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PWP Proposes Rate Change
News Jun 05, 2012
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PWP Proposes Rate Change
City Council will hear June 11
Residential and commercial customers may soon see a change to rates for the Distribution and Customer Charge of their electric bills from the City’s Water and Power Department. The Pasadena City Council will consider amending the Light and Power Ordinance (P.M.C. 13.04) at its next regular meeting, beginning 6:30 p.m. Monday, June 11.
Pasadena Water and Power (PWP) is proposing to increase the Electric Distribution and Customer (D&C) Charge to generate an additional $3.75 million in annual revenue. The additional revenue will fund capital investments and cover increased operational expenses. The City’s electric utility identified the need for the proposed rate adjustments during the Fiscal Year 2013 budget presentation at the May 21 Special Joint Meeting of the City Council/Finance Committee.
The City Council last approved an increase to the D&C Charge about five years ago in October 2007. If approved, PWP would apply the new rate to the first bill issued after July 1, 2012. All customer groups will be subject to the increase.
If the new rate is approved by the City Council, residential customers using about 500 kilowatt hours per month would see their monthly D&C charge increase by about $2.52. Residential customers using about 1,000 kilowatt hours (kWh) per month would see their monthly D&C charge increase by about $4.73.
The D&C charge for most small commercial customers using about 2,000 kWh would see a change of about $7.68 per month; and about $15.36 per month for customers using around 4,000 kWh.
The monthly D&C charges for commercial customers are based on their peak demand on the distribution system. Distribution rate increase for most medium commercial customers will average $0.82 per kilowatt (kW), or $82 per month for a 100 kW customer. The average distribution rate increase for most large commercial customers will be $0.79 per kW, or $790 per month for a 1,000 kW customer.
The D&C Charge is one of four components of the electric rate paid by PWP customers. The D&C Charge is for the operational costs of distributing power to customers, including repairs and maintenance to poles, cables and vaults, capital improvements to improve reliability, meter reading, billing and customer service.
For more information on the rate changes please go to PWP website at www.PWPweb.com/YourPower or call Customer Service at (626) 744-4005.
