Pasadena Water and Power customers on its S-1 small-commercial electric rate pay $35.20 per meter in fixed monthly charges under the schedule effective Oct. 1, regardless of how much electricity they use.

The charges apply to customers in PWP's S-1 small-commercial classification, which covers electric service with demand below 30 kilowatts, Pasadena Now reported. That category includes stores, offices, motels, schools, churches and manufacturers.

The $35.20 breaks down into an $18.20 monthly customer charge and a $17 grid-access charge. Those are unavoidable costs that appear on every bill regardless of how much electricity a business uses.

The fixed charges are only part of the bill.

S-1 customers pay additional per-kilowatt-hour charges for energy, transmission and distribution. Other charges may also apply, according to Pasadena Now.

Second phase of a three-part plan

The new rates represent the second phase of a three-stage electric rate adjustment the Pasadena City Council unanimously approved in March. Each phase targets an approximately 7% systemwide increase, though the actual impact on individual customers varies by consumption and service classification.

PWP has said the increases are needed to cover rising operating costs and to maintain and improve aging electrical infrastructure, including poles, wires, transformers and other equipment.

The rate plan is expected to generate about $84 million annually in additional revenue, according to Pasadena Now's reporting on the March approval. The city would also draw on approximately $36 million in cash reserves to offset some of the burden on ratepayers.

Chamber opposition

The Pasadena Chamber of Commerce opposed the increases when the council considered them in March and highlighted the rate changes again in its Oct. 28 weekly member bulletin, according to Pasadena Now.

In Pasadena Star-News coverage of the March vote, Chamber President and CEO Paul Little said the board voted "overwhelmingly" to oppose the rate increase. "It's too much, too fast at the wrong time," Little said, imploring the board to consider the long-term impact on businesses and their customers.

Larger commercial accounts face steeper fixed charges. Medium commercial customers on primary service pay $307.20 per month in combined customer and grid-access charges. Those on secondary service pay $295, according to Pasadena Now.

Third hike still on the table

A third increase is scheduled for March 1, 2027. But the council directed a committee review of whether that phase is necessary after the second phase took effect.

Council member Justin Jones, who chairs the Municipal Services Committee, said during the March approval that the council "put guardrails in place requiring staff to return after the second phase to determine whether a third phase is truly needed," according to Pasadena Now's reporting on the vote.

Businesses can review current rates and estimate their bills using PWP's online bill estimator at pwp.cityofpasadena.net or by calling (626) 744-4005.