Water and Power

Pasadena Water and Power (PWP) is committed to providing safe and reliable water and power with superior customer service at reasonable rates.

 

PWP, a department of the City of Pasadena, is a community-owned utility that supplies water and electricity to Pasadena and nearby areas with priorities that include the following:

• Providing the highest quality water and electric services at competitive rates;
• Promoting energy efficiency and water conservation through extensive public outreach, education, and incentive programs; and
• Supporting the City’s environmental goals to secure sustainable resources and reduce the environmental impacts of water production and power generation.

 

Ensure Public Safety

 

Safe and reliable drinking water and power services are essential to public safety. PWP continues its commitment to delivering high quality and safe drinking water by monitoring, sampling, and testing in accordance with all applicable laws and regulations. The 2020 Water System and Resources Plan (WSRP) is a 25-year strategic plan that integrates investments for sustainable water resources with the infrastructure necessary to ensure high quality water service for current and future needs of its water customers.

 

Similarly, the 2022 Power Delivery Master Plan (PDMP) outlines ongoing upgrades and improvements that ensure the safety and reliability of the underground and overhead electrical infrastructure. The PDMP includes an increased focus on the replacement of aging infrastructure to mitigate safety and reliability risks. PWP also complies with the reliability standards of the North American Electric Reliability Corporation (NERC) and earned the American Public Power Association’s (APPA) Reliable Public Power Provider RP3 “Diamond” designation for providing the highest degree of safe and reliable electric services.

 

PWP has implemented an Electric Distribution System Inspection Program that is consistent with California Public Utilities Commission Order 165. This program further ensures safety for employees and the public, enhancing the power distribution system's reliability and useful life.

 

PWP continues to focus on improving emergency response capabilities and customer communication throughout the utility via new disaster preparedness plans and technology investments.

 

Improve, Maintain, and Enhance Public Facilities and Infrastructure

 

PWP builds, maintains, and operates necessary infrastructure to produce, secure, and reliably deliver water and power to residents and businesses in Pasadena and to neighboring communities in its service territory. The WSRP and PDMP collectively guide investment in water and power systems. As the water and power infrastructure from pipes to poles continues to age, PWP proactively maintains and reinvests in the infrastructure core to its mission.

 

Maintain Fiscal Responsibility and Stability

 

PWP is committed to improving efficiencies and facilitating appropriate management decisions related to costs and fiscal discipline. Decision making tools are continually evaluated and improved to ensure that necessary information is always available. Historical trends and financial plans are continually employed to support necessary strategic changes. PWP continues to invest in renewable energy and sustainable water resources in an operationally and fiscally responsible manner and remains aligned with long-term goals.

 

Increase Conservation and Sustainability

 

PWP’s activities directly impact all City Climate Action Plan Strategies, including energy efficiency, renewable resources, Greenhouse Gas (GHG) emissions, water conservation, tree canopy, and clean vehicles. PWP offers a variety of programs and activities related to water conservation, demand management, and energy efficiency and robust community outreach is conducted regularly to engage customers in achieving common sustainability goals. 

PWP continues to implement the 2023 Integrated Resource Planning (IRP), which incorporates City Resolution 9977 which was adopted by the City Council in late 2023. The resolution declares a climate emergency in Pasadena and sets a goal to source 100% of Pasadena’s electricity from carbon-free sources by 2030 while optimizing for affordability, rate equity, stability, and reliability.

 

Support and Promote the Quality of Life and the Local Economy

 

Reliable and competitively priced water and electric services provide a core foundation that supports Pasadena’s quality of life and local economy. PWP’s focus on customer service and strategic marketing of its programs and services further supports these goals.

 

POWER DIVISION:

 

Resources

• Obtained City Council approval of a Power Purchase Agreement with Grace Orchard Solar Facility through Southern California Public Power Authority (SCPPA) for the purchase of 50 megawatts of solar energy over a 20-year contract term that will begin delivery in 2027;
• Began steps to design and construct a 25-megawatts Glenarm Battery Energy Storage System Project at the Glenarm Power Plant. Steps taken included:
• • Executing a contract based off of a comprehensive solicitation process in FY 2025 to procure design services and equipment for the construction of the Glenarm Battery Energy Storage System and obtained City Council approval to award the project;
  • Completing the environmental analysis under the California Environmental Quality Act (CEQA) review; and
  • Executing a $9.7 million matching grant agreement with the California Energy Commission for the development of the Glenarm BESS Project.
• Obtained City Council approval of a Power Purchase Agreement with Calwind Resources, Inc. that will provide 20 megawatts of wind energy starting in 2025, over a 10-year contract term;
• Executed a $60,000 grant agreement with the APPA for a microwind pilot project;
• Received two in-kind grant awards with ENERGYWERX to advance long-duration energy storage initiatives;
• Completed the Glenarm fountain walkway replacement project at the Glenarm Power Plant;
• Developed the Optimized Strategic Plan which will serve as a guide to implementing Pasadena’s accelerated clean energy goal of 100% carbon free electricity by the end of 2030;
• Launched the Clean Energy Tracker on PWP's website, which provides information on key clean energy targets and milestones, to further demonstrate PWP’s commitment towards 100% carbon-free electricity by the end of 2030;
• Achieved state-mandated Renewable Portfolio Standard (RPS) requirements through a combination of existing and new long- and short-term contracts and purchases forecasted to achieve 44% RPS for Calendar Year 2024, results of which will be subject to final verification of full 2021- 2024 Compliance Period by the California Energy Commission;
• Achieved the Resource Adequacy for California Independent System Operator (CAISO) capacity requirements; and
• Maintained regulatory compliance through various agency reporting requirements, including the California Air Resources Board, California Energy Commission, CAISO, Air Quality Management District, Environmental Protection Agency, and others.

 

Power System Reliability

• Maintained APPA’s prestigious RP3® “Diamond” designation for providing the highest degree of reliable and safe electric service;
• Awarded APPA’s Safety Awards of Excellence “Gold” designation for keeping safe operating practices;
• Maintained compliance with all applicable NERC, Western Electricity Coordinating Council (WECC), and CAISO standards and related requirements;
• Maintained exceptional electric service reliability despite experiencing all-time peak demand of 330MW in September 2024;
• Expeditiously repaired damages caused by the historic Eaton Fire and windstorm in January 2025 restoring power to affected customers within days;
• Continued Power Geographic Information System (GIS) maintenance and Circuit Map improvements;
• Expanded the fiber optic system on Glen Oaks Blvd. from Fairlawn Ave. to El Mirador Dr.;
• Completed a 10-year load forecast and continued a study for new large services and system changes;
• Completed protection, control, and metering upgrades for three 35 Kilovolt (kV) subtransmission lines;
• Completed installation of an oil containment system for Units 1 and 2 at Glenarm Substation, as well as the installation of a fire-rated wall between Santa Anita transformer Banks 4 and 5;
• Completed installation of a Dissolved Gas Analyzer unit for TM Goodrich Receiving Station Bank 1 Transformer and upgrade of Capacitors 7-9 power meters;
• Completed Villa Unit 1 modernization and capacitor controller upgrade, Chester Unit 1 and Hastings Unit 1 transformer upgrades, and Villa Unit 2A and Glenarm Unit 3B transformer tap changer upgrades;
• Completed communication hardware upgrade for Villa Substation;
• Completed Santa Anita 17 kV potential transformer fuse upgrades and Santa Anita Bank 4 transformer upgrade;
• Completed installation of open-air rack animal guards to Santa Anita 17kV Substation;
• Completed weatherization of switchgear for Units 3 and 4 at Oak Knoll Substation and Units 1 and 2 at Santa Anita Substation;
• Completed weatherization of roofs for Santa Anita historical building, Hastings, Eastern, Fairs Oaks, Villa, Brookside, and TM Goodrich Substations;
• Completed weatherization of substation transformers for Banks 4 and 5 at Santa Anita Substation, Banks 1A and 1B for Chester Substation, Banks 1A and 1B for Eastern Substation, and Banks 1A and 1B for Hastings Substation; and
• Completed weatherization of structures for Santa Anita historic building, Oak Knoll control house, and Del Mar control house.

 

Power Transmission and Distribution Infrastructure Improvements

• Repaired or replaced 37 underground vaults, pull boxes, and structure covers;
• Replaced 254 power poles;
• Installed, replaced, or upgraded approximately 158 transformers, 24 distribution switches, and 32.5 miles of conductor;
• Completed the installation of underground substructure to facilitate fire threat mitigation on Canyon Close Rd. and Fox Ridge Dr.; and
• Completed remodeling the Water and Power locker room.

 

Customer Service and Support

• Provided new or upgraded electric service to 475 residential and commercial customers and installed 15 new private property vaults;

• Expedited the restoration of electric services to about 100 homes/businesses that were impacted by the January 2025 Windstorm;

• Replaced eight, aging Isolated Fault Loop Detection and Restoration devices at customer facilities with new Resettable Fault Interrupters (RFIs). Installed 13 RFI covers to provide UV protection for existing RFI’s located within outdoor transformer enclosures; and
• Approved and installed approximately 350 solar meters for customer owned solar and/or energy storage systems.

 

Emerging Technologies and System Automation

• Continued working on Electric Vehicle Service Equipment (EVSE) or charging station installations throughout the City to support transportation electrification efforts. 

 

WATER DIVISION:

 

Supply

• Continued a program to renovate or replace aging water wells to ensure local water reliability:

• Completed the new Parke Well in Villa Parke;
• Completed the below-grade improvements for the Explorer Well and began designing above-grade improvements for the well;

• Continued planning for the new well site on the east side of the City;
• Completed the design of the infiltration basins expansion for the Arroyo Seco Canyon Project;
• Coordinated with Raymond Basin Management Board the construction of Washington Park Monitoring Well;
• Continued infiltration of stormwater in the Arroyo Seco Spreading Basins; and
• Continued to implement programs and actions to comply with regulatory guidance to reduce reliance on the Sacramento-San Joaquin Delta to capture surplus imported supplies in wet years for enhanced local groundwater replenishment.

 

Distribution

• Provided utility services support for 28 customer-driven development projects;
• Continued to replace aging pipelines and reduce system water loss through the Main Replacement Program;
• Completed water main replacement projects in Bellefontaine Street, Glenarm Street, Oakwood Street, Fair Oaks Avenue, and Grand Ave;  
• Cleaned approximately 15 miles of water mains through the continued management of the ongoing Unidirectional Flushing Program to ensure pressure, pipe velocity, and fire flow criteria are maintained and water quality is sustained;
• Maintained approximately 1,500 gate valves and replaced approximately 15 valves through the Gate Exercise Program;
• Replaced approximately 2,100 meters as outlined in the Water Meter Replacement Program; and
• Successfully responded to and repaired 16 water main breaks.

 

Storage

• Continued efforts for the design, environmental review, and community outreach for the Sunset Complex Reservoir Project, which will replace two, 125 year-old reservoirs with two, new concrete reservoirs with a total storage capacity of 11 million gallons:
• The Sunset Complex Reservoir Project will also include a groundwater treatment system, parking for department staff, site enhancements, and installation of emergency generators; and
• Continued the basis of design report to improve and upgrade the Don Benito Reservoir. 

 

Facilities and Services

• Completed construction to improve and upgrade the Ross Booster Station;
• Completed basis of design reports for the upgrades to Santa Anita and Eagle Rock Booster Stations;
• Modernization and improvements to the Water Supervisory Control and Data Acquisition system; and
• Continued to implement water conservation initiative projects to improve the appearance and water conservation at several water facilities. 

 

Regulatory Compliance

• Actively participated in several state and federal legislative initiatives and policy issues related to water resources, management, infrastructure, and drinking water quality;
• Completed water quality compliance reports including the Electronic Annual Report, Public Health Goal Report, Consumer Confidence Report, and Monk Hill Treatment System Report;
• Completed the initial Lead Service Lines Inventory and submitted to Division of Drinking Water (DDW) under the Lead and Copper Rule Revisions, and published inventory on the PWP website for customers to search;
• Submitted multiple permit amendments to DDW tied to system upgrades and operational changes—most notably, for the addition of Parke Well;
• Completed all associated regulatory requirements from initial and ongoing wildfire orders issued by DDW due to the Eaton Fire; and
• Updated PWP’s Cross Connection Control Policy to address policy updates that went into effect on July 1, 2024.

 

CONSERVATION, DEMAND MANAGEMENT, AND CUSTOMER PROGRAMS

 

POWER DIVISION:

• Continued ongoing community outreach efforts to GHG emissions reduction programs, which include customer rebates for electric vehicles, electric vehicle chargers and various energy-star/all-electric appliances, to align with local, regional, and statewide clean transportation and sustainability goals: 
• The Electric Vehicle (EV) rebate program transitioned to used vehicles only and issued approximately 370 EV rebates and more than 110 EV Charger rebates for residential electric customers, including bonus rebates for income qualified customers;
• Issued commercial EV Charger rebates for 5 commercial electric customers for a total of 71 EV charger ports (the existing commercial EV Charger rebate program contains bonus rebates for projects located in disadvantaged communities);
• Continued to provide and promote various energy efficiency programs, incentives, rebates, and direct installation services, with no cost to customers, to align with the City’s Climate Action Plan and achieve the City Council-adopted energy savings target of 11.72 Gigawatt (GWh) every fiscal year. Some of these initiatives include the following: 
• Home Improvement Program (HIP), which provides no-cost home efficiency upgrades to over 500 residential electric customers per year;
• Water Energy Direct Install Program (WeDIP), which provides efficiency upgrades at no-cost to approximately 300 small and medium commercial customers per year;
• Home Energy Rebates Program, which provides rebates to approximately 700 residential customers per year through rebates for qualifying energy star appliances such as qualifying HVAC equipment and building envelope measures, and, extended the eBike rebate pilot program for an additional year at the start of Fiscal Year (FY) 2024; and
• Home Energy Reports, which provides all PWP residential electric customers with personalized quarterly reports with easy-to-understand information about household energy use. Reports also include progress charts and personalized energy conservation tips and provide a comparison of energy use with similar homes in the area.

 

WATER DIVISION:

• Continued The Ripple Effect Campaign, a multi-year effort to build climate resilience and water sustainability:
• Through social media outreach, advertising and Water Conservation events, the campaign has continued to raise awareness of water issues that impact Pasadena and the region and foster a sense of pride in our community's local water supply and regional connectivity, highlighting the significant role that each PWP customer plays in preserving water for future generations. The Ripple Effect Campaign has been used to build a cohesive and recognizable brand within the community;
• Partnered with other departments and community organizations and hosted workshops throughout the community to educate residents and businesses on building drought resilience through regenerative landscape practices, native gardens, efficient irrigation, rainwater capture, and more;
• Partnered with Polytechnic School to host workshops on their campus to build a hügel and rain garden helping to educate their students on the importance of rain capture and how native plants support biodiversity;
• Launched a partnership with TreePeople to distribute Native Garden Kits to PWP customers. The program sold out within four days of being launched with over 120 PWP customers participating in the program;
• Partnered with the California Water Efficiency Partnership and SoCalGas to host a water efficiency workshop for hospitality industry professions. Topics included how to identify leaks, overview of water uses within hotels and where to look for water savings opportunities, and best management practices for restrooms, commercial kitchens, laundries, pools, and cooling towers;
• Partnered with Building Systems and Fleet Maintenance Division (BSFMD) to install hydration stations at City facilities;
• Celebrated Water Awareness Month in May 2025 with multiple events, including tours and education programs;
• Continued to provide and promote water efficiency programs, incentives, rebates, and direct installation services at no cost to the customer to reduce indoor and outdoor water use;
• Collaborated with City departments to help support the conversion of non-functional turf to drought tolerant landscaping at City parks and City facilities;
• Continued the "Native Nights Series” in partnership with the Arroyo Seco Foundation and the Hahamongna Native Plant Nursery. The Series featured talks on the benefits of natives, building soil health and biodiversity, the health of the watershed, soil remediation, fire wise plants, and more;
• Worked with neighboring cities and water agencies to host rain barrel distribution events, offering the community the opportunity to pick up rain barrels and receive a rebate to cover the cost of purchase;
• Continued the Team Water Savers Program notifying customers about irrigation issues observed in the field and offering resources and programs to assist, such as irrigation check-ups, free spray-to-drip conversion kits, and rebates for efficient sprinkler heads;
• Continued to offer landscape surveys to residential customers to assess their landscape, their plant watering needs and offer drought tolerant plant recommendations;
• Continued to distribute drip kits at no cost to customers, providing an effective resource to convert high water use sprinklers to drip irrigation;
• Partnered with the City's Public Works department to enhance the Sierra Madre Median and develop outreach strategies to engage the community in the planning efforts. Outreach efforts included participation in community meetings, distributing native plants to attendees, and providing education on the benefits of natives for building climate resilience;
• Rebated 1,000 devices for commercial and residential customers and over 40 customers participated in the turf removal rebate program, transforming over 50,000 square feet of turf to drought tolerant landscaping; and
• Installed over 3,000 water efficiency devices directly at no cost to both residential and commercial customers through PWP’s HIP and WeDIP measures. 

 

MANAGEMENT AND ADMINISTRATION

 

Legislative and Regulatory

• Tracked and monitored numerous state legislative bills and regulatory proceedings related to California GHG emission reductions, renewable energy requirements, distributed generation, electric vehicles, building electrification, net energy metering, procurement, natural gas, water use efficiency, drought, clean drinking water, and water supply reliability;
• Monitored several federal legislative bills and policy issues related to energy and water infrastructure, drought relief, advanced refunding bonds, and climate change, as well as various environmental and energy regulations advanced at both the Environmental Protection Agency (EPA) and the Federal Energy Regulatory Commission (FERC); and
• Maintained compliance with 41 applicable North American Electric Reliability Corporation (NERC) standards with over 780 requirements through monitoring, self-certification, and improved policies and procedures.

 

Finance and Administration

• Proposed numerous rate ordinances modernizations within the Pasadena Municipal Code impacting aspects such as direct access provisions, long-term contracts, Electric Utility Assistance Program qualifications and working capital reserve policy and related reserve alignments;
• Developed, evaluated and recommended an overall financial strategy to support PWP’s business strategies and maximize the value of the utility;
• Completed operating and capital budgets that ensure reliability and excellent customer service at competitive rates;
• Completed the water cost-of-service and rate design study in FY 2024, with City Council approved five-year rate plan starting in FY 2025 in compliance with Proposition 218;
• Issued a Request for Proposals for the Electric Rate Study and selected a consultant to support in this effort. The contract was approved by the City Council in April 2024, with the project kick-off occurring in August 2024. The Electric Rate Study is currently underway;
• Filed the 2025 update to PWP’s Transmission Revenue Balancing Adjustment account with FERC;
• Ensured compliance with the Energy and Credit Risk Management Policy;
• Maintained participation in the wholesale energy market and ensured ongoing compliance with mandated requirements;
• Completed PWP’s FY 2024 Annual Report;
• Issued about 350 purchase orders valued at approximately $25 million;
• Managed approximately 4080 outbound utility materials requisitions valued at about $15 million to keep field crews productive and responsive to emergencies and operational needs;

• Managed approximately 510 inbound utility materials requisitions valued at about $18 million to support Water and Power operations through the supply chain challenge. Supported the operations of the utility during the Eaton Fire and Windstorm as well as response efforts such as the Drinking Water Distribution Site and temporary shelter at the Convention Center; and
• Coordinated utility-wide documentation and financial recovery for the Eaton Fire and Windstorm.

 

Customer Service and Technology

Customer Service 

• Answered over 74,484 customer calls;
• Produced and mailed over 616,220 bills;
• Processed nearly 306,713 Interactive Voice Response (IVR)/Interactive Web Response credit card transactions;
• Conducted almost 797,379 electric and water meter reads;
• Processed over 9,717 online requests to start, stop, and disconnect service; and
• Completed over 30,836 field service orders to start, stop, transfer, disconnect, or reconnect utility services.

 

Technology

• In partnership with Power Delivery, Water Delivery, and Finance and Administration, an Enterprise Asset Management (EAM) Software and implementation vendor were selected. This system will provide work management tools and improve efficiency by optimizing the lifecycle, maintenance, and performance of water and power assets;
• Completed the Advanced Metering Infrastructure (AMI) Needs Assessment Phase, which involved evaluating business, operational, and technical requirements to ensure alignment with organizational goals and customer service improvements;
• Launched the new MyPWP mobile app, providing a one-stop solution for managing utility services. The app allows customers to monitor usage, pay bills, request service, and report power outages all from the convenience of a smartphone;

• Continued enhancements of the Customer Information System (CIS) to add additional online options and improve operations;

• Started a project to upgrade PWP’s Geographic Information System (GIS) to the Utility Network data model; and
• Purchased and deployed cyber security technology that protects PWP systems by detecting in-progress cyber-attacks, including ransomware and threats to critical infrastructure.

 

Operating and Capital Budget

PWP continues to experience significant financial challenges due to the rapidly evolving utility service industries and market instability. Increasing regulation and legislative actions, new technology, and higher infrastructure investment create upward pressure on costs to produce and deliver safe, affordable, and reliable energy and water. To provide vital City services, PWP reviews its fiscal strategy and priorities and maintains balanced budgets to support system operation, capital improvements including technology transformation, electrical reinvention and renewal, water reinvestment, as well as preservation of the utility’s financial integrity.

 

 

Power Fund

The FY 2026 Adopted Power Fund Budget totals $282.3 million and relies on forecasted retail revenues of $241.2 million — a net decrease of $3.0 million compared to FY 2025 Revised Budget due to downward Power Cost Adjustments (PCA). Retail sales volume is expected to remain steady. The fiscal impacts of the IRP, PDMP, technology modernization are placing pressure on revenues from traditional rate structures and require that PWP’s rates remain competitive with new alternative resources. PWP is developing a comprehensive Optimized Strategic Plan (OSP) to guide decisions toward achieving 100% carbon-free supply portfolio by 2030. Net Income is influenced by energy market fluctuations, supply constraints, escalating costs for personnel, contract and maintenance services, and utility rebates and other operating expenses.

 

Water Fund

The FY 2026 Adopted Water Fund Budget totals $84.1 million, relying on a forecasted retail revenues of $92.3 million—a projected $12.5 million increase due to implementation of the second-rate adjustment in an approved five-year rate plan. Local water supplies continue to face constraints stemming from resource limitations, water quality requirements, and the aftermath of the January 2025 windstorm and fire. Major initiatives - including Eaton Windstorm and Fire Recovery, Arroyo Seco Canyon Project, Explorer Well Project, and Sunset Reservoir Improvements – aim to enhance the reliability, safety, and quality of the water supply. PWP is actively pursuing grants funding and federal loans (such as the Water Infrastructure Finance and Innovation Act) for these critical projects. Net Income is affected by rising costs tied to imported water rate increases from Metropolitan Water District (MWD), alongside higher expenses for personnel, electric, depreciation, and general operations.

 

Personnel 

The FY 2026 Adopted Budget includes 442.0 Full-Time Equivalent (FTE) positions, marking an increase of 12.0 FTEs from the FY 2025 Adopted Budget. Of these, 5.0 FTEs will support capital projects, while the remaining 7.0 FTEs will assist with various operating programs.

Compared to FY 2025 Revised Budget:

 

Power Operating Fund

• Intergovernmental revenues increased by $2.1 million due to anticipated grant funding on various projects;
• Investment earnings increased by $5.1 million due to projected net unrealized gains from pooled investments and Stranded Investment Reserve (SIR);
• Cap and Trade retail revenues decreased by $6.7 million due to a reduction in trading activities;
• Wholesale energy sales increased by $0.3 million due to higher sales to CAISO at an increased rate;
• Personnel costs increased by $3.3 million primarily due to projected increases in salaries and benefits by $2.4 million, and the approval of 6 new FTEs to support operating programs which added to $0.9 million;
• The overall services and supplies decreased by 10.8 million mainly due to decreases in energy costs by $17.7 million, offset by increases in utility rebates by $3.9 million, contract, consultant and legal services by $2.0 million, rent expense by $0.7 million, and electricity by $0.3 million;
• Interest expense increased by $1.2 million driven by the issuance of new 2024A Electric Refunding Bonds;
• Depreciation expenses increased by $1.0 million due to a projected increase in capital projects to be completed in FY 2025; and
• The General Fund Transfer (GFT) increased by $0.4 million to $28.5 million based on twelve percent of FY 2025 revenues from sale of electric energy at rates and charges fixed by ordinance.

 

Water Operating Fund

• Intergovernmental revenues increased by $2.0 million due to anticipated grant funding on various projects;
• Investment earnings increased by $0.5 million primarily due to projected net unrealized gains from pooled investments;
• Personnel costs increased by $0.7 million primarily due to projected increases in salaries and benefits, along with the approval of a new FTE to assist with operating needs;
• Services and supplies increased by $5.8 million primarily due to an anticipated higher volume of Purchased Water from MWD at higher rates, projected increase in rent expense for a new warehouse and in electric costs for wells operation;
• Depreciation expense increased by $1.0 million primarily due to an increase in capital projects planned to be completed in FY 2025; and
• Warehouse store issues and equipment usages increased by $1.1 million mainly due to anticipated increases in material and vehicle usages for capital projects.

 

In FY 2026, PWP will continue to update and implement its resource and capital plans for both the Water and Power utilities. Affordability, criticality, urgency, and value will drive PWP’s priorities for procuring energy and water and the necessary level of capital investment to meet those priorities. To stabilize revenues, PWP is actively engaged in the development and production of new products and services, including EV charging infrastructure and the electrification of components of transportation and commercial enterprises. Installation of AMI is a major investment for automation and operational technology solutions to improve efficiencies and service to customers. In addition, PWP continues to invest in cybersecurity systems to manage threats to critical infrastructure. PWP expects significant ongoing challenges to manage industry changes, higher costs, and customer demands.

 

POWER DIVISION:

 

Climate Goals

 

PWP continues to invest in renewable energy resources that both meet California’s accelerating clean energy targets and align with approved Power IRP goals. As required by state regulations, PWP achieved 44% RPS for Calendar Year (CY) 2024 and is on track to achieve 46% in CY 2025.  Official results subject to final verification of Compliance Periods 4 and 5.  Requirements increase annually as California works to achieve Senate Bill 100 milestone goals of 60% renewable by 2030 and 100% renewable and zero-carbon by 2045. PWP has long focused on decarbonizing its energy portfolio, including incorporating the City Council’s decision to exclude fossil-fuel resources from any long-term contract options in the 2018 IRP. This decision also includes termination of Pasadena’s interest in the Intermountain Power Project Coal Contract, effective in 2027, and limiting long-term investments to renewable and zero-carbon resources only.

 

The 2023 IRP incorporates City Resolution 9977, which declares a climate emergency in Pasadena and sets a goal to source 100% of Pasadena’s electricity from carbon-free sources by 2030 while optimizing for affordability, stability, and reliability. To meet the fast-approaching 2030 target, which accelerates California’s 2045 goal by 15 years, PWP is focusing on implementation efforts, beginning with the development of an Optimized Strategic Plan (OSP), which will guide resource planning efforts through the clean energy transition.

 

California’s fast-paced, statewide decarbonization efforts have resulted in industry challenges, such as market volatility, competition for scarce resources, project development delays, and transmission and infrastructure challenges. PWP continues to focus on resource investments that balances electric reliability with affordability and environmental stewardship, including ongoing evaluation of emerging technologies that will help meet goals. To this effort, PWP is pursuing grant opportunities, such as the Inflation Reduction Act, to help offset project costs. 

 

Finally, PWP will continue to expand the Pasadena electric vehicle market to support greenhouse gas reduction goals, increase utility revenues, and complete major repair projects to improve overall reliability.

 

Capital Improvement Projects

 

The FY 2026 Power Delivery Capital Improvement Program (CIP) includes ongoing work to provide new and upgraded electric services; electrical design and construction to extend 17 kV distribution circuits and to upgrade various 4 kV distribution circuits to 17 kV; ongoing replacement of substation circuit breakers, underground cables, power poles, transformers, and switches; continuing replacement, reinforcement, and repair of underground infrastructure, including vaults and pull boxes; seismic upgrades and oil containment installations at substations; and continuing work on utility undergrounding projects, including the installation of substructures and electrical facilities necessary for completing the conversion of overhead high voltage circuits to underground for two Tier 3 Extreme Fire Threat Districts.

 

Upcoming Power Delivery facilities and technology projects include the development of a design for the remodeling of the Primary Dispatch Center; repaving the parking lot around the Water & Power Warehouse; ongoing work to expand the fiber optic communication network; upgrade of protection/control relays for 35 kV subtransmission lines and distribution feeders; ongoing work to automate distribution circuits; continuing procurement for a mobile substation transformer; and ongoing system maintenance for SCADA, GIS, and the Outage Management System (OMS).

 

In FY 2026, the replacement/upgrade to an existing 35 kV subtransmission line between Glenarm Receiving Station and Oak Knoll Substation will be completed to enhance load flow within the subtransmission system. Complete procurement for underground cable materials for the replacement/upgrade of 35 kV subtransmission lines (Path 2) between Glenarm and Santa Anita Receiving Stations. Lastly, Power Delivery will continue a study to evaluate all options to reconfigure/upgrade the 35 kV subtransmission system to reduce the fault current under the 25 kiloampere (kA) at the receiving stations.   

 

Power Delivery will continue to expand the network of EVSE installations throughout the City, which will also assess numerous additional sites throughout Pasadena, working with local stakeholders to identify potential locations for new EV charging infrastructure projects.

 

Timely response to customer requests for new or upgraded services and the development and implementation of training programs for engineering and field personnel will remain a priority.

 

WATER DIVISION:

 

PWP will continue to implement the recommendations of the WSRP, which guides infrastructure investments to ensure adequate production of local water supply and reliable distribution of water under current and future conditions.

 

Supply

 

PWP continued to partner with the MWD and Raymond Basin groundwater producers in FY 2025 to implement programs to capture surplus regional supplies for additional groundwater storage augmentation. PWP actively captured and recharged over 4.7 billion gallons of stormwater at Arroyo Seco and Eaton spreading basins to further increase groundwater supplies.

 

PWP continues to seek opportunities to partner with agencies to maximize stormwater capture in times when water is available. Infrastructure projects such as the Arroyo Seco Canyon Project and the Devil’s Gate Reservoir Pump-Back Project are being planned and designed to enhance stormwater capture for further replenishment of our groundwater basin. These projects help bolster water supply reliability, including increased resilience in times of prolonged drought.

 

To support supply reliability and improve regional water self-reliance, PWP is decommissioning inoperable or unreliable wells due to age and continues to construct new or replacement wells. In FY 2025, the Parke Well was completed and the below-grade improvements for the new Explorer Well were completed. In FY 2026 Parke Well will be in service, construction of Explorer well aboveground improvements will be in progress, and construction of the Arroyo Seco spreading basin expansion will begin.

 

Distribution and Storage

 

PWP will continue the installation of new and replacement water distribution mains, new gate valves, water services, and fire hydrants at various locations throughout its service territory. This ongoing program improves water flow and pressure for drinking services, fire protection, and water quality. The replacement of aging water mains will continue throughout the fiscal year, with projects occurring at Oak Knoll Avenue, Holly Street and Mentor Avenue. 

 

The Sunset Complex environmental review and permitting will be completed in FY 2025. There will be continued effort on the design for the replacement of the 125year-old Sunset Reservoirs. Construction is expected to begin in FY 2026 and be completed in FY 2028, and the site will feature new reservoirs, a new groundwater treatment system, a parking area, and other enhancements.

 

Facilities and Services

 

Improvements and upgrades are in the works to protect water flow during power outages, bolstering the City’s disaster preparedness efforts. Installation of portable emergency generator connectivity at eight booster stations was completed in FY 2024 to mitigate the effects of potential power outages and a stationary generator was installed at the Wadsworth Groundwater Treatment Plant in FY 2024. Future improvements to the Sunset Complex Project will include stationary emergency generators.

 

The Water Division continues to develop compliance strategies to address state and federal water quality requirements and protect the health of the community.

 

Water Conservation

 

PWP will continue the implementation of new programs to comply with the Making Conservation a California Way of Life Regulations, which were finalized in July 2025. New programs include managing and reducing indoor and outdoor water use across all customer classes and working with commercial customers to implement best management practices for water efficiency. PWP will be looking to develop additional resources and programs to support our residential and commercial customers, such as new rebates and incentives, commercial water audits, expansion of existing programs, and more.

 

PWP is actively improving drought resiliency by engaging customers in programs to enhance water efficiency, transform landscapes, and capture and infiltrate rainwater. PWP will continue to work with other departments, residential and commercial customers to promote these practices. To enhance customer engagement, staff will be looking at more opportunities for community engagement on a regular cadence. Additionally, grant opportunities will continue to be explored and applied for to support customer programs, and allow for additional programs, rebates, and incentives.

 

PWP is embarking on an education and outreach program focused on enhancing awareness of native plants and their benefits for the community: A dedicated webpage, workshops, and design resources will be available for PWP customers to learn more about “natives” and to receive incentives to plant natives in their gardens.  

 

PWP continues its program on Hügelkultur and will be offering hands-on workshops to learn more about this permaculture technique, and will be partnering with schools, City departments and non-profit organizations to implement Hügels at various school sites in the City.

 
EXTERNAL AFFAIRS:

 

Public Benefits

 

PWP remains committed to improving its existing energy efficiency, income qualified bill assistance and electrification programs to provide a streamlined customer experience, while increasing overall cost effectiveness. As industry trends and utility goals evolve, PWP consistently evaluates its current programs to ensure that the available offerings continue to provide value to customers while helping meet council adopted energy efficiency goals and align with the GHG emissions reduction strategies outlined in the city’s climate action plan.

 

Based on its robust catalog of energy efficiency and electrification programs, PWP is well-positioned to help customers achieve operational objectives, ranging from conservation to de-carbonization. In particular, the utility continues to offer generous incentives and rebates through its efficiency and transportation/building electrification programs, with additional offerings being developed to encourage customers to make the switch to all-electric appliances/equipment in existing buildings as well as new construction projects. PWP is also developing similar programs to provide incentives for solar and energy storage systems in residential and commercial buildings.

 

Legislative Programs

 

Legislative activity at the state and federal levels is expected to focus on water resources, utility infrastructure, clean energy, and ratepayer affordability. Climate change policy priorities will continue to drive proposals nationally. In recent years, the California Legislature has proposed hundreds of utility-related bills each legislative session. PWP anticipates an increase in this policy area due to a growing focus on environmental protection, drought resiliency, transportation electrification, building electrification, and wildfire mitigation. Water, energy, and environmental policy issues are generally very technical in nature and legislators rely heavily on the technical expertise of regulatory agencies to develop policies and procedures for the implementation, compliance, and enforcement of these laws. The increase in utility-related legislation drives more regulatory proceedings that also require monitoring and advocacy, such as participation in hearings and submission of written comments. PWP continues to prioritize action items based on urgency and relevancy.

 

Financial Programs

 

PWP aims to enhance financial health and stability by applying robust measurements, controls, and procedures while contributing to the City’s General Fund to sustain critical public services.

 

Long-term planning remains a focus, with the implementation of financial management best practices and policies ensuring fiscal discipline and foresight. 
Upcoming priorities include reviewing and adopting a financial reserve policy tailored to the needs of publicly owned utilities and assessing energy risk. To keep rates affordable, PWP maintains foundational policies that promote good governance, uses technology for revenue capture and a better customer experience, evaluates long-term return on investments in cost-benefit analysis, and reviews asset management planning for risk-based approaches to maintain reliable systems. 

 

As part of ongoing efforts to enhance financial and operational efficiency, implementing an EAM system remains a key priority for PWP. This system streamlines asset lifecycle management by improving maintenance scheduling, inventory tracking, and cost analysis, reducing emergency repairs and unplanned downtime. By leveraging predictive maintenance, it helps prevent costly failures while optimizing resource allocation and budgeting for capital expenditures. Real-time cost tracking strengthens financial planning and supports data-driven decision-making, while enhanced regulatory compliance mitigates risks and avoids fines. Integrated with utility operations, EAM improves infrastructure reliability, maximizes financial control, and drives long-term cost savings. Future initiatives will build on these advancements to further enhance asset performance and operational sustainability.