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AR 4 ORDINANCE

Pasadena City Council
March 30, 2026

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AR 4 ORDINANCE
Meeting
March 30, 2026
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Pasadena City Council
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Text extracted from the city's file for reading and search. Open the original on ww2.cityofpasadena.net. That file is the official record.

Introduced by:

ORDINANCE NO.

AN ORDINANCE OF THE CITY OF PASADENA, CALIFORNIA AMENDING THE LIGHT AND POWER RATE ORDINANCE, TITLE 13, CHAPTER 13.04 OF THE

PASADENA MUNICIPAL CODE
The People of the City of Pasadena ordain as follows:

SECTION 1. This ordinance, due to its length and corresponding cost of publication, will be published by title and summary as permitted in Section 508 of the Pasadena City Charter. The approved summary of this ordinance is as follows:
"Summary
The purpose of Ordinance No. _ is to generate sufficient revenue to operate and reinvest in the City's electrical grid. The revenue needs are based on a financial plan that accounts for the realities of increasing costs of supplies for operations as well as increased capital investment needed to ensure the long-term integrity of the Pasadena electrical system.

Ordinance No. _ shall take effect its publication."
SECTION 2. Title 13, Chapter 13.04, Section 13.04.020 of the Pasadena Municipal Code is hereby repealed in its entirety and replaced with a new Section

13.04.020 to read as follows:
"13.04.020 Definitions
A. "Apparent power" means the total electrical capacity required to supply a load, regardless of how efficiently the power is used.

B. "Billing demand" means the greater of (i) the kilowatts of measured maximum demand occurring during the current month or (ii) the highest demand recorded in the last four months, including the current billing month. Billing demand is determined to the nearest kW.

C. "Customer charge" is a fixed monthly charge regardless of energy use. It is generally associated with services such as billing, customer service, meter reading, and connection to the grid.

D. "Department," "Pasadena Water and Power" or "PWP," as herein used, means the municipal water and power department of the City of Pasadena. 1 E. "Distribution charge" is a usage-based charge generally associated with the cost of delivering electricity from the substations, including operation and maintenance costs, capital investment and debt service.

F. "Electric Utility Rate Resolution" means a schedule of pricing for all fees, penalties, refunds, reimbursements, and charges of any kind collected by the Department and adopted by City Council.

G. "Energy services charge" (including power cost adjustment) is a usage- based charge generally associated with the solely variable cost of generating the actual amount of electricity consumed, measured in kilowatt-hours.

H. "Greenhouse gas" or "GHG" is a collective term for those gases that reduce the loss of heat from the earth's atmosphere, and thus contribute to global warming and climate change.

I. "Grid access charge" is a fixed monthly charge generally associated with the fixed costs of connecting to and maintaining the electric grid, regardless of their energy consumption.

J. "Holidays" refer to days recognized by the North American Electric Reliability Corporation (NERC) that typically impact electricity demand and pricing.

Holidays include New Year's Day (January 1), Memorial Day (last Monday in May), Independence Day (July 4), Labor Day (first Monday in September), Thanksgiving Day (fourth Thursday in November), and Christmas Day (December 25). These holidays may be updated from time to time based on NERC guidelines.

K. "Horsepower" or "hp," as herein used means a mechanical unit of power.

L. "Interval Read Capable Meter" refers to electric meters that can record and transmit energy usage data at regular, predefined intervals, rather than providing a cumulative total once per billing cycle.

M. "kilowatt" or "kW" is a unit of power equal to one thousand watts. It measures the rate at which energy is used or produced.

N. "kWh" as herein used, indicates and means "kilowatt hours." A kWh is a standard unit of energy used to measure electricity consumption. It represents the amount of energy used when a device that consumes 1,000 watts (or 1 kilowatt) operates for one hour.
2 0. "megawatt" or "MW" is a unit of power equal to one million watts. A MW is a unit of power that measures the rate at which energy is used or produced.

P. "MWh" as herein used, indicates and means "megawatt hours." A MWh is a standard unit of energy used to measure electricity consumption. It represents the amount of energy used when a device that consumes one million watts and operates for one hour.

Q. "Net deficit electricity" means the electricity consumed by a customer- generator, as measured in kWh, exceeds electricity generated by that eligible customer- generator.

R. "Net neutral electricity" means the electricity consumed by a customer- generator, as measured in kWh, equals the electricity generated by that eligible customer-generator.

S. "Net surplus electricity" means the electricity generated by a customer- generator, as measured in kWh, exceeds the amount of electricity consumed by that eligible customer-generator.

T. "Portfolio content category one (PCC1)" means an eligible renewable energy resource interconnected or scheduled into a California balancing authority at the same time of generation pursuant to Sections 399.16(b)(1), 399.16(c)(1) and 399.30(c)(3) of the California Public Utilities Code.

U. "Power equipment" means electrical machinery such as motors, welding machines, battery chargers, radio-sending and X-ray equipment will normally be operated on a separate power meter. However, some power equipment, especially smaller size equipment, may be added and operated on the regular lighting meter, provided the starting and stopping or fluctuating load characteristics do not cause objectionable voltage fluctuations in any service rendered by the Department. The use of power equipment on lighting or combination meters must have the approval of the general manager of the Department.

V. "Power Factor" means the ratio of real power (kilowatts) to apparent power (kilovolt-amperes) for any given load and time (maximum value = 1.0). Power Factor = Real Power/Apparent Power
3 W. "Public benefit charge" or "PBC" is a state-mandated nonbypassable, usage-based public benefit charge to fund assistance programs, energy efficiency and renewable energy projects.

X. "Reactive Power" means the portion of "apparent power" which does no work but must be supplied to power equipment, such as motors—usually expressed in kilovars (kvar).

Y. "Real Power" means the work producing part of "apparent power" or rate of supply of energy—usually expressed in kilowatts (kW).

Z. "Renewable energy credit" or "REC" means a certificate of proof that one unit of electricity was generated by an eligible renewable energy resource. RECs are accumulated on a kWh basis and one REC represents the green attributes associated with the generation of one MWh from the electric generation facility.

AA. "Reservation Charge" is the monthly demand charge applied to the customer's total nameplate capacity (kW) CC.

BB. "Retail customers" means customers who choose PWP as their energy supplier.

CC. "System energy sales" means the estimated total energy sales delivered to all customers.

DD. "Time-of-Use" or "TOD" is electricity pricing where the price of electricity varies depending on the time of day, day of the week, and season. Electricity is more expensive during peak demand periods.

EE. "Transmission services charge" is a usage-based charge generally associated with the cost of delivering electricity from the generating plants to our sub- stations."
SECTION 3. Title 13, Chapter 13.04, Section 13.04.030 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.030 Light and power rate standards
The rates to be charged and collected for furnishing and delivering electrical energy, and the terms, provisions and conditions respecting such rates, delivery of electrical energy and for service supplied by the Department shall be fixed as set forth in the following sections."
4 SECTION 4. Title 13, Chapter 13.04 of the Pasadena Municipal Code is hereby amended to add a new Section 13.04.031 to read as follows:
"13.04.031 Pricing, pricing periods, and seasons
A. Pricing: The pricing for all fees, penalties, refunds, reimbursements, and charges of any kind collected by the Department pursuant to the provisions of this chapter shall be specified in the Electric Utility Rate Resolution, as amended by the Council from time to time. Whenever applicable throughout this chapter, reference shall be made to the Electric Utility Rate Resolution in lieu of any reference to specific fee amounts.

B. Seasonal Periods: Pricing varies between high and low demand months and the associated costs to provide services during those time periods. Prior to Interval Read Capable Meter Implementation, there are two time-period blocks on-peak and off-peak defined in the Electric Utility Rate Resolution. After Interval Read Capable Meter Implementation, there will be three time- period blocks, on-peak, off-peak and critical peak.

C. Prior to Interval Read Capable Meter implementation: "High Season" means the period of June through September and "Low Season" means the period of October through July.

D. After Interval Read Capable Meter Implementation: "High Season" means the period of July through October and "Low Season" means the period of November through June.

E. Time-of-Use Periods. "Time-of-Use" or "TOU" periods reflect when systems costs are high or low to signal to customers to shift usage to times that are better for the overall electric system and provide pricing for service components which varies by time of day and season of the year. The three time-of-use periods are "on-peak", "off-peak" and "critical-peak" that vary in their times based on electric system energy costs."
SECTION 5. Title 13, Chapter 13.04, Section 13.04.040 of the Pasadena Municipal Code is hereby repealed in its entirety and replaced with a new Section

13.04.040 to read as follows:
"13.04.040 Residential single-family service (Schedule R-1) t(,
5 The terms and conditions of services hereunder shall be provided by Schedule R-1, as found in the Electric Utility Rate Resolution:

A. Applicability. Applies to separately metered single-family dwellings and to individual family accommodations with single phase 120/240-volt or 120/208-volt, and three-phase 120/208 or 240 volt service when used for residential purposes only, 60- cycle alternating current service. Motors with more than 150 amps locked motor are not served under this schedule.

B. Customer shall pay the sum of the following charges (1) customer charge, (2) distribution charge, (3) grid access charge, (4) energy services charge, (5) transmission services charge, and (6) public benefit charge. The minimum monthly charge shall be equal to the sum of the (1) customer charge and (2) the grid access charge.

C. Customers taking service under Schedule R-1 shall have two energy rate option for the energy services charge, the seasonal flat rate option or the Time-of-Use rate option. A customer may choose to receive energy under either option. Upon the adoption of Interval Read Capable Meters for billing, all customers will be automatically enrolled in the Time-of-Use rates. Until such time, Time-of-Use rates are subject to meter availability. When a customer requests a change of energy rate option, they may do so in writing and that customer may not change to another energy rate option before twelve months have elapsed."
SECTION 6. Title 13, Chapter 13.04, Section 13.04.045 of the Pasadena Municipal Code is hereby repealed in its entirety and replaced with a new Section

13.04.045 to read as follows:
"13.04.045 Residential multi-family service (Schedule R-2) The terms and conditions of services hereunder shall be provided by Schedule R-2, as found in the Electric Utility Rate Resolution:

A. Applicability. Applies to separately metered multi-family dwellings, including properties permitted as "live-work" space when used for residential purposes, and to individual family dwellings in multi-family dwellings. Multi-family dwellings are apartments, condominiums or town houses with at least four meters at the same physical location. The character of service furnished includes single phase 120/240-volt 6 or 120/208-volt, and 3-phase 120/208 or 240 volt service when used for residential purposes only, 60-cycle alternating current service. Motors with more than 150 amps locked motor are not served under this schedule.

B. Customer shall pay the sum of the following charges (1) customer charge, (2) distribution charge, (3) grid access charge, (4) energy services charge, (5) transmission services charge, and (6) public benefit charge. The minimum monthly charge shall be equal to the sum of (1) the customer charge and (2) the grid access charge.

C. Customers taking service under Schedule R-2 shall have two energy rate options for the energy services charge, the seasonal flat rate option or the Time-of-Use rate option. A customer may choose to receive energy under either option. Upon the adoption of Interval Read Capable Meters for billing, all customers will be automatically enrolled in the Time-of-Use rates. Until such time, Time-of-Use rates are subject to meter availability. When a customer requests a change of energy rate option, they may do so in writing and that customer may not change to another energy rate option before twelve months have elapsed."
SECTION 7. Title 13, Chapter 13.04 of the Pasadena Municipal Code is hereby amended to add a new Section 13.04,046 to read as follows:
"13.04.046 Electric utility assistance program (EUAP)
The programs hereunder are applicable to customers taking service under the Residential Single-Family Service (Schedule R-1) or Residential Multi-Family Service (Schedule R-2) in addition to the provisions set forth for each program:

A. Electric Utility Assistance Program -Basic Benefit. Any customer taking service under this schedule shall be eligible for a monthly credit against their electricity bills equal to the fixed charge rate components (customer charge and grid access charge), if the gross annual income per calendar year of the household in which such customer resides does not exceed the greater of the: (i) income level that qualifies for rental assistance under the City's low income rental assistance program; or, (ii) income eligibility criteria established by the California Public Utilities Commission ("CPUC") Low-lncome Oversight Board for rate assistance programs. The Department shall periodically certify that the customer is eligible for the basic benefit. 7 B. Electric Utility Assistance Program - Pasadena Cares. Any customer eligible for the basic benefit shall also be eligible for a credit equal to the public benefit charge provided the customer is either: a) sixty-two years of age or older; or b) meets the criteria of disability as established by the Social Security Administration's Supplemental Income Program for the Aged, Blind and Disabled under Title XVI of the Social Security Act, as amended. The Department shall periodically certify that the customer is eligible for the Pasadena Cares benefit.

C. Electric Utility Assistance Program - Medical. Any customer taking service under this schedule with doctor-prescribed life support equipment requiring electric utility service from the Department to operate shall be eligible for the Basic Benefit regardless of income. To qualify, a customer must submit satisfactory proof to the Department that a full-time occupant of the customer's premises requires a life support device. A qualifying life support device may be any one of the following or such other equipment as the Department may deem eligible: aerosol tents, apnea monitors, compressors or concentrators, electrostatic or ultrasonic nebulizers, electric nerve stimulators, hemodialysis machines, kidney dialysis machines, intermittent positive pressure breathing machines, iron lungs, pressure pads, pressure pumps, respirators, or suction machines."
SECTION 8. Title 13, Chapter 13.04, Section 13.04.050 of the Pasadena Municipal Code is hereby repealed in its entirety and replaced with a new Section

13.04.050 to read as follows:
"13.04.050 Small commercial service (Schedule S-1)
The terms and conditions of services hereunder shall be provided by Schedule S-1, as found in the Electric Utility Rate Resolution:

A. Applicability. Applies to single-phase and three-phase general service, including lighting and incidental small power, through a single meter. Applies to service below 30 kW demand. The character of service furnished may be single-phase 120/240 or 120/208 volt, and three-phase, 120/208, 240, 480, or 277/480 volt, 60-cycle alternating current service. Customers connected to 120/208 volt service whose sole usage of electricity is for residential purposes as defined by the PWP, shall be billed on the residential rate schedule. Single-phase motors 1/2 hp and larger shall be connected 8 at 240 volts or 208 volts. Motors 5 hp and larger shall be connected 3-phase. Motor- connected loads more than 49 hp are not served under this schedule.

B. Customer shall pay the sum of the following charges (1) customer charge for either (a) single-phase service or (b) three-phase service, (2) distribution charge, (3) grid access charge, (4) energy services charge, (5) transmission services charge, and (6) public benefit charge. The minimum monthly charge shall be equal to (1) the sum of the customer charge and (2) the grid access charge.

C. Customers taking service under Schedule S-1 shall have two energy rate options for the energy services charge, the seasonal flat rate option or the Time-of-Use rate option. A customer may choose to receive energy under either option. Upon the adoption of Interval Read Capable Meters for billing, all customers will be automatically enrolled in the Time-of-Use rates. Until such time, Time-of-Use rates are subject to meter availability. When a customer requests a change of energy rate option, they may do so in writing and that customer may not change to another energy rate option before twelve months have elapsed."
SECTION 9. Title 13, Chapter 13.04, Section 13.04.060 of the Pasadena Municipal Code is hereby repealed in its entirety and replaced with a new Section

13.04.060 to read as follows:
"13.04.060 Medium commercial service—secondary (Schedule M-2) The terms and conditions of services hereunder shall be provided by Schedule M-2, as found in the Electric Utility Rate Resolution:

A. Applicability. Applies to three-phase general service, including power and lighting, measured with demand meter. Applies to service at 30 kW demand or greater, but less than 300 kW demand. Any customer served under this schedule whose monthly maximum demand has registered less than 30 kW or greater than 300 kW for twelve consecutive months is no longer eligible for service under this Schedule M-2 and must take service under another applicable rate schedule. This schedule is subject to meter availability. Applies to services metered and delivered at voltages less than 4 kV.

The character of service furnished shall be three-phase 240, 480, 120/208 or 277/480 volt, 60 cycle alternating current service. Motors of 50 hp or more shall be served as determined by PWP. Billing demand shall not be less than 30 kW. 9 B. Customer shall pay the sum of the following charges (1) customer charge, (2) distribution charge, (3) grid access charge, (4) energy services charge, and (5) transmission services charge, and (6) public benefit charge.

C. Customers taking service under Schedule M-2 for the energy services charge, the seasonal flat rate option or the Time-of-Use rate option. A customer may choose to receive energy under either option. Upon the adoption of Interval Read Capable Meters for billing, all customers will be automatically enrolled in the Time-of- Use rates. Until such time, Time-of-Use rates are subject to meter availability. When a customer requests a change of energy rate option, they may do so in writing and that customer may not change to another energy rate option before twelve months have elapsed. The minimum monthly charge shall be equal to the sum of the customer charge, the distribution charge, and the grid access charge.

D. Power Factor Penalty and Discount.

1. Existing Loads: If a customer's load operates at a power factor of less than 75 percent, PWP may require installation of equipment to correct the power factor to 75 percent or better. A penalty of one percent of the distribution charge for each percent the average monthly power factor falls below 75 percent shall be added to the distribution charge.

2. A customer having a maximum demand of 50 kW or more shall be allowed a discount on the distribution charge of 0.333 percent for each percent the average monthly power factor exceeds 85 percent. The discount shall not exceed 5 percent. The power factor shall be computed to the nearest one percent. The discount shall be computed to the nearest one-tenth of one percent.

3. New Loads: On or after July 1, 2002, if a customer's load operates at a power factor of less than 85 percent, PWP may require installation of equipment to correct the power factor to 85 percent or better. A penalty of one percent of the distribution charge for each percent the average monthly power factor falls below 85 percent shall be added to the distribution charge.

4. A customer having a maximum demand of 50 kW or more shall be allowed a discount on the distribution charge of 0.333 percent for each percent the average monthly power factor exceeds 85 percent. The discount shall not exceed 5 percent. The 10 power factor shall be computed to the nearest one percent. The discount shall be computed to the nearest one-tenth of one percent."
SECTION 10. Title 13, Chapter 13.04, Section 13.04.064 of the Pasadena Municipal Code is hereby repealed in its entirety and replaced with a new Section

13.04.064 to read as follows:
"13.04.064 Medium commercial service—primary (Schedule M-1) The terms and conditions of services hereunder shall be provided by Schedule M-1, as found in the Electric Rate Utility Resolution:

A. Applicability. Applies to three-phase general service, including power and lighting, measured with demand meter. Applies to service at 30 kW demand or greater, but less than 300 kW demand. Any customer served under this schedule whose monthly maximum demand has registered less than 30 kW or greater than 300 kW for twelve consecutive months is no longer eligible for service under this Schedule M-1 and must take service under another applicable rate schedule. This schedule is subject to meter availability. Applies to services metered and delivered at voltages equal to or greater than 4 kV. The character of service furnished shall be three-phase, 60 cycle alternating current service at normal primary or sub-transmission voltages. Motors of 50 hp or more shall be served as determined by PWP. Billing demand shall not be less than 30 kW.

B. Customer shall pay the sum of the following charges (1) customer charge, (2) distribution charge, (3) grid access charge, (4) energy services charge, and (5) transmission services charge, and (6) public benefit charge. Customers taking service under Schedule M-1 shall have two energy rate options for the energy services charge, the seasonal flat rate option or the Time-of-Use rate option. A customer may choose to receive energy under either option. Upon the adoption of Interval Read Capable Meters for billing, all customers will be automatically enrolled in the Time-of-Use rates. Until such time, Time-of-Use rates are subject to meter availability. When a customer requests a change of energy rate option, they may do so in writing and that customer may not change to another energy rate option before twelve months have elapsed. The minimum monthly charge shall be equal to sum of the customer charge, the distribution charge, and the grid access charge.
11 C. Power Factor Penalty and Discount.

1. Existing Loads: If a customer's load operates at a power factor of less than 75 percent, PWP may require installation of equipment to correct the power factor to 75 percent or better. A penalty of one percent of the distribution charge for each percent the average monthly power factor falls below 75 percent shall be added to the distribution charge.

2. A customer having a maximum demand of 50 kW or more shall be allowed a discount on the distribution charge of 0.333 percent for each percent the average monthly power factor exceeds 85 percent. The discount shall not exceed 5 percent. The power factor shall be computed to the nearest one percent. The discount shall be computed to the nearest one-tenth of one percent.

3. New Loads: On or after July 1, 2002, if a customer's load operates at a power factor of less than 85 percent, PWP may require installation of equipment to correct the power factor to 85 percent or better. A penalty of one percent of the distribution charge for each percent the average monthly power factor falls below 85 percent shall be added to the distribution charge.

4. A customer having a maximum demand of 50 kW or more shall be allowed a discount on the distribution charge of 0.333 percent for each percent the average monthly power factor exceeds 85 percent. The discount shall not exceed 5 percent. The power factor shall be computed to the nearest one percent. The discount shall be computed to the nearest one-tenth of one percent."
SECTION 11. Title 13, Chapter 13.04, Section 13.04.067 of the Pasadena Municipal Code is hereby repealed in its entirety and replaced with a new Section

13.04.067 to read as follows:
"13.04.067 Large commercial and institutional service—secondary (Schedule L-2)
The terms and conditions of services hereunder shall be provided by Schedule L- 2, as found in the Electric Rate Utility Resolution:

A. Applicability. Applies to three-phase general service, including power and lighting, measured with demand meter. Applies to service at 300 kW demand or greater.

Any customer served under this schedule whose monthly maximum demand has 12 registered less than 300 kW for twelve consecutive months is no longer eligible for service under this Schedule L-2 and must take service under another applicable rate schedule. This schedule is subject to meter availability. Applies to sen/ices metered and delivered at voltages less than 4 kV. The character of service furnished shall be three- phase 240, 480, 120/208 or 277/480 volt, 60 cycle alternating current service. Motors of 50 hp or more shall be served as determined by PWP. Billing demand shall not be less than 300 kW
B. Customer shall pay the sum of the following charges (1) customer charge, (2) distribution charge, (3) grid access charge, (4) energy services charge, and (5) transmission services charge, and (6) public benefit charge. The minimum monthly charge shall be equal to the sum of the customer charge, the distribution charge, and the grid access charge.

C. Power Factor Penalty and Discount.

1. Existing Loads: If a customer's load operates at a power factor of less than 75 percent, PWP may require installation of equipment to correct the power factor to 75 percent or better. A penalty of one percent of the distribution charge for each percent the average monthly power factor falls below 75 percent shall be added to the distribution charge.

2. A customer having a maximum demand of 50 kW or more shall be allowed a discount on the distribution charge of 0.333 percent for each percent the average monthly power factor exceeds 85 percent. The discount shall not exceed 5 percent. The power factor shall be computed to the nearest one percent. The discount shall be computed to the nearest one-tenth of one percent.

3. New Loads: On or after July 1, 2002, if a customer's load operates at a power factor of less than 85 percent, PWP may require installation of equipment to correct the power factor to 85 percent or better. A penalty of one percent of the distribution charge for each percent the average monthly power factor falls below 85 percent shall be added to the distribution charge.

4. A customer having a maximum demand of 50 kW or more shall be allowed a discount on the distribution charge of 0.333 percent for each percent the average monthly power factor exceeds 85 percent. The discount shall not exceed 5 percent. The 13 power factor shall be computed to the nearest one percent. The discount shall be computed to the nearest one-tenth of one percent."
SECTION 12. Title 13, Chapter 13.04 of the Pasadena Municipal Code is hereby amended to add a new Section 13.04.069 to read as follows:
"13.04.069 Large commercial and institutional service—primary (Schedule L-1)
The terms and conditions of services hereunder shall be provided by Schedule L- 1, as found in the Electric Utility Rate Resolution.

A. Applicability. Applies to 3-phase general service, including power and lighting, measured with demand meter. Applies to service for a customer at 300 kW demand or greater for one month out of the previous 12 months. Any customer served under this schedule whose monthly maximum demand has registered less than 300 kW for twelve consecutive months is no longer eligible for service under this Schedule L-1 and must take service under another applicable rate schedule. This schedule is subject to meter availability. Applies to services metered and delivered at voltages equal to or greater than 4 kV. The character of service furnished shall be 3-phase, 60 cycle alternating current service at normal primary or sub-transmission voltages. Motors of 50 hp or more shall be served as determined by PWP. Billing demand shall not be less than 300 kW.

B. Customer shall pay the sum of the following charges (1) customer charge, (2) distribution charge, (3) grid access charge, (4) energy services charge, and (5) transmission services charge, and (6) public benefit charge. The minimum monthly charge shall be equal to the sum of the customer charge, the distribution charge, and the grid access charge.

C. Power Factor Penalty and Discount.

1. Existing Loads: If a customer's load operates at a power factor of less than 75 percent, PWP may require installation of equipment to correct the power factor to 75 percent or better. A penalty of one percent of the distribution charge for each percent the average monthly power factor falls below 75 percent shall be added to the distribution charge.
14 2. A customer having a maximum demand of 50 kW or more shall be allowed a discount on the distribution charge of 0.333 percent for each percent the average monthly power factor exceeds 85 percent. The discount shall not exceed 5 percent. The power factor shall be computed to the nearest one percent. The discount shall be computed to the nearest one-tenth of one percent.

3. New Loads: On or after July 1, 2002, if a customer's load operates at a power factor of less than 85 percent, PWP may require installation of equipment to correct the power factor to 85 percent or better. A penalty of one percent of the distribution charge for each percent the average monthly power factor falls below 85 percent shall be added to the distribution charge.

4. A customer having a maximum demand of 50 kW or more shall be allowed a discount on the distribution charge of 0.333 percent for each percent the average monthly power factor exceeds 85 percent. The discount shall not exceed 5 percent. The power factor shall be computed to the nearest one percent. The discount shall be computed to the nearest one-tenth of one percent."
SECTION 13. Title 13, Chapter 13.04, Section 13.04.070 of the Pasadena Municipal Code is hereby repealed in its entirety and replaced with a new Section

13.04.070 to read as follows:
"13.04.070 Extra-large commercial and institutional service—primary (Schedule L-3)
The terms and conditions of services hereunder shall be provided by Schedule L- 3, as found in the Electric Utility Rate Resolution.

A. Applicability. Applies to customers with one or more dedicated circuit(s), including power and lighting, and aggregate demand of 10MW measured with demand meter. Applies to customers that meet or exceed 10 MW aggregate demand or greater in one month of the prior 12-month period.

B. Customer shall pay the sum of the following charges (1) customer charge, (2) distribution charge, (3) grid access charge, (4) transmission services charge, and (5) public benefit charge. The minimum monthly charge shall be equal to the sum of the customer charge, the distribution charge, and the grid access charge. The minimum monthly charge shall be equal to the sum of the customer charge, the distribution 15 charge under Schedule L-3, and the grid access charge. The customer shall also pay the energy services charge (including PCA) if an alternative rate for energy services is not established through an approved long-term contract pursuant to section 13.04.075.

C. Power Factor Penalty and Discount.

1. If a customer's load operates at a power factor of less than 85 percent, PWP may require installation of equipment to correct the power factor to 85 percent or better. A penalty of one percent of the distribution charge for each percent the average monthly power factor falls below 85 percent shall be added to the distribution charge.

2. A customer having a maximum demand of 50 kW or more shall be allowed a discount on the distribution charge of 0.333 percent for each percent the average monthly power factor exceeds 85 percent. The discount shall not exceed 5 percent. The power factor shall be computed to the nearest one percent. The discount shall be computed to the nearest one-tenth of one percent."
SECTION 14. Title 13, Chapter 13.04, Section 13.04.071 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.071 Special load management and conservation service The special load management and consen/ation service rate is an optional temporary rate that PWP may enter into with qualifying customers in order to:
encourage experimentation in load management and conservation programs within customer premises and allow evaluation of load management's effect on the power system; evaluate how best to accommodate the load impacts of new technologies on the power system; experiment with electricity rates and the timing of customer payments for TOU meters and other interconnection facilities in order to incentivize customers to shift their electric usage from on-peak to off-peak hours when system costs are lower; and/or reduce the power system's aggregate on-peak electricity demand.

A. PWP shall publish the temporary rate schedules listing the effective date, customer qualification requirements, and all relevant terms.

B. Customer shall make application to PWP to take service under any rates schedule offered under this section. All applications meeting the published requirements 16 shall be accepted in the order of receipt by PWP, subject to the limitations in subsection (E) of this section.

C. Said temporary special rate agreements and/or rate schedules may be cancelled by PWP, at any time, on notice to the customer, but in no event shall be in effect for a period exceeding thirty-six (36) months.

D. The energy sales under this section shall be limited to three percent of the total system energy sales in megawatt-hours, as reported in PWP's most recent annual report. Each customer group shall be allocated a percentage of the energy sales based on the customer group's contribution to the total system energy sales.

E. Each participating customer shall be limited to ten percent of the energy sales within its customer group."
SECTION 15. Title 13, Chapter 13.04, Section 13.04.073 (Economic development rates.) of the Pasadena Municipal Code is hereby repealed in its entirety.

SECTION 16. Title 13, Chapter 13.04 of the Pasadena Municipal Code is hereby amended to add a new Section 13.04.074 to read as follows:
"13.04.074 Electric vehicle charging rates (Schedules EV-1, EV-2, EV-3, and City-owned retail charging stations)
The Electric Vehicle (EV) rate is an optional rate designed to encourage EV adoption and support clean transportation. The terms and conditions of services hereunder shall be provided by schedules EV-1, EV-2, and EV-3, and City-Owned Retail Charging Stations Applicability.

A. Electric vehicle charging below 30 kW (Schedule EV-1)

1. Applicability. Applies to stand-alone meters or similarly PWP approved metering technology for plug-in electric vehicles charging purposes and having a maximum demand of less than 30 kW.

2. Customer shall pay the sum of the following charges (1) customer charge, (2) grid access charge, and the applicable EV charges in accordance with the Electric Utility Rate Resolution. The minimum monthly charge shall be equal to the sum of the customer charge and the grid access charge.
17 3. Customers who meet low-income eligibility requirements including EUAP customers, as defined in Section 13.04.046, may receive discounted EV rates in accordance with the Electric Utility Rate Resolution.

B. Electric vehicle charging at or above 30 kW and less than 300 kW (Schedule EV-2)

1. Applicability. Applies to stand-alone meters or similarly PWP approved metering technology for plug-in electric vehicles charging purposes and having a maximum demand of greater than or equal to 30 kW and less than 300 kW.

2. Customer shall pay the sum of the following charges (1) customer charge, (2) grid access charge, and the applicable EV charges in accordance with the Electric Utility Rate Resolution. The minimum monthly charge shall be equal to the sum of the customer charge and the grid access charge.

C. Electric vehicle charging at or above 300 kW (Schedule EV-3)

1. Applicability. Applies to stand-alone meters or similarly PWP approved metering technology for plug-in electric vehicles charging purposes and having a maximum demand of greater than or equal to 300 kW.

2. Customer shall pay the sum of the following charges (1) customer charge, (2) grid access charge, and the applicable EV charges in accordance with the Electric Utility Rate Resolution. The minimum monthly charge shall be equal to the sum of the customer charge and the grid access charge.

D. City-owned retail charging stations

1. Applicability. Applies to retail customers charging EVs at City-owned stations and shall pay in accordance with the Electric Utility Rate Resolution.

2. Customers who meet low-income eligibility requirements including EUAP customers, as defined in Section 13.04.046, may receive discounted EV rates in accordance with the Electric Utility Rate Resolution."
SECTION 17. Title 13, Chapter 13.04, Section 13.04.080 of the Pasadena Municipal Code is hereby repealed in its entirety and replaced with a new Section

13.04.080 to read as follows:
"13.04.080 Standby service (Schedule SBY)
18 The terms and conditions of services hereunder shall be provided by Schedule SBY, as found in the Electric Utility Rate Resolution.

A. Applicability. Applicable to customers who in part or in whole have their own generating equipment and who rely on the PWP grid in case of an on-site outage.

Standby service shall be furnished solely to the individual contracting customer. Applies to medium and large commercial customers. Character of service shall be three-phase 240, 480, 120/208 or 277/480 volt, 60 cycle alternating current service. Other voltages and types of sen/ice may be approved by the Department for certain specific installations.

B. Customer shall sign a contract for this service, which contract shall state the number of kW of standby capacity required. "Standby capacity" shall not exceed the nameplate rating of the customer's generating equipment.

C. Service connections shall be made so that at no time will the customer's generating equipment be connected to or operated in parallel with PWP's system.

Switching devices used for service connections shall be approved by PWP.

D. Customer shall pay the sum of the following charges (1) customer charge, (2) grid access charge, and (3) the reservation charge_ SECTION 18. Title 13, Chapter 13.04, Section 13.04.085 of the Pasadena Municipal Code is hereby repealed in its entirety and replaced with a new Section

13.04.085 to read as follows:
"13.04.085 Unmetered rates—non-demand below 30 kW (Schedule CE-1) The terms and conditions of services hereunder shall be provided by Schedule CE-1, non-demand, as found in the Electric Utility Rate Resolution.

A. Applicability. Applies to any unmetered telecommunications devices and other equipment with less than 30 kW demand where metering installations would be impractical, unavailable, uneconomical or restricted by the City.

B. Monthly energy consumption. PWP shall determine the monthly energy consumption by multiplying the number of hours in the billing period by the maximum hourly energy consumption of the unmetered equipment based on the manufacturer's specifications and operating characteristics. For the purpose of this schedule, monthly energy consumption shall be deemed to be the kWh delivered. 19 C. Customer shall pay the sum of the following charges (1) customer charge for either (a) single-phase service or (b) three-phase service. (2) distribution charge, (3) grid access charge, (4) energy services charge based on the monthly energy consumption, (5) transmission services charge, and (6) public benefit charge.

D. Customer shall be solely responsible to install, own, operate, and maintain all equipment. City shall not be responsible for any damage to customer's equipment under any circumstances.

E. Customer and PWP shall mutually agree upon each location for unmetered telecommunications devices and other equipment installations. Each location or connection shall be deemed a separate account.

F. Customer shall not increase connected load or change the character of telecommunications devices and other equipment without providing written prior notice to PWP of at least 30 days. Customer shall furnish PWP written notice of any change in the connection configuration, rated electrical load, or operating characteristics of such equipment. In event customer does not provide such written notice, PWP may estimate customer's actual energy use and back bill the customer.

G. From time to time, PWP may audit customer's equipment using a temporary meter. Customer's fixed electric rate shall be adjusted based upon the results of the audit. Customer shall provide City personnel with access to customer's equipment and provide assistance as necessary to complete the audit." SECTION 19. Title 13, Chapter 13.04, Section 13.04.087 of the Pasadena Municipal Code is hereby repealed in its entirety and replaced with a new Section

13.04.087 to read as follows:
"13.04.087 Unmetered rates—demand at or above 30 kW (Schedule CE-2) The terms and conditions of services hereunder shall be provided by Schedule CE-2, demand, as found in the Electric Utility Rate Resolution.

A. Applicability. Applies to any unmetered telecommunications devices and other equipment with 30 kW demand or greater, but less than 300 kW demand where metering installations would be impractical, unavailable, uneconomical or restricted by the City.

B. Billing Determinants.
20 1. Monthly Energy Consumption. PWP shall determine the monthly energy consumption by multiplying the number of hours in the billing period by the maximum hourly energy consumption of the unmetered equipment based on the manufacturer's specifications and operating characteristics. For the purpose of this schedule, monthly energy consumption shall be deemed to be the kWh delivered.

2. Monthly Billing Demand. PWP shall determine the monthly billing demand based on the maximum demand (kW) of the telecommunications devices and other equipment as set forth in the manufacturer's specifications.

3. Customer shall pay the sum of the (1) customer charge for either (a) single-phase service or (b) three-phase service. (2) distribution charge, (3) grid access charge, (4) energy services charge based on monthly energy consumption, and (5) transmission services charge.

4. Customer shall be solely responsible to install, own, operate, and maintain all equipment. City shall not be responsible for any damage to customer's equipment under any circumstances.

5. Customer and PWP shall mutually agree upon each location for unmetered telecommunications devices and other equipment installations. Each location or connection shall be deemed a separate account.

6. Customer shall not increase connected load or change the character of telecommunications devices and other equipment without providing written prior notice to PWP of at least 30 days. Customer shall furnish PWP written notice of any change in the connection configuration, rated electrical load, or operating characteristics of such equipment. In event customer does not provide such written notice, PWP may estimate customer's actual energy use and back bill the customer.

7. PWP may audit customer's equipment using a temporary meter.

Customer's fixed electric rate shall be adjusted based upon the results of the audit.

Customer shall provide City personnel with access to customer's equipment and provide assistance as necessary to complete the audit within seven calendar days of written request."
21 SECTION 20. Title 13, Chapter 13.04, Section 13.04.090 of the Pasadena Municipal Code is hereby repealed in its entirety and replaced with a new Section

13.04.090 to read as follows:
"13.04.090 Street lighting and traffic signal service (Schedule SL) The terms and conditions of services hereunder shall be provided by Schedule SL, as found in the Electric Utility Rate Resolution.

A. Applicability. Applies to outdoor street, highway and area lights and traffic signals, whether publicly or privately owned, where the poles, electrolier standards and lighting equipment are owned by the customer. For such lights as are burned from 30 minutes after sunset to 30 minutes before sunrise, 4140 hours of service per year will be used for cost calculation purposes.

B. Rate. Unmetered street lighting and signs not included in the flat rate section will be billed under the metered rate section using the hours of service per year set forth in subsection A. Unmetered load, including without limitation, traffic signals, street lighting, signs with extended hours of operation, bus shelters, and irrigation controllers will be billed under the metered rate section by extrapolating usage from a sample test metering period. All services covered under this section, whether billed under the flat rate or metered rate section shall be billed in accordance with the Electric Utility Rate Resolution."
SECTION 21. Title 13, Chapter 13.04, Section 13.04.100 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.100 Service regulations and charges
A. The general manager of the Department shall, from time to time, approve service regulations and procedures relating to conditions of service, application, administration and interpretation of rates, or to any other provision of this chapter; provided, however, that any proposed new or revised charges or fees for reconnections and for various special services not otherwise provided for in this chapter shall be effective upon adoption thereof by resolution of the City Council. No later than 30 days prior to the effective date of any amendments to such regulations, the proposed amendments shall be posted on PWP's website and the City Council shall be notified in writing of such proposed amendments.
22 B. On failure to comply with the service regulations of the Department, or to pay charges, or to comply with penalties imposed for such failure as herein provided, electric service may be turned off until the regulations, charges, or said penalties are complied with or payment is made of the amount due."
SECTION 22. Title 13, Chapter 13.04, Section 13.04.110 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.110 Meter and service installation
All meters and services shall be installed and located in accordance with specifications and drawings detailed in the Electrical Service Requirements Regulations set forth by PWP. In the event that meter and service connections are not so installed, the Department will delay making service connections to such premises until the service requirements are satisfied. Demand meters will be adjusted to measure the maximum integrated demand over a 15-minute interval, or if the demand is of an intermittent character, PWP may adjust the meters to measure the demand during a shorter interval.

All meters and services shall be installed and located in accordance with specifications and drawings detailed in the Electrical Service Requirements Regulations set forth by PWP. In the event that meter and service connections are not so installed, the Department will delay making service connections to such premises until the service requirements are satisfied. Demand meters will be adjusted to measure the maximum integrated demand over a 15-minute interval, or if the demand is of an intermittent character, PWP may adjust the meters to measure the demand during a shorter interval. Advanced Meters with Interval Read Capability will be the standard of installation, customers wishing to opt out are subject to fees as stated in the Electric Utility Rate Resolution.

Advanced Meters with Interval Read Capability will be the standard of installation, customers wishing to opt out are subject to fees as stated in the Electric Utility Rate Resolution."
SECTION 23. Title 13, Chapter 13.04, Section 13.04.120 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.120 Inspections
23 A. Entry on Premises. Department employees may enter private premises to make inspections or examinations of wires, fixtures or attachments, to read meters, or to determine if there has been unlawful tampering with department equipment, devices or seals, or unlawful installation of devices to evade department metering of energy.

Department employees whose duty it is to enter upon private premises will be provided with a badge or other identification. Such identification shall be shown to customer at the time of entry on customer's premises.

B. Interference with Authorized Employees. The general manager may discontinue service of electrical energy to any premises after written notice to the customer of his intent to do so, for the following causes:

1. The customer has refused admittance to an authorized employee, at a reasonable hour, in the performance of his duty; or

2. The customer, by his personal conduct, or by maintaining a dangerous condition or vicious animal upon the premises, has hindered or interfered with an authorized employee in the performance of his duty. The general manager shall serve such notice by mailing one copy to the customer at his last known address, and one copy to the premises, if a different address. The general manager need not reconnect the service until the customer has given satisfactory assurance to the general manager that an authorized employee will not be interfered with or hindered, or refused admittance, in the performance of his duty.

C. Access to electric meters at the customers facilities shall be provided at all times. If access to the customers meter is prohibited by a locking device on a gate, door or other access entries, customers shall provide PWP with a key to allow access by meter readers or other authorized personnel for the purpose of inspecting and/or maintaining and/or reading the meter. PWP is authorized to install at the customer's facility a lock box accessible only to PWP authorized personnel for the purpose of securing the key on site to gain ready access to the customer's electric meter.

D. PWP may inspect or test any power equipment and estimate or measure the demand, starting currents, power factor or other characteristics of such equipment to determine proper billing or compliance with the requirements of this chapter." 24 SECTION 24. Title 13, Chapter 13.04, Section 13.04.125 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.125 Private underground electric vaults
A. On reasonable notice, typically within five business days, the Department may enter upon private property to inspect, repair or replace any private underground electrical vault. It shall be the duty of the owner of a private underground vault to: (i) make the vault freely accessible to Department employees; (ii) maintain the vault in good repair free from water or other unsafe conditions; and (iii) comply with all state and local regulations applicable to underground electrical vaults. Any vault which fails to meet these requirements is hereby deemed a nuisance.

B. In event the condition of a private underground vault does not meet the requirements set forth in subsection A of this section, the Department may proceed with code enforcement proceedings pursuant to Chapters 1.24, 1.26 or 1.30 of the Pasadena Municipal Code. The Department may also, in its discretion, remediate the condition of any private underground vault. Prior to such remediation, the Department shall notify the vault owner of the problems to correct and the time for correcting them. If the problems are not timely corrected, the Department shall notify the vault owner of the Department's proposed solutions to the problems and the cost to complete them. The vault owner shall have the right to contest the Department's proposed action by filing an administrative appeal with the general manager of the Department not later than ten days from the date set forth on the Department's notice. In event an appeal is not timely taken, the Department's proposed action shall be the final administrative decision and no resort to the courts may be taken therefrom due to failure to exhaust remedies.

C. All costs of remediating the condition of a private electrical vault shall be the responsibility of the vault owner. Such costs shall be billed to the vault owner according to the normal billing procedures and requirements applicable to customers. In event the vault owner does not timely pay in full, the Department may exercise any remedies available to it under this code or other law, including shut-off of electrical service to the premises served by the private underground vault. Costs incurred by the Department in remediating the condition of a private underground vault shall also be 25 recoverable in any proceeding brought pursuant to Chapters 1.24, 1.26 or 1.30 of the Pasadena Municipal Code."
SECTION 25. Title 13, Chapter 13.04, Section 13.04.130 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.130 City not liable for damages relating to delivery failures The City is not liable for any damage to persons or property caused in any manner by the use or application of electric current, nor is it liable for any damage caused by its failure to deliver current, proper voltage or frequency, all or part of three- phase current, or electrical energy for any length of time." SECTION 26. Title 13, Chapter 13.04, Section 13.04.140 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.140 Financial responsibility—Delinquency penalty A. Customer Liability. The customer is responsible for and shall pay the City for all electrical energy delivered to the premises as registered on the City meter. The meter bill is due and payable when rendered and is delinquent 21 days after the date rendered. If delinquent bills for any electrical service are not paid upon presentation, such service may be discontinued without further notice. In addition, there shall be a penalty assessment for delinquent bills pursuant to Section 1.08.080. The amount of such penalty shall be as set forth on the general fee schedule.

B. Responsibility for Schedule. It is the responsibility of the customer to determine that he is being served under the proper schedule. In the event the customer feels he is not being so served, he shall file with the Department a written statement, stating the reasons therefor. The Department shall then promptly make an investigation and shall inform the customer in writing of its conclusions, and shall adjust the rate or not, accordingly. Department is not liable for excess charges to customer prior to the time customer files the written statement.

C. Deposits. The general manager of the Department may require a deposit in reasonable amount to guarantee payment for electrical energy to be used subsequent to date of demand for such deposit. If any customer fails to make such deposit after demand therefor, electrical service may be discontinued until the deposit required has been made.
26 D. Reconnection Charge. If electrical service is disconnected for nonpayment of bills, nonpayment of required deposit, by customer request or because of interference with authorized employees of PWP, the appropriate reconnection and special service charges, in addition to all previously accrued charges, shall be made prior to reconnection of service."
SECTION 27. Title 13, Chapter 13.04, Section 13.04.150 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.150 Rate schedule changes
A customer qualifying for a particular rate schedule will not be transferred to another rate schedule because of temporary or seasonal conditions for the purpose of reducing the minimum or energy charges. Unless there is a major change in the customer's type of load, a particular rate will continue in effect for at least 12 months except upon the adoption of Interval Read Capable Meters for billing, at which time customer may be automatically enrolled in the Time-of-Use rates. If a major change in type of load occurs in less than 12 months, the Department may charge and collect for each meter affected."
SECTION 28. Title 13, Chapter 13.04, Section 13.04.160 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.160 Meter readings combined
The Department will not ordinarily combine meter readings for billing purposes.

However, in the event a consumer has brought out all his electric leads to a central and convenient location and more than one meter of a given class is deemed necessary by the Department, the Department may combine the readings of such meters for billing purposes."
SECTION 29. Title 13, Chapter 13.04, Section 13.04.170 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.170 Transmission services charge
A. The transmission services charge (TSC) is designed to capture the transmission revenue requirement (TRR) and net cost savings from joining participating transmission owner (PTO) with California Independent System Operator (CAISO) as defined in subsection (C)(4) of this section and shall be based on actual data obtained 27 from the City's accounting system, forecast data obtained from the annual budget approved by the City Council, and updated forecast data prepared monthly by PWP.

B. PWP shall calculate the TSC on an as needed basis and shall remain in effect for no less than three months.

C. For purposes of this section, the following definitions apply:

1. Net cost savings from being a participating transmission owner with California Independent System Operator (NCS PTO CAISO) means all PTO revenues received from CAISO, including, but not limited to, PTO TRR, net firm transmission right revenues, and high voltage wheeling revenues less all expenses paid to CAISO including, but not limited to, transmission access charges (TAG) and grid-management charges. NCS PTO CAISO shall be subject to an adjustment by CAISO transmission revenue balancing adjustment account.

2. Transmission revenue requirement is the sum of all costs related to the high- voltage transmission of energy, including, but not limited to, all transmission contracts, wheeling fees, pertinent labor and operating costs, associated general fund transfer, operating margin, debt service, and Independent System Operator access fees, less the sum of all wholesale revenues received in connection with the sale of any transmission entitlements.

D. The transmission services charge shall be calculated as follows:

1. Commencing July 1 , 2002, a TSC account shall be maintained for balancing costs and revenues associated with high-voltage transmission and related services. Any TAG over collection or under collection existing on July 1, 2002 shall be maintained in the TSC account balance.

2. The TSC account balance shall be calculated as the sum of actual revenues from the TSC less the actual TRR plus NCS PTO CAISO.

3. The transmission services charge shall be calculated based on the forecasts for the following twelve months for TRR, NCS PTO CAISO, system energy sales, and the TSC balance as follows:

FTRR Forecast - NCS PTO CAISO Forecast - TSC Balance]
[System Energy Sales Forecast]
28 i

4. The TSC shall be calculated and rounded to the nearest mill per kilowatt- hour.

5. The transmission services charge for customers whose service are metered and delivered at 4 kV or higher shall be reduced by $ 0.00019 per kWh." SECTION 30. Title 13, Chapter 13.04, Section 13.04.173 of the Pasadena Municipal Code is hereby repealed in its entirety and replaced with a new Section

13.04.173 to read as follows:
"13.04.173 Power cost adjustment (PCA)
A. A PCA shall be added to the energy services charge set forth in the Electric Utility Rate Resolution. Each customer shall pay the applicable energy services charge plus a PCA for each kWh delivered to the customer.

B. The PCA shall be based on actual data obtained from the City's accounting system, forecast data obtained from the annual operational budget approved by the City Council, and updated forecast data prepared as frequently as monthly by PWP.

C. PWP shall recalculate the PCA as frequently as monthly, and the resulting values for these charges shall be implemented on the first day of the following month.

D. For purposes of this section, the following definitions apply:

1. "Energy costs" is the sum of all costs related to the procurement and generation of energy for delivery to Retail Customers, including, but not limited to,Power Production Costs and Purchased Power Costs, operating margin, debt service and the general fund transfer associated with these costs.

2. "Energy cost forecast" is the forecast of projected energy costs for the twelve months immediately following the last actual billing period.

3. "Energy services charge revenue forecast" is the forecast of projected energy services charge revenue for the twelve months immediately following the last actual billing period.

4. "Energy revenue credit" is a percentage of the wholesale net income used to reduce the energy charge. The energy revenue credit is 75% of the wholesale net income, when greater than zero.
29 5. "Energy revenue forecast" is the forecast of projected energy revenue credits for the twelve months immediately following the last actual billing period.

6. "Fuel costs" means the sum of the cost of fuel gas consumed, the cost of fuel oil consumed, and the cost of procuring, scheduling, testing and in-plant handling of that fuel gas and fuel oil. Fuel oil includes both residual fuel oil and distillate fuel oil.

7. "Retail Energy sales forecast" is the forecast of projected energy sales (in kilowatt-hours) to Customers for the twelve months immediately following the last actual billing period. This forecast shall be updated monthly by PWP.

8. "Power production costs" is the sum of all costs for the generation of electric energy at facilities owned and operated by PWP, including, but not limited to, Fuel Costs, labor, operating and maintenance expenses, materials, and emissions credits.

9. "Purchased power costs" is the cost of energy and ancillary services, including, but not limited to, capacity and energy charges from third parties and all non- transmission charges charged by the California Independent System Operator (ISO).

10. "System energy sales" means the estimated total energy sales delivered to all customers.

11. "Wholesale net income" means the sum of revenues realized from wholesale energy and ancillary service sales, less the associated production cost and purchased power cost attributable to the wholesale sales. [E—G. Reserved.]
H. The PCA shall be added to the energy service charge set forth in the service schedules, and shall be calculated monthly as follows:

1. Commencing July 1 , 2002, energy services account balance shall be maintained for balancing costs, revenues, and credits associated with energy delivered to retail customers.

2. The energy services charge shall be calculated based on the energy cost forecast, energy revenue credit forecast, retail service energy sales forecast, and the energy services charge account balance as follows:
30 fenergy cost forecast - enerqy revenue credit forecast - energy services charge account balance]
[retail energy sales forecast]

3. The PCA shall be calculated based on the twelve month forecast of energy services revenue, energy cost, energy revenue credit, retail energy sales, energy services charge account balance and account reserve levels as follows:
fenemv cost forecast - energy revenue credit forecast - enerav services charge account balance - enerav services revenue forecast + reserve levels]
[retail energy sales forecast]

4. The result of the formula shall be rounded to the nearest one thousandth per kilowatt-hour. This shall be the PCA to be implemented." SECTION 31. Title 13, Chapter 13.04, Section 13.04.178 of the Pasadena Municipal Code is hereby repealed in its entirety and replaced with a new Section

13.04.178 to read as follows:
"13.04.178 Self-generation service (Schedule SG)
To encourage the development of local renewable energy generation by customer-generators, self-generation service shall be as provided by Schedule SG as follows and as found in the Electric Utility Rate Resolution.

A. Applicability.

1. Applies to customers with self-generation or cogeneration not less than one megawatt capacity and billing demand not less than 300 kW.

2. Customers shall sign an interconnection and metering agreement with PWP.

3. This schedule will be applied to each meter at point of delivery or receipt, and in no event will meter readings be combined.

B. Self-generation service.

1. Rates for this service shall be the time-of-use rates under which the customer would ordinarily take service except, (1) in each month, billing demand will be the greater of the maximum 15 minute kW of the absolute net electricity delivered to customer during the current month or preceding 11 months and (2) in each month, the 31 billing determinant for the transmission services charge shall be the sum, over the hours of the month, of the hourly net power that the customer received from the PWP power system, but in no event less than zero for the month.

2. Customer shall receive a credit in an amount equal to the net electricity delivered to PWP multiplied by the applicable energy services charge.

3. Billing.
a. Customers shall receive a monthly or bi-monthly bill from PWP. Customers shall pay the outstanding balance, if any, owed to PWP. b. Credits shall be given to the customer in the form of offsets to charges on the customer's future electric bills. If, in any month, a customer's electric credits (including any credit carry-forwards from previous months exceed that customer's charges) the net credit will carry forward to the customer's bill for the following twelve months. Credits shall expire upon termination of electric service.

4. The customer shall be responsible to reimburse PWP for any and all upgrades to PWP's power system which are necessary due to the customer's generation, including, without limitation, metering equipment." SECTION 32. Title 13, Chapter 13.04, Section 13.04.179 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.179 Green power service (Schedule GP)
A. Applicability. The charges set forth in this schedule apply to those customers who choose green power service. By subscribing to green power service customers will accelerate the procurement and development of renewable energy resources by paying a green power premium which PWP will then apply to green power procurement on behalf of such customers. Customers choosing this service shall either select a 100% Green power service option or nominate the amount of green service in blocks of 100 kWh per month. All other rates and charges for electric services apply to these customers as specified in their otherwise applicable schedule. "Green power" as used in this section shall mean energy procured from an "Eligible renewable energy resource" as defined in California Public Utility Code Section 399.12(e) to serve customers that have selected Green power service.

I
32 B. Green Power Premium. The Green Power Premium shall be $0.018 per kWh of metered electricity use for customers choosing 100% Green power service, or, $1.80 per month for each 100 kWh block of green power nomination.

C. For customers enrolling after March 1, 2026, the Green Power Premium shall be established in the Electric Utility Rate Resolution as of the enrollment date. the value of portfolio content category one (PCC1) renewable energy credits (RECs) based on recent actual transactions by Pasadena Water and Power ($/MWh) D. Use of Green Power. Consistent with PWP's Renewable Portfolio Standard Procurement Plan and Enforcement Program, as may be amended from time to time, PWP shall account for energy procured on behalf of Green power service customers separately from that procured for non-Green power service customers.

E. The Green Power Premium shall not be included as gross income for purposes of calculating the light and power fund transfer under Section 1408 of the Charter."
SECTION 33. Title 13, Chapter 13.04, Section 13.04.180 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.180 Theft of energy
A. In applying for service the customer agrees that the department may install and maintain equipment on the customer's premises for the proper metering of energy and distribution of current to prevent the theft thereof. Any customer who tampers with department's equipment to avoid payment of the rates herein prescribed, or to reconnect service that has been disconnected by department, is liable to punishment therefor pursuant to law. Upon discovery of such tampering, the general manager may cause the service to be disconnected and remove all equipment installed by the department forthwith. If the premises is vacant or the equipment installed is no longer needed, such equipment may be removed at any time upon order of the general manager of the department.

B. Any person or agency apprehended using electricity without permission from a power line, electrical service, or other system connection will be charged for each occurrence as established by Electric Utility Rate Resolution of the City Council, 33 plus the cost of electricity estimated to have been used. Investigation costs may be added thereto at the option of the general manager."
SECTION 34. Title 13, Chapter 13.04, Section 13.04.190 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.190 Apparatus causing interference
The department may disconnect any service on its lines to which is connected any device or apparatus causing a distortion of the wave form of the voltage or current supplied, or generating or causing high frequency electrical radiation or other electrical disturbance, which interferes with radio or television broadcast reception or with other forms of communication, or with the operation of any of department's protection or control facilities. The owner of such device or apparatus shall have a reasonable time within which to repair, modify or adjust, or to agree to pay department's costs of devices, apparatus and installation, to prevent interference." SECTION 35. Title 13, Chapter 13.04, Section 13.04.200 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.200 Billing procedure
A. The rates established apply basically to monthly periods. The meter reading dates shall be determined by the Department and bills will be rendered monthly or bimonthly at the option of the department. Bimonthly bills will be computed by doubling the monthly energy block and the monthly customer or minimum charge. When service to a customer is initiated or terminated between regular meter reading dates for a particular premises, the bill will be prorated on a basis established by the general manager.

B. Notwithstanding anything in this chapter to the contrary, billing may be made and charges collected for service furnished hereunder to any customer at such times as the department considers to be in the best interests of the department and the customer so billed. Charges billed for a period of more than one month are made as though monthly meter readings had been taken and had shown equal use of service each month within the period and charges had been billed monthly thereon." SECTION 36. Title 13, Chapter 13.04, Section 13.04.210 of the Pasadena Municipal Code is hereby amended to read as follows:
34 ((
"13.04.210 - Gaseous lighting units
All vapor or discharge tube type lighting units, such as neon, argon and fluorescent lighting, shall include power factor corrective equipment so that the overall power factor shall not be less than 90%. All installations of corrective equipment rated at 250 volt-amperes or more shall be approved by the Department." SECTION 37. Title 13, Chapter 13.04, Section 13.04.220 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.220 Added load
Customers shall notify and secure approval of Department before adding any power load of 3 hp or appliance load of 3 KW or greater to an existing service." SECTION 38. Title 13, Chapter 13.04, Section 13.04.230 of the Pasadena Municipal Code is hereby amended to read as follows:
"13.04.230 Public benefit charge
A. Pursuant to the requirements of Section 385 of the Public Utilities Code of the state of California, there is established a nonbypassable, usage based public benefit charge on local distribution service for each kilowatt-hour delivered to the customer.

B. The Department shall recalculate the public benefit charge annually and the resulting value for this charge shall be automatically implemented on the first day of the following month.

C. For the purpose of calculating the public benefit charge, the following definitions shall apply:

1. "Public benefit cost" means expenditures pursuant to subsections (G)(1) through (G)(4), inclusive.

2. "Public benefit cost forecast" means the forecast of public benefit cost for the twelve months immediately following the last billing period.

3. "Public benefit fund balance" means the sum of alt prior revenues from the public benefit charge, less the sum of all prior public benefit cost and committed public benefit cost.

4. "Retail energy sales forecast" means the forecast of projected energy sales (in kilowatt-hours) to all electric customers taking service under this chapter for the twelve months immediately following the last billing period. 35 D. The public benefit charge shall be calculated based on the public benefit cost forecast, the public benefit fund balance, and the retail service energy sales forecast as follows: the public benefit cost forecast minus the public benefit fund balance, which sum shall be divided by the retail service energy sales forecast. The result shall be rounded to the nearest mill per kilowatt-hour.

E. In no event shall the public benefit charge be less than $0.00271 per kilowatt-hour.

F. Moneys collected through the public benefit charge will be used exclusively to fund investments in any or all of the following:

1. Cost-effective demand-side management services to promote energy efficiency, energy conservation, and electric demand reduction;

2. New investment or incentives to promote the installation and use of renewable energy resources and technologies consistent with existing statutes and regulations which promote those resources and technologies;

3. Research, development and demonstration programs for the public interest to advance science or technology which is not adequately provided by competitive and regulated markets; and

4. Services provided for low-income electricity customer, including but not limited to, targeted energy efficiency service and rate discounts.

G. This public benefit charge shall not be subject to any taxes or surcharges imposed pursuant to the Pasadena Municipal Code.

H. This public benefit charge shall not be included as gross income for purposes of calculating the light and power fund transfer under Section 1408 of the Charter."
SECTION 39. The City Clerk shall certify the adoption of this ordinance and shall cause this ordinance to be published in full text.

SECTION 40. This ordinance shall take effect upon its publication.

Signed and approved this _ day of March, 2026.
36 Victor M. Gordo
Mayor of the City of Pasadena
I HEREBY CERTIFY that the foregoing ordinance was adopted by the City Council of the City of Pasadena at its meeting held this _ day of March, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Date Published:

Mark Jomsky, CMC
City Clerk
Approved as to form:
y^y7
Lisa Hosey' " ~~^)
Assistant City Attorney"
37

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