P.M. WILL BE ACCEPTED IN- PERSON AND BY VIDEOCONFERENCE/TELECONFERENCE.
Link to City Meeting Policy:
cityofpasadena.net/CityCouncilMeetingPolicy
T
O VIEW A LIVE STREAM OF THE MEETING:
http://pasadena.granicus.com/MediaPlayer.php?publish_id=9 AND
WWW.PASADENAMEDIA.ORG
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1. Whether participating in-person or virtually at the meeting, members of the public may provide public comment by submitting a speaker card prior to the start of public comment on that item, at the following webpage:
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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.
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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,
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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
MARCH 10, 2026
PUBLIC MEETING: 4:00 PM
PASADENA CITY HALL, COUNCIL CHAMBER
100 NORTH GARFIELD AVENUE, ROOM S249
N
OTICE IS HEREBY GIVEN that the regular meeting of the Municipal Services Committee will be held on Tuesday, March 10, 2026, at 4:00 p.m., to discuss matters on the attached agenda.
Justin Jones, Chair
M
unicipal 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 5, 2026, 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.
Derrick Airitam
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
MARCH 10, 2026
Public Meeting: 4:00 P.M.
Council Chamber, Pasadena
City Hall 100 North Garfield Avenue, Room S249
The Municipal Services Committee may take action within its authority on any item listed on this agenda as it deems appropriate following consideration and discussion of the matter.
APPROVAL OF MINUTES
January 27, 2026 (Regular Meeting)
February 10, 2026 (Regular Meeting)
INFORMATIONAL ONLY
Information only items contain no staff recommendations. The committee may, however, take action within its authority relating to informational items on the agenda as it deems appropriate following consideration and discussion of the matter.
1. GENERAL OVERVIEW OF DATA CENTERS AND THEIR IMPACT ON
ELECTRIC AND WATER DISTRIBUTION SYSTEMS
2. PROGRAM OVERVIEW FOR SOLAR AND BATTERY REBATES AND LOW
INTEREST LOANS FOR SOLAR INSTALLATION
PUBLIC MEETING - 4:00 P.M.
ROLL CALL
PUBLIC COMMENT
ADJOURN
NEW BUSINESS/ACTION ITEMS
1 01 01/27/2026
CITY OF PASADENA
MUNICIPAL SERVICES COMMITTEE MINUTES
PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
CITY HALL COUNCIL CHAMBER – S249
JANUARY 27, 2026 MEETING
OPENING The Chair called the meeting of the Municipal Services Committee to order at 4:05 p.m.
ROLL CALL:
Staff:
Councilmember Justin Jones, Chair
Councilmember Tyron Hampton (Arrived at 4:17 p.m.)
Councilmember Rick Cole
Councilmember Jason Lyon
Greg de Vinck, Director of Public Works Department
Brent Maue, City Engineer
Dawn Petschauer, Stormwater Program Administrator
Lisa Hosey, Assistant City Attorney
Christine Soo, Recording Secretary
PUBLIC COMMENT No one appeared for public comment on matters not on the agenda.
INFORMATIONAL ONLY SEWER SYSTEM MANAGEMENT PLAN
Councilmember Hampton
arrived at 4:17 p.m.
Greg de Vinck, Director of Public Works Department, provided introductory comments, and Brent Maue, City Engineer, summarized the staff memo as part of the PowerPoint presentation on the item, including providing information on the City’s Sewer Network, regulatory background, fats, oils, and grease (FOG) Program, and rate adjustments; with both responding to questions.
In response to Chair Jone’s inquiry on predictive data analysis, staff stated that inspection data may be incorporated into predictive technologies to help identify and prioritize areas for repair and will be shared with the Committee.
Following discussion, on the order of the Chair, and by consensus of the Committee, the information was received and filed.
JEFFERSON PARK STORMWATER CAPTURE PROJECT
Chair Jones stated a conflict of
interest, recused himself from
the item, and left the meeting at
4:32 p.m.
Greg de Vinck, Director of Public Works Department, provided introductory comments, and Dawn Petschauer, Stormwater Program Administrator, summarized the staff memo as part of the PowerPoint presentation on the item, including providing information on permit requirements, Storm Drain Master Plan , Watershed Assessment, project concept, project funding, consultant selection, and project timeline; and responded to questions.
The following individuals raised concerns with the project location and timeline, neighborhood impact, financial impact, community outreach and input, and/or provided related comments on the matter:
Donna Sider, Pasadena resident
2 02 01/27/2026
Genette Foster, Pasadena resident
Ken Kules, resident not stated
Kerry French, Pasadena resident
Edith Tyebkhan, Pasadena resident
Christine Soo, Recording Secretary, reported that four letters of correspondence were received by the City Clerk’s Office, which were distributed to the Committee, posted online, and made part of the record for this item.
In response to inquiries from public comments, Dawn Petschauer, Stormwater Program Administrator, provided information on targeted and Citywide outreach efforts, the current pre-design phrase, a general project timeline, upcoming geotechnical analysis , potential collaboration with Pasadena Unified School District (PUSD) and other City departments, Measure W funding, operation and maintenance.
In response to Councilmember Cole’s inquiry regarding groundwater recharge, Brent Maue, City Engineer, discussed factors affecting recharge potential, including infiltration rate, system sizing, and water quality, and responded to questions.
Councilmember Hampton asked staff to update the presentation posted online to reflect the PowerPoint presentation shown during the meeting, and to prioritize stormwater reuse and recharge to benefit residents. He also asked staff to consider construction planning; and to establish a Technical Advisory Committee ( TAC) that includes a City resident member to promote transparency and public access to information.
Councilmember Lyon spoke on the importance of genuine, active community dialogue and engagement; and clarified that the properties belonging to the PUSD are governed by the state, a separate entity from the City.
Councilmember Cole expressed interest in the Jefferson Elementary school site, echoed Councilmember Hampton’s remarks on the importance of groundwater recharge, advocated for continued genuine community dialogue and participation, and proposed to have a Citywide TAC and a neighborhood advisory committee.
Councilmember Hampton request ed for a Citywide quarterly updates on the measure of the project.
Following discussion, on the order of the Acting Chair, and by consensus of the Committee, the information was received and filed. 3 03 01/27/2026
On the order of the Acting Chair, the meeting of the Municipal Services Committee was adjourned at 5:30 p.m.
ADJOURNMENT
__________________________
Councilmember Justin Jones, Chair
Municipal Services Committee
ATTEST:
____________________
Betty Gao
Recording Secretary
4 01 02/10/2026
CITY OF PASADENA
MUNICIPAL SERVICES COMMITTEE MINUTES
PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
CITY HALL COUNCIL CHAMBER – S249
FEBRUARY 10, 2026 MEETING
OPENING Acting Chair Hampton called the meeting of the Municipal Services Committee to order at 4:08 p.m.
ROLL CALL:
Staff:
Councilmember Justin Jones, Chair (Arrived at 4: 22 p.m.) Councilmember Tyron Hampton
Councilmember Rick Cole
Councilmember Jason Lyon
David Reyes, General Manager of Water and Power
Jeremy Marquette, Assistant General Manager for Customer Service and Technology
Lynne Chaimowitz, Assistant General Manager of Water and Power Lisa Hosey, Assistant City Attorney
Betty Gao, Recording Secretary
PUBLIC COMMENT No one appeared for public comment on matters not on the agenda.
APPROVAL OF MINUTES It was moved by Councilmember Lyon, seconded by Coun cilmember Cole, to approve the minutes of January 13, 2026, as submitted. (Motion unanimously approved) (Absent: Councilmember Jones)
INFORMATIONAL ONLY TECHNOLOGY PROJECTS UPDATE
Councilmember Jones arrived
at 4: 22 p.m.
David Reyes, General Manager of Water and Power, provided introductory comments, and Jeremy Marquette, Assistant General Manager with Customer Service and Technology, summarized the staff memo as part of the PowerPoint presentation on the item, including providing information on advanced metering infrastructure (AMI), carbon free energy goals, enterprise asset management (EAM), geographic information system (GIS) enhancements, and
cybersecurity; with both responding to questions.
Councilmember Cole applauded staff for delivering an excellent presentation. He also emphasized the importance of job adjustments and maintaining loyalty to City employees as utilities undergo technological transitions, and advocated for a user -friendly, customer- centered design approach to ensure residents can easily navigate services.
Councilmember Hampton asked staff to provide additional information regarding disconnecting and reconnecting fees.
In response to Councilmember Cole’s inquiry regarding targeted customer outreach, General Manager Reyes stated that staff is developing a centralized integration plan in partnership with City departments and will bring forward a proposed approach to the Committee in the near future.
5 02 02/10/2026
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.
Sam Berndt, representing Pasadena 100, advocated for a
comparative proposal to implement AMI using City staff and expressed concerns regarding current budget allocations for municipal solar.
Following discussion, on the order of the Chair, and by consensus of the Committee, the information was received and filed.
NEW BUSINESS SET PUBLIC HEARING DATE – ELECTRIC RATE ADJUSTMENTS
David Reyes, 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 rate strategy and plan and customer impacts; with both responding to questions.
Chair Jones emphasized the importance of providing residents with adequate time between the public hearing and the effective date of utility rate changes.
Councilmember Cole expressed concerns with staff rushing the electric rate adjustment process and not provide the community with sufficient time to provide input on the matter.
Councilmember Lyon suggested having sufficient time between the Council meeting, the public hearing date, and adoption of the utility rate resolution, and recommended displaying rate comparisons with other neighboring utilities to provide context for residents.
Regarding City Council meeting scheduling, Matthew Hawkesworth, Assistant City Manager, provided a brief overview of upcoming major City Council agenda items for discussion.
In response to Chair Jones’ inquiry regarding a Consumer Price Index (CPI) rate strategy, Assistant General Manager Chaimowitz stated that a CPI rate strategy is something staff could consider for future rate- settings approach.
Councilmember Hampton advocated for proactive outreach to customers with payment challenges to ensure th ose customers are informed and supported by City staff.
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.
Sam Berndt, representing Pasadena 100, thanked the Committee and staff for their work and for prioritizing equity and transparency in the rate-setting approach.
6 03 02/10/2026
Lisa Hosey, Assistant City Attorney, recommend that staff amend the Agenda Report, Recommendation No. 2, from “…conduct a public hearing…” to “ open a public hearing…” which would accomplish the Committee recommendations.
Following discussion, it was moved by Councilmember Hampton, seconded by Councilmember Cole, forward the item to the City Council on February 23, 2026 to request the City Council to set a public hearing date for March 2, 2026 , staff to provide a presentation and receive public comment on the item, and continue the public hearing to a future City Council meeting. (Motion unanimously approved) (Absent: None)
On the order of the Chair, the meeting of the Municipal Services Committee was adjourned at 5:34 p.m.
ADJOURNMENT
__________________________
Councilmember Justin Jones, Chair
Municipal Services Committee
ATTEST:
____________________
Betty Gao
Recording Secretary
7 ITEM #1
8 PASADENA WATER AND POWER
MEMORANDUM
March 10, 2026
To: Muni
cipal Services Committee
From:
David M. Reyes
General Manager
Subj
ect: Overview of Data Centers
At
tached for the Municipal Services Committee is a presentation from Pasadena Water and Power (“PWP”) providing a general overview of data centers and their impact on electric and water distribution systems. This is presented as an informational item.
The pr
esentation reflects research conducted by PWP staff on this topic.
Atta
chment: Data Center Overview Presentation
9 Pasadena Water and Power
Overview of Data Centers
Municipal Services Committee
March 10, 2026
Item #1
Pasadena Water and Power
What is a Data Center?
2 A data center is a physical facility that houses computing infrastructure – such as servers and networking equipment – designed to process, store, and transmit large volumes of digital data
Source: (c) Scanrail | Dreamstime.com
Source: NY Times
Pasadena Water and Power
Types of Data Centers
3 • There are many types of data centers used for a wide variety of purposes
• We can categorize them into two main buckets based on power consumption:
> Conventional
> Hyperscale
Pasadena Water and Power
Conventional Data Centers
4 • Run on processors known as Central Processing
Units or CPUs
• Designed for general IT workloads like databases,
enterprise systems, email, web apps, and the “cloud”
• Steady, predictable, and moderate power consumption
> 5–10 kW per rack (sometimes up to 15 kW in modern setups) > Typically, less than 1 MW of load per facility
Pasadena Water and Power
Hyperscale Data Centers
5 • Run on processors known as Graphic Processing
Units or GPUs
• Generally, designed for AI
• Intense and bursty loads during AI training
• Often consume much more power than conventional data
center
> 30–60 kW per rack is common; High-end AI racks can exceed 80– 100+ kW
> Typically, over 20 MW per facility
Pasadena Water and Power
Data Center Growth in California
6 • Northern California (PG&E and Silicon Valley Power) has been the epicenter of data center growth in California
• Southern California (SCE) is also seeing interest, although it’s not as large as Silicon Valley. This growth is clustered in the Inland Empire and LA Basin
Source: https://www.assembly.ca.gov/media/joint-hearing-utilities-and-energy-committee-and-privacy-and-consumer-protection-committee-20260128 Pasadena Water and Power
Silicon Valley Power (SVP) – Data Centers
7 • Largest data center cluster on West Coast – over 55 data centers • Projecting load growth from 750 MW to 1250+ MW within the next 5 to 10 years • Planning for additional power, transmission capacity, and infrastructure upgrades • Local Benefits:
> Contributed property taxes fund County and City services and support school districts > General Fund - Each MW of growth of usage from SVP adds approximately $60,000 a year to the General Fund (a 50 MW data center could contribute up to $3.0 million) • Barriers and Challenges:
> Availability of Grid Power (Power Requests exceeding current grid capacity) > Load ramps can be online faster than new generation or transmission can be built > Increased concerns from local communities
> New infrastructure
> Backup Diesel Generation (Air Quality) and Data Center noise > Supply chain issues
Source: SVP Presentation to CMUA 2025 Annual Conference (https://www.cmua.org/files/Manuel%20Pineda%20CMUAFinal.pdf) Pasadena Water and Power
Data Centers in the U.S.
8 Pasadena Water and Power
Power Sources
9 • Primary source of power is the utility grid – one or multiple connections for redundancy
> Due to the large load, typical connection is at a transmission/subtransmission line as opposed to a distribution line
• Co-location with Generation
> Allows facility to pull power directly from a local generator (like a natural gas power plant) before it reaches the grid
> Typical in other states
> PWP does not allow for the interconnection of non-renewable generating sources to the grid
• Backup systems for high reliability requirements
> Uninterruptible Power Supply (UPS): Battery storage
> Emergency generators
Proposed California Bill SB 978 (Pérez): Banning Diesel Generators Pasadena Water and Power
Peak Demand and Generation Requirements
10 • Any new loads that contribute to the peak (not just data centers) is more load that needs to be supported by local generation (Glenarm Power Plant) or Battery Storage
Pasadena Water and Power
Load Profile Analysis - Large Commercial Customers
11 0
200
400
600
800
1000
1200
1400
1600
Large Load Power Usage by Customer Type
Data Center Grocery Store EV Charging Stations Office Building High School KW
Pasadena Water and Power
Energy Consumption
12 • Data centers run continuously – 8,760 hours annually at 90- 100% load factor
• Energy consumption will vary based on the data center size
> Example: a 10MW data center may consume ~78,840 MWh
annually, which is equivalent to over 8,000 homes
Pasadena Water and Power
Energy Consumption Comparison
13 Size (MW) Annual Consumption
(MWh)
Comparison
Pasadena’s
System (1)
Number of Home
(2)
Number of EVs (3)
10 78,840 7% 8,200 23,000
25 197,100 18% 20,500 57,500
50 394,200 36% 41,000 115,000
100 788,400 72% 82,000 230,000
500 3,942,000 358% 410,000 1,150,000
(1) Annual system load of: ~1,100 GWh
(2) Typical residential home consumption: ~9.6 MWh / yr (3) Typical EV consumption: ~ 3.5 MWh / yr
Pasadena Water and Power
Cooling Systems
14 • Operating thousands of servers simultaneously generates significant thermal energy
• Air and/or liquid cooling is used to dissipate heat
> Air cooling (HVAC) is typically used for conventional data centers > Hyperscale data centers often use advanced liquid cooling or direct-to-chip cooling
Evaporative Cooling (less power intensive – more water usage) Closed Loop System (more power intensive – less water usage) Pasadena Water and Power
Water Consumption
15 • Water demand varies greatly
> A key industry metric is Water Use Effectiveness (WUE, L/kWh) Measurement of how much water (L) is consumed for cooling annually divided by the energy consumed by the IT equipment (kWh)
> The amount of water use for the same unit of digital output can vary by 10,000 times (1,000,000%) due to many factors, including server efficiency, server utilization, electrical grid water consumption considerations, cooling system type, data center infrastructure operating efficiency, and climatic conditions, among other factors • Example water usage from 40 to 1,800 acre-feet annually for 10 MW to 500 MW capacity data center
> Based on estimated WUE of 0.48 L/kWh (note: this may vary greatly on a case-by-case basis) > Equivalent to serving 120 to 5,400 homes
> Google-owned data centers ranged from <1 to >5,000 acre-feet of annual demand in 2024 with an average use of around 900 acre-feet
Sources: American Water Works Association; Lawrence Berkeley National Lab (https://eta-publications.lbl.gov/sites/default/files/2024-12/lbnl-2024-united-states-data-center- energy-usage-report_1.pdf); Google Environmental Report 2025 Pasadena Water and Power
California Legislation
16 • SB 57 – Ratepayer and Technological Innovation Protection Act (2025)
> Requires California Public Utilities Commission (CPUC) to examine whether rapid growth of data center electricity demand could shift costs onto other ratepayers. CPUC to complete this assessment by January 1, 2027
Evaluate procurement, grid upgrade, and stranded asset costs associated with large data center loads
Identify strategies to mitigate any substantial cost shifts, if identified
Pasadena Water and Power
Legislation Examples from Other States
17 • Virginia
> Approved a new rate class (GS-5) that applies for customers with demand of 25 MW or more, effective January 2027
> Developers must pay a minimum of 85% of contracted capacity for distribution and transmission, and 60% of their contracted generation demand
> New contracts carry a 14-year term (including an optional four-year load ramp), obligating data centers to pay for reserved capacity even if load fails to materialize
Pasadena Water and Power
Legislation Examples from Other States
18 • Ohio
> Public Utilities Commission of Ohio approved a tariff, in July 2025, requiring new data centers with peak demand exceeding 25 MW to p
ay for at least 85% of their average monthly demand, regardless of actual use
> The initial term of the contract will equal the load ramp period (no g
reater than four years) plus eight years, with early exit fees > Developers are now required to provide financial collateral or guarantees to prove their viability before construction begins.
Pasadena Water and Power
Legislation Examples from Other States
19 • Minnesota
> HF16, approved in June 2025, requires segregation of 'very large cu
stomers' into a separate rate class
> The law explicitly prohibits any cost shifting: Data centers must pay 100% of incremental costs for grid upgrades. Costs cannot be shifted to residential or small business customers.
> Large customers must bear the financial risk if they reduce demand or relocate before infrastructure investments are fully recovered. > Each large data center must contribute $2 to $5 million annually to fund low-income energy conservation and home weatherization programs > Data centers must align with Minnesota’s 100% carbon-free energy by 2040.
Pasadena Water and Power
Legislation Examples from Other States
20 • Texas
> SB 6, approved in July 2025, mandates re-evaluation of cost allocation methodologies and requires new large loads to c
ontribute to grid upgrade costs
> Data Centers Developers must also provide proof of financial commitment to minimize "stranded" infrastructure costs if the project falls through.
> Separate legislation expanded oversight of large loads and requires curtailment protocols for large loads connected after December 31, 2025, during grid emergencies.
Pasadena Water and Power
Legislation Examples from Other States
21 • New Jersey
> Passed a law in July 2025 requiring the Board of Public Utilities to study whether data centers are causing "unreasonable subsidies" from residential ratepayers. The report is due by late 2026. > Large Load Tariffs (A5462): Passed in January 2026, this bill requires electric utilities to submit new tariffs specifically for "large load customers" (define d
a
s 100 MW+ aggregate monthly demand).
New large load customers may be required to guarantee payment for at least 85% of requested service for a period of 10 years to protect against infrastructure underutilization.
The Board of Public Utilities must design these tariffs to incentivize technologies that capture and reuse the heat generated by data centers.
Pasadena Water and Power
California Independent System Operator (CAISO)
Grid Perspective
22 • Data centers present the largest use-case of large loads, but electric vehicle charging, and electrification of agricultural and industrial processes also will contribute to this growth.
• CAISO is studying 4.5 GW of data centers in the current 2025-2026 transmission plan. • California Energy Commission (CEC) forecasts data center load in the CAISO Balancing Area to increase by 1.8 GW by 2030 and 4.9 GW by 2040.
• Load forecasts are highly unpredictable and challenge short-term and long-term planning, for example:
> PG&E’s 2025 data center pipeline went from 5.5 GW in February to 8.7 GW in May to 10 GW in June to 9.6 GW in October.
> Many project proposals are submitted to multiple utilities and are subsequently withdrawn by the applicant due to either project fall-through or choosing a different service territory • Utilities are receiving an increasing number of large load interconnection and service a
pplications.
Pasadena Water and Power
Local Zoning Consideration
23 • Data Centers as a Land Use–
> Interpretation – Could be defined as an Office, Industrial or R&D use i
f found to be similar to one or more of these existing uses. > Ancillary – Could be considered an ancillary use if combined with another primary use.
> New Use – Code Amendment to establish a definition for Data Center, identify permitted zones and needed entitlements (i.e., by- right or with a CUP).
> Combination of the above.
Pasadena Water and Power
Financial and Economic Considerations
24 • Contracts and tariffs must be developed for full cost recovery. > Arguments for existing contracts being done under a veil of non-disclosure has been a significant topic of debate.
> Contracts must also be long-term to ensure recapture of investment and protect against speculative load forecasts.
• Rate-making process must also be clear and transparent to exposure of captive customers paying for investments in transmission or other system costs that have been argued to increase costs for existing customers.
• Many costs are the product of supply and demand: much of w
hich there is little local control.
Pasadena Water and Power
Opportunities
25 • Additional opportunities for economic growth in areas of bi
o-tech and life sciences
• Additional tax revenue for the City (property tax, UUT, etc.)
• Large load requests can trigger PWP to upgrade aging
in
frastructure, with costs borne by developer
Pasadena Water and Power
Challenges
26 • Extreme power demand and import constrains may force PWP to run local generation more often, which may impact the 2030 IRP/OSP goal • Potential increase in water usage, especially with evaporative cooling • Potential stranded assets if demand is overestimated or does not materialize
• New large loads (even outside Pasadena) increase resource adequacy requirements and can create or worsen network congestion, forcing more expensive local generation and driving wholesale prices up • Air quality issues from diesel backup generation
• Noise pollution from cooling systems and backup generators Pasadena Water and Power
Next Steps
27 • Potentially develop local regulations and utility
interconnection requirements specific to large data
centers (Continue to work through the MSC)
• Continue working with regional, state, and federal
partners (SCPPA, CMUA, CAISO, NERC, FERC)
Pasadena Water and Power
Questions?
28 ITEM #2
10 PASADENA WATER AND POWER
MEMORANDUM
Match 10, 2026
To: M
unicipal Services Committee
From: David M. R eyes
G
eneral Manager
Subject: Solar an d Battery Rebate Program Overview
Attached for the Municipal Services Committee is a presentation from Pasadena Water and Power (PWP) providing a summary of the new Solar and Battery Rebate Program for residential and commercial electric customers. This is presented as an informational item.
The presentation details PW P’s r ebate amounts, eligibility criteria, additional benefits for low-income customers, and comparisons with other utility programs.
Attachment: Solar and Battery Rebate Overview Presentation 11 Pasadena Water and Power
Solar and Storage Rebate Program
Municipal Services Committee
March 10, 2026
Item #2
Pasadena Water and Power
Program Overview
• Objective:
> Launch solar and battery storage rebates
Supports OSP implementation of Resolution 9977
Increases local clean energy generation
Increases grid flexibility
• Funding:
> $2.65 million from Public Benefits Fund
• Equity:
> Both programs have enhanced rates for low-income customers • Grid Modernization:
> Lays foundation for future Virtual Power Plant (VPP) and Demand Response (DR) programs
2 Pasadena Water and Power
• Base Incentive:> $0.60/Watt
• Enhanced Incentive:
> $1/Watt for low income
• Budget:
> $800,000 – standard residential
> $200,000 – low-income
• Impact:
> Approximately 1.5MW on 220 homes
> $4,200-$7,000 estimated average rebate
• Requirements:
> New permanent rooftop installs/expansions
> Installed by a licensed C-10 contractor
No third-party owned via leases or PPAs
Residential Solar
3 Pasadena Water and Power
• Base Incentive:
> $0.40/Watt
• Maximum Cap:
> $80,000/Meter
• Budget:
> $800,000 annually
• Impact:
> Approximately 2MW on 30 businesses
> $20,000 estimated average rebate
• Requirements:
> New, permanent install or expansion by licensed C-10 contractor Commercial Solar
4 Pasadena Water and Power
Residential Battery Storage
• Base Incentive:
> $350/kWh
• Enhanced Incentive:
> $550/kWh for low income or medical
• Budget:
> $323,000 – standard residential
> $57,000 – low income
• Impact:
> Approximately 1MWh for 75 homes
> $4,725-$7,425 estimated average rebate
• Eligibility:
> New or retrofits, with or without existing solar
Must meet safety standards like UL 9540
5 Pasadena Water and Power
Commercial Battery Storage
• Base Incentive:
> $225/kWh for first 200 kWh, then $100/kWh
• Maximum Cap:
> $80,000/meter
• Budget:
> $470,000 annually
• Impact
> Approximately 2MWh for 20 projects
> $22,500 estimated average rebate
• Eligibility:
> 2-hr duration (min)
> 85% round-trip efficiency
> 10-year warranty (min)
6 Pasadena Water and Power
Solar Program Comparisons
7 Utility Residential Commercial Notes
CA Solar Initiative $0.20/Watt $0.20/Watt State funded.
Ended 2016
Silicon Valley
Power N/A $0.75/Watt Limited to 80% of
energy usage
Austin Energy
(TX)
$2,500 ($0.50/Watt
for 5kW system) $0.50/Watt Flat rate all systems
Reading Municipal
Light Dept. (MA) $1.20/Watt $0.60/Watt Highest incentives nationally
Pasadena (old) $0.30/Watt $0.30/Watt Ended 2017
Pasadena (new) $0.60-$1.00/Watt $0.40/Watt $80,000 cap for commercial
*Glendale Water & Power, Burbank Water & Power, and SCE do not offer solar rebates currently.
LADWP offers a rebate for solar carport canopies only.
Pasadena Water and Power
Battery Program Comparisons
8 Utility Residential Commercia
l
Cap Notes
SMUD
(Sacramento) $400/kWh N/A $10,000 Must enroll in SMUD
VPP
Central Cost
Community Energy $300-$500/kWh N/A $13,000
Battery must discharge
>50% of its capacity
daily during peak hours
(4pm - 9pm)
Anaheim $3,000 N/A $3,000 VPP program available
but not required
Burbank $275-$550/kWh $275/kWh $27,500
Battery must
discharge >80% of
its capacity daily during
peak hours (4pm - 7pm)
Pasadena $350-$550/kWh $225/kWh $80,000
Must enroll in future
PWP VPP for at least
36 months
Pasadena Water and Power
Critical Requirement – VPP/DR Ready
• Demand Response Ready:
> All storage rebate recipients must enroll
in PWP future VPP/DR programs
• Terms:
> Enrollment required for 36 months (min)
after VPP/DR program launch
> Must complete within 90 days of launch
• Enforcement:
> PWP may claw back 20% of incentive for early exit or refusal to enroll • Strategic Goal:
> Create a demand response asset of 1-2 MW annual peak reduction 9 Pasadena Water and Power
• Marketing Campaign:
> Including but not limited to: Advertisements (print/digital/broadcast), press releases, Op-Eds, newsletters (CM & PWP), collaboration with community- based organizations, Council Liaison/District outreach, Key Account customers, BIDs, chamber, events, PSA videos, social media (City & PWP), libraries, community centers, Economic Development coordination, community events (including PWP Open House).
• Solar Loan Program:
> Low-income focus
> Rate buy-down via partnership with financial institution > RFP later this month
Outreach & Other Information
10 Pasadena Water and Power
Questions?
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