Pasadena City Council has made a pivotal decision, one with a ripple effect that will be felt in the homes and businesses of its residents: the implementation of a new rate structure and related adjustments for water services provided by Pasadena Water and Power (PWP). These changes are not to be taken lightly, as they come into force on the first of July and will introduce an incremental increase over the next four years. Initial hikes hit families with a 13% raise in their water bills beginning in 2024, which then eases into a 7% rise by the year 2028. The adjustment was explained to the council by consultant Steve Gagnon, who detailed the varying impact on different customer classes. Single-family units will see their bills ascend modestly by $8, whereas those with larger families could shoulder up to a $29 increase. Conversely, there’s a silver lining for certain commercial consumers. For instance, a medium-sized commercial entity will enjoy a substantial $77 cutback, a change largely attributed to adjustments in the fixed charges associated with meter capacity.
Analyzing the Rate Change Necessity
This financial recalibration is a direct response to soaring costs in water service provisions, spanning from water procurement to local groundwater management and significant infrastructural investments. With an eye toward the city’s water conservation ambitions, these adjustments seem inevitable. PWP is bracing for a time when expenditures will eclipse revenues as early as the fiscal year 2024. In an attempt to soften the impact on residents, PWP is on the lookout for grant opportunities and is currently considering a low-interest Water Infrastructure Finance and Innovation Act (WIFIA) loan, which could temper potential future rate escalations. Despite these efforts, there’s a clear undercurrent of discontent among community members. This sentiment was solidified through a letter penned by 23 individuals, raising legitimate concerns about the burden such changes will inflict on the city’s lower to middle-income demographic, a stark reminder that financial changes are not felt equally.
The Community Response and Future Prospects
In a momentous decision by the Pasadena City Council, a significant shift in the water rate structure by Pasadena Water and Power will soon impact both residential and commercial customers. This new pricing scheme, taking effect on July 1st, is marked by a gradual four-year escalation. Residential rates will kick off with a challenging 13% surge in 2024, followed by a stabilizing increase to 7% by 2028. To provide clarity on this matter, consultant Steve Gagnon elaborated on the disparate effects on various types of customers during the council briefing. Single-family homes will undergo a modest elevation in their water bills, averaging an additional $8. However, households with greater water consumption might experience a steeper climb, potentially up to $29. In the commercial sector, there are pockets of relief, particularly for medium-sized businesses, which are slated to experience cuts up to $77, thanks mainly to the restructuring of fixed meter capacity charges.
