Pasadena Water and Power
Pasadena Water & Power
Council Priorities and Policy
Previously adopted plans and policies
remain in effect
2025 priorities complement—not
replace—existing direction
CIP reflects cumulative Council
Policy/Priorities over time
Balancing
Competing
Objectives
Carbon-free energy goals
Long-term fiscal sustainability
Affordability
Regulatory Framework
Rate equity
System reliability
Integrated
Resource
Plan (IRP)
Approved Dec 2018; filed with California
Energy Commission
Defines long-term power supply strategy
Aligns with state greenhouse gas reduction
targets
Balances cost, reliability, and sustainability
Only purchase Carbon free resources – opt
out of the Intermountain Power Project
Power
Delivery
Master
Plan
Adopted by City Council
June 12, 2022
Long-term infrastructure
planning document
Guides reliability, safety, and
capital investments
Supports grid modernization
and resilience
Resolution 9977
City Council adopted Resolution 1/30/2023
Goal: 100% carbon-free electricity by 2030
Affordability;
Rate equity;
Stability; and
Reliability of electricity
Integrated
Resource
Plan (IRP)
Approved Dec
2023; filed with
California Energy
Commission
Optimized Strategic Plan (OSP)
Adopted
December 2025
Implementation
roadmap for
Resolution 9977
Identifies resource
mix and
investment
strategy
Integrates financial
and operational
considerations
Capital Improvement Program
(CIP) Alignment
Reflects adopted
policies and plans
Prioritizes projects
advancing Council
goals
Ensures fiscal
discipline
Aligns
infrastructure with
sustainability
targets
$20M funded for
solar
• Additional $7.6
proposed
$27.6M funded
solar
CIP Furthers Council Priorities, But
NOT ALONE
HQ: About
Consolidation of
Offsite Leases (PWP
or PWP + City)
Future Solar: $600K
to Feasibility Study
City Not Alone:
PUSD, PCC, PCOC,
RBOC
Operating Budget
PPAs
Priorities and Policies Set by
Council
Policies are cumulative
and reinforcing
PWP budget and
policies operate within
full Council direction –
City Manager directs
day to day
CIP reflects both legacy
and new priorities
Strategic alignment
ensures long-term
success
PWP Capital Program FY27 – 31
Overview
Carbon-Free
Council has made this clear:
100% carbon-free by 2030 is
the policy direction. PWP
heard this loud and clear. This
CIP dedicates nearly $800
million toward carbon-free
infrastructure over five years.
Long-Term
Sustainability
Smart capital decisions today
protect rate affordability,
preserve credit quality, and
keep PWP financially strong
for the next generation of
customers.
Serving Our Community
Reliable water and power,
resilient infrastructure, and
equitable service for every
Pasadena customer -- today and
for decades to come.
One of the largest capital programs in PWP history - approximately $1.9 billion over five years – investing in water and power services for the next 100 years.
Department-Wide Key Initiatives
Pasadena Water and Power
Technology Transformation
> Advanced
Metering
Infrastructure
to enable
distributed
energy
deployment
Electrical Reinvention & Renewal
> Carbon-Free
infrastructure
> Sub-transmission
upgrades
> Distribution
system hardening
to mitigate risk
Water Reinvestment
> Sunset Reservoir
> Mainline
replacements
> Water supply
diversification and
enhancement
13 Pasadena Water and Power
Capital Investment Driving
Increase Revenue Needs
Strategies to keep
services affordable all
balanced in the
proposed plan
Debt
Funding
Grant
Funding
Control
Costs
$16 $18 $20 $19 $22
$32
$70
$96 $92
$53 $47
$120
$100
$80
$60
$40
$20
$0
Water Fund
in million $
$47
14 $38 $32 $35 $51
$114
$186
$224
$279 $271
$165
$300
$250
$200
$150
$100
$50
$0
Power Fund
in million $
Pasadena Water and Power
FY2027 Overview Water
15 30
Active Projects
5 NEW projects
$59.1M
Recommended for FY2027
Appropriation of $70.4 M
Workplan
39 Active and Future Projects with
Total Estimated Cost of $359 M
Pasadena Water and Power
FY2027 Overview Electric System
63 Active Projects
2 NEW projects
$112.4M
Recommended for FY2027
Appropriation of $186 M
Workplan
69 Active and Future Projects with
Total Estimated Cost of $1.5B
16 Carbon-Free Investment Strategy:
Balancing Fiscal Responsibility with Policy
• Added $90M project for 4-phase
Municipally-Owned Solar Project
• Leveraging Public Benefit Funding Fund
Balance for Eligible Solar Capital
• Plan does not assume any further rate
increases
$794M
Total Carbon-Free
Investment
40 Projects Advancing
the Carbon-Free Goal
$82.5M
Carbon-Free Investment in
FY2027
17 FY 2027 Recommended CIP Budget
18 Water Accomplishments in FY 2026
5 Completed Construction/Installations
Pipeline on Fair Oaks and Oak Knoll
Repaired damages to the Allen Reservoir
following the Eaton Fire
Explorer Well below-grade improvements
44 customer development projects &
1,400 meters
Near-term improvements for the Arroyo
Seco Canyon Project (ASCP) Area 1
Public review of the Environmental Impact
report for the Sunset Complex project
Completed Design Efforts
Explorer Well above-grade
improvements
Don Benito reservoir conceptual
design
ASCP Area 1
Oak Knoll Pipeline Project
FY 2027 Water CIP Budget Overview
> Five new CIPs proposed in FY 2027
> FY 2028 – FY 2031 Expenditures: $288.7 million includes 9 future projects Category # of Projects FY2027
Recommended
Appropriations
FY2027
Workplan
Distribution 8 $18.8 $19.2
Supply 6 $15.0 $16.1
Technology 7 $11.4 $12.4
Storage 4 $ 9.0 $17.7
Facilities & Services 5 $ 4.9 $ 5.1
Total 30 $59.1 $70.4
Water Projects Recommended for Funding
($ in millions)
20 Pasadena Water and Power
FY 2027 Water CIP Funding Sources
Total $70.4 million
Note: Water Revenue Debt = WIFIA Loan; $65M Bond Issuance in FY 2027 Ratepayer Funds (Cash),
31.5, 45%
Water Bond (Debt), 9.8,
14%
Water Revenue (Debt),
11.6, 16%
Reimbursements, Other ,
6.4, 9%
System Development
Charges (Customer
Funded), 2, 3%
Grants, 9.1, 13%
21 Five-Year Capital Plan Summary
Water Fund Projects
Pasadena Water and Power
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Facility & Services $5.1 $16.6 $4.9 $1.1 $1.0
Technology $12.4 $11.0 $6.4 $1.2 $0.9
Supply $16.1 $4.8 $7.2 $20.2 $25.3
Storage $17.7 $39.2 $51.7 $7.3 $0.9
Distribution $19.2 $24.5 $21.9 $23.4 $19.1
Total $70.4 $96.2 $92.2 $53.1 $47.2
$70.4
$96.2 $92.2
$53.1
$47.2
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0in millions
22 Five-Year Water CIP Funding Sources
Pasadena Water and Power
Water System CIP Funding Sources = $359.1 million
$70.4 $96.2 $92.2 $53.1 $47.2
Note: Unidentified Fundingfor CIP 1013 - Water Reuse Project Ratepayer Funds,
$31.5 Ratepayer Funds,
$35.9
Ratepayer Funds,
$19.3
Ratepayer
Funds, $26.6 Ratepayer
Funds, $19.2
Water
Revenue Debt,
$11.6
Water Revenue
Debt, $27.1
Water
Revenue Debt,
$29.9
Water
Revenue Debt,
$6.9
Water Revenue
Debt, $6.9
Water Bond, $9.8
Water Bond, $25.7
Water Bond, $29.5
System Development Charges, $2.0
S
System Development Charges, $2.0
System DevelopmentCharges, $2.0
System Development
Charges, $2.0
Grants, $9.1
Grants, $5.4
ystem Development Charges, $2.0
Grants, $6.7
Grants, $6.1
Grants, $5.1
Reimbursements-
Other, $6.4
Reimbursements-
Other, $4.8
Reimbursements-
Other, $5.0
Unidentified
Funding, $6.5
Unidentified
Funding, $14.0
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
23 100% of annual funding
Pasadena Water and Power
New CIP Projects - Water System
Don Benito Reservoir
• Replaces the water reservoir/tanks
damaged by the 2025 Eaton
windstorm and wildfire
*Removed from CIP 1098 – Eaton Windstorm and Fire
Recovery project
Water Facility Security Improvements
• Upgrades to security systems across
all water facilities
Five Proposed New Projects = $4.7 million in FY 27 Appropriations 24 24
Pasadena Water and Power
New CIP Projects - Water System
Improving reliability, efficiency, fire protection, and water quality though the upgrades to the following booster station projects:
• Atlanta Booster Station
• Eagle Rock Booster Station
• Santa Anita Booster Station
25 25
Pasadena Water and Power
Water System Highlight:
Water Storage Project
Sunset Complex Project
ProposedExisting
Improves overall system reliability and resilience
Work includes construction of reservoirs, a new treatment facility, booster station, façade improvements, well improvements, and other site enhancements. • FY 2027 Workplan: The City Yard will be upgraded, specification for construction contract, and construction planned to begin Project includes
solar generation on
the site
26 Pasadena Water and Power
Water System Highlights:
Water Distribution Projects
Atlanta, Eagle Rock,
and Santa Anita Booster
Station Improvements
Water Mainline Replacements
Installation of new and replaced water distribution
mains at various locations throughout the city
• FY 2027 Workplan: Design and replacement of
mainlines on the following locations:
• CatalinaAve - from Corson St to California Blvd
• Holly St - from Fair Oaks Ave to MarengoAve
• Colorado Blvd - from Melrose Ave to Patrician
Way
Improvements offer greater operating
reliability and efficiencies, and enhances
fire protection and water quality
• FY 2027 Workplan: Completion of
upgrade design and construction to
start on Eagle Rock and Santa Anita
Booster Stations, and design to start
on Atlanta Booster Station
27 Pasadena Water and Power
Water System Highlights:
Water Supply Projects
Arroyo Seco Canyon Project: Increase Groundwater Recharge Increased spreading of water runoff,
habitat restoration, and improvements
in the Arroyo Seco Canyon area
• FY 2027 Work Plan: Construction to
begin for Area 1 (Headworks), Area 2
(Intake), and Area 3 (Spreading
Basins)
Development of advanced water treatment for
groundwater recharge and irrigation use
• FY 2027 Work Plan: Ongoing multi-agency
collaboration on advancing project development
and preparing a comprehensive feasibility study
Water Reuse
28 FY 2027 Recommended CIP Budget
29 Accomplishments in FY 2026
30 Released
construction
bid
specification
for 25 MW
Glenarm
Energy
Storage
System
Issued a
Request for
Proposal for
a Micro
Wind
Turbine pilot
project
Replaced
or Installed
•39 distribution
switches
•165 distribution
transformers
•147 power poles
•21.5 miles of
conductor
•87 underground vaults,
pull boxes and
structure covers
•High
voltage/substructure in
Tier 3 Fire Threat area
•Canyon Close Rd., Fox
Ridge Dr., Florcita Dr.,
and Crestford Dr.
Upgraded the
subtransmission
circuit between
Oak Knoll
and Glenarm
substations
Customer
funded new
or
upgraded
projects
• 550 electric
services
• 305 solar meters
• 19 new private
property vaults
Pasadena Water and Power
FY 2027 Electric CIP Overview
Power Projects Recommended for Funding
> Two new CIPs proposed in FY 2027
> FY 2028 – FY 2031 Expenditures: $938.5 million includes 6 future projects Includes installations of 20MW community-owned solar in 4 phases (4 CIPs) Category
Number of
Projects
FY 2027
Recommended
Appropriations
FY 2027
Expenditures
Distribution Systems 41 $89.9 $139.8
Generation/Supply 13 $4.9 $22.9
Technology 7 $13.3 $19.0
Facilities & Services 2 $4.4 $4.4
Total 63 $112.4 $186.0
($ in millions)
31 Pasadena Water and Power
FY 2027 Electric CIP Funding Sources
Power System CIP Funding Sources = $186.0 million
Underground Fund, 1
Grants, 9.7
System Development
Charge (Customer
Funded), 7.5
Ratepayer Funds, 167.9
Public Benefit Fund, 4.4
Low Carbon Fuel
Standards, 0.8
Funding
32 Pasadena Water and Power
Five-Year Capital Plan Summary:
Power Fund Projects
FY 2027 FY 2028 FY2029 FY2030 FY2031
Distribution 139.8 75.6 109.4 126.8 159.1
Supply/Generation 22.9 105.1 151.2 139.9 1.4
Technology 19 14.6 8.7 1.7 1.7
Facilities and Services 4.4 28.7 9.2 2.8 2.7
0 50
100
150
200
250
300
Facilities and Services Technology Supply/Generation Distribution 33 Five-Year Power CIP Funding Sources
Note: Approx. $280M bond issuance planned in FY 2028
Pasadena Water and Power
Power System CIP Funding Sources = $1.13 billion
Ratepayer Funds,
$168.9
Ratepayer Funds,
$69.9
Ratepayer
Funds, $30.5 Ratepayer Funds,
$14.3
Ratepayer Funds,
$13.5
Electric Bond,
$100.3
Electric
Bond, $83.0 Electric Bond,
$77.5
Electric Bond,
$121.6
System Development
Charges, $7.5
System Development
Charges, $8.1
System Development
Charges, $7.4
System Development
Charges, $6.8
System Development
Charges, $6.5
Grants, $9.7
Unidentified
Funding, $45.7
Unidentified
Funding,
$157.6
Unidentified
Funding,
$172.5
Unidentified
Funding, $23.3
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
$186.0 $224.0 $278.5 $271.1 $164.9
34 100% of annual funding
Pasadena Water and Power
New CIP Projects: Electric System
Installation of Municipal-Owned Solar (2 MW by FY 28)
Installs local solar generation on City-owned propertiesacross Pasadena - Increases renewable generation capacity
- Supports Pasadena’s carbon-free goal
Power Integrated Resource Plan 2028 (Total CIP $1.55M)
A long-term, strategic roadmap to meet future energy demands reliably, affordably,and sustainably
- Ensures safe, dependable, and cost-effective power supply for customers - Plan for supply (new generation, transmission) and demand-side alternatives - Mandated by State Legislation SB 350
$4.4 million
Two Proposed New Projects = $4.5 million in FY 2027 Appropriations $0.1 million
35 Pasadena Water and Power
Power Delivery Highlights
• Path 2 Subtransmission Upgrade
Subtransmission Upgrades
• Avon Ramp
• City Yards
• Del Mar Garage
• Arroyo EV Charging Depot Phase 2
• Aquatics Center
• Rose Bowl Golf Course
Electric Vehicle Charging Infrastructure
New in
FY 2027
36 Pasadena Water and Power
Power Supply Highlight
• Construction and installation of a 25
MW of 4-hour battery storage system
at the Glenarm Power Plant
• FY 2027 Work Plan: Construction
and installation (Commercial
Operation Date in Spring 2027)
Broadway Energy StorageGlenarm Energy Storage
• Demolition of the Broadway Plant and
construction and installation of energy
storage systems
• FY 2027 Work Plan: Planning, site
preparation, and permitting will
continue
Energy Storage Systems
Enhance grid resiliency and efficiency,and provide equitable access to energy 37 Pasadena Water and Power
Department-Wide Technology
Highlight
FY 2027 Work Plan: Deploy AMI meters and supporting infrastructure, implementing enterprise software, and establishing a communications network to enable organization- wide AMI rollout.
> Earlier detection of water leaks
> Improved customer service with real-time data
> Will support time-of-use rate power structures to encourage conservation and load- shifting
> Enable customers with solar panels, home batteries, or electric vehicles to make better decisions on how they manage their system
> Remote power connect/disconnect to reduce truck rolls Advanced Meter Infrastructure (AMI)
38 CHANGE FROM PRINTED BOOK : ALTERNATIVES
Capital Reallocation & Deferral
ACTION 1 — REALLOCATION 1
Water & Power Headquarters
Office Consolidation Planning (CIP #3285)
CURRENT (Published CIP)
FY 2027
$650,000
Purpose: Needs
assessment &
site identification —
HQ planning
→
RECOMMENDED — Redirect To
FY 2027
$650,000
Purpose: 4 MW
Solar (Phase 2)
Site identification
study
Rationale
HQ planning dollars ($650K) fund a needs assessment with no irreversible commitment until FY28 — deferring HQ planning by one budget cycle has minimal operational consequence.
The 4 MW solar phase ($18M total) is partially funded but lacks identified sites. A $650K FY27 site study keeps the program on schedule without issuing additional bond debt.
No net change to total debt.
HQ site identification is incorporated into the FY28 needs assessment process.
ACTION 2 — DEFERRAL & REALLOCATION 2
Fair Oaks & Brookside Substation Upgrades (CIP
#3267) to Allocate to Installation of 4 MW
Municipal-Owned Solar (CIP#TBD)
Fiscal Year Published CIP
(Power Bond)
Recommended
(Adjusted)
FY 2027 $4,961,000 $4,961,000
FY 2028 $11,500,000 $11,500,000
FY 2029 $22,500,000 $15,500,000
FY 2030 $22,500,000 $22,500,000
FY 2031 $11,500,000 $11,500,000
FY31+ (Deferred $7M) — $7,000,000
TOTAL PROJECT $75,009,000 $75,009,000
Rationale
Total project cost is unchanged at $75.0M — deferral is a cash-flow adjustment, not a scope reduction.
$7M in FY29 Power Bond capacity is deferred to FY31 and reclassified as 'unfunded / bond capacity TBD,' preserving debt service coverage ratio headroom in FY29.
FY27 design, FY28 manufacturing, and FY30 construction milestones are unaffected — the transformer lead time determines the critical path, not the FY29 cash draw.
Bond capacity will be identified and appropriated in the FY31 budget cycle when updated revenue and coverage projections are available. 39 Staff Recommendation: A Phased,
Optimized Capital Approach
Funding the right projects in the right sequence for durable, affordable carbon- free outcomes
PROCEED NOW
2 MW Solar — Fully funded, sites identified. Begin construction FY27. 4 MW Solar Funding Gap ($7M) — Close gap through PBC FY26 retained earnings and reallocate from CIP 3267 Fair Oaks Project T.M. Goodrich Intertie — $65.2M; approved and appropriated. Critical gateway investment.
AMI Deployment — Accelerate rollout through FY29. No substitutes for this backbone.
Chester, Villa, Oak Knoll, Wilson, Hastings Substations —All funded or pending bond; supports Res. 9977.
Broadway & Glenarm Energy Storage — Funded near-term phases on track.
DEVELOP AN IMPLEMENTATION PLAN FIRST
6 MW Solar ($27M unfunded) — Identify sites, complete cost-benefit, determine funding source in next rate review. 8 MW Solar ($36M unfunded) — Same process; evaluate vs. emerging baseload alternatives before committing.
Subtransmission 35kV ($9.1M) — Prioritize in FY28 budget cycle with funding source identification.
Emerging New Technology ($42.5M FY29–30) — Proceed based on FY27 pilot results; do not pre-commit.
LONG-HORIZON PLANNING
Broadway Energy Storage ($165M+ beyond FY31) — Model in next IRP cycle; evaluate future bond capacity.
Evaluate long-duration storage, customer adoption, and advanced baseload technologies before final solar phase commitments. 40 Pasadena Water and Power
FY 2027 Recommended CIP Budget
41 Pasadena Water and Power
FY 2027 Electric Undergrounding
CIP Budget Overview
Undergrounding Projects Recommended for Funding
> No new CIPs proposed in FY 2027
> FY 2028 – FY 2031 Expenditures: $19.1 million
# of FY 2027 Recommended
Project Name Projects Appropriations Expenditures FY 2027 Workplan Raymond Avenue 1 $12,570,000 $17,200,000
Civil construction work and
underground electrical
system construction will
continue
Mountain Street 1 $0 $0
No work scheduled in FY 2027. It
is expected that undergrounding
efforts will begin in FY 2029
Outside
Established
Districts
1 $0 $16,000
Provides reimbursement for
underground services outside
of established districts
Total 3 $12,570,000 $17,216,000
*Additional Public Works expendituresnot shown.
42 Pasadena Water and Power
$17.216
$10.086
$3.016 $3.016 $3.016
$0.000 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Outside District $0.016 $0.016 $0.016 $0.016 $0.016
Mountain Street $0.000 $0.000 $3.000 $3.000 $3.000
Raymond Ave. $17.200 $10.070 $0.000 $0.000 $0.000
Total $17.216 $10.086 $3.016 $3.016 $3.016
$20.000
$18.000
$16.000
$14.000
$12.000
$10.000
$8.000
$6.000
$4.000
$2.000
in millions
Five-Year Capital Plan Summary:
Undergrounding Projects
$36.4 Million Planned Expenditures
*Additional Public Works expendituresnot shown.
43