Outlook
MSC 05.26.2026 Item 1-b PWP Operating Budget FY 2027
From
Date Tue 5/26/2026 12:15 PM
To Jones, Justin <[email protected]>,· Rick Cole <[email protected]>,· Hampton, Tyron Cc
<[email protected]>; Lyon, Jason <[email protected]> Gao, Beilei <[email protected]>; cityclerk <[email protected]> [A] CAUTION: This email was delivered from the Internet. Do not click links or open attachments unless you frnowthe content is safe. Report phish using the Phish Alert Button. For more information about the Phish Alert Button view article "KB0011474" on the DolT portal.
Dear Members of the Municipal Services Committee,
Although Power Fund Revenues for FY 2027 will reach a new record-high level at $349.4 million, the Power Fund CIP budget provided only token funding for Solar Generation and Battery Storage on Municipal Properties to be paid by the Public Benefit Charge, not the Power Fund. Yet the Power Fund FY27 Operating Budget includes an expense of $28.5 million for transfer to the General Fund. A note on SLIDE 9 "Budget-at-a-Glance" (pdf 36) states that retail revenues are up $30.2 million, 12.5% higher than FY26 due to "rate adjustments" - e.g. the April and October 2026 Electric Rate Increases.
Without this increase paid by ratepayers, total revenue for FY27 would have been approximately $319 million ($349M - $30M), $6 million above the previous record-high revenue of $313 million in FY25. The proposed General Fund Transfer of $28.5 million consumes almost all the $30 million retail revenue increase paid by ratepayers but would be spent on miscellaneous "enhancement requests" unrelated to electric service. At the City Council meeting on May 4th, PWP stated again that it reinvests in its services.
This is an opportunity for the City to demonstrate its commitment to Resolution 9977, provide reliable locally generated solar power supported by municipal battery storage and to be proactive in the face of our growing climate crisis. It is also an opportunity for Pasadena Water and Power to demonstrate its commitment to reinvesting in services for present and future generations.
Timing is critical for expedited planning and construction of city-owned solar/storage.
Local solar generation and battery storage on city properties will benefit all residents of Pasadena. The City Charter, Chapter XIV, Section 1408 states that "if City Council...shall determine that an amount of less than 12% from the Light and Power Fund ...would not be detrimental...during the budget year under consideration, Council may so declare by resolution, and shall transfer a smaller amount."
Please recommend to City Council that the city and PWP repurpose the proposed $28.5 million General Transfer (GFT) to provide FY 2027 capital funds for Solar Generation and Battery Storage on Municipal Properties.
Sincerely,
Genette Foster, CD 2