2026 Electric Rate Adjustment

After an extensive community engagement process, Pasadena Water and Power is adjusting rates to ensure reliable, affordable, and sustainable power for every customer - now and for generations to come.

Why Rate Adjustments Are Necessary

Rate increases are essential to keeping the lights on and the energy system reliable for years to come. The costs of equipment, supplies, and power resources have risen significantly, and the aging power grid requires ongoing investment to remain safe and dependable.

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Rising Cost of Equipment & Supplies

The materials needed to keep the lights on, like cables and transformers, have increased dramatically. Since 2019, cable costs have nearly doubled and transformer prices are up about 75%. These are essential components that are both more expensive and harder to procure.

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Increasing Cost of Power Resources

Since 2018, PWP has purchased only long-term renewable energy to serve the community -- well ahead of state requirements and in support of Pasadena's 100% carbon-free goal. Renewable energy contracts are in high demand nationwide, driving up acquisition costs.
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Power Grid Investment Needs

Much of Pasadena's electric system is aging. To prevent outages and meet the growing demand -- especially with more electric vehicles and home electrification -- substations must be upgraded, equipment replaced, and power lines strengthened.

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Long Term Financial Stability

PWP is in excellent financial shape with strong credit ratings and healthy reserves. Modest, steady rate increases now allow for smart, forward-looking investments -- avoiding larger, more disruptive adjustments in the future.

 

7%
System average rate increase		 ~63K
Customers will see a bill decrease or minimal change (under $10 increase)		 #1
Lowest residential electric rates among comparable SoCal utilities

 

How PWP Compares to Neighboring Utilities

Monthly residential electric bill at 500 kWh  - February 2026 (non-TOU rate, excl. taxes & non-bypassable surcharges)

A bar graph comparing five local utility companies relative cost and monthly bill with Pasadena Water and Power's proposed rate as the lowest. Southern California Edison - $161.60, Glendale Water & Power - $154.17, LA DWP - $131.32, Burbank Water and Power $131.32, and Pasadena Water and Power $109.26. Amounts represent a single‑family residential bill at 500 kWh/month. Calculated using published non‑time‑of‑use rate schedules. Excludes taxes and non‑bypassable surcharges. SCE includes wildfire insurance fund charges. Source: publicly available utility rate schedules, February 2026.

Where the Money Goes

Electric rates pay directly for operating and maintaining the system that delivers safe, reliable power to every home and business in Pasadena. Below is how the utility's annual revenue is allocated across key functions.

$145M
Power Supply
$101M
Distribution
$16M
Customer Services
$14M
Transmission

What Makes Up Your Electric Rate

Residential electric bills are composed of several distinct charges, each associated with a different part of the system that delivers power to the home.

  • Fixed Monthly
    • Customer Charge - A fixed monthly charge for billing, customer service, meter reading and connection to the grid - regardless of energy use.
    • Grid Access Charge - A fixed monthly charge for the cost of maintaining and connecting to the grid, regardless of consumption.
  • Per kWh
    • Distribution Charge - A usage-based charge for delivering electricity from substations to homes, including operations, maintenance, capital investment, and debt service.
    • Transmission Services Charge - A usage-based charge for delivering electricity for generating plants to PWP's substations.
    • Energy Services Charge - A usage-based charge covering the direct cost of generating the actual amount of electricity consumed. The energy services charge includes power cost adjustment (PCA).

What Could This Mean for My Bill?

Because rates are restructured -- not simply increased across the board -- customers will experience different impacts depending on their usage. The majority of customers will see little to no change or even a decrease.

Example A - Moderate User
Typical family, 500 kWh/month		 Example B - Higher User
Larger home or higher usage, 1,000 kWh/month
Customer Charge $11.00
Grid Access Charge $6.50
Distribution Charge $33.30
Transmission Charge $8.05
Energy Services Charge $50.42
Total $109.26
▼ $5.75 decrease vs. current rates
Customer Charge $11.00
Grid Access Charge $6.50
Distribution Charge $131.42
Transmission Charge $16.09
Energy Services Charge $100.84
Total $265.85
▲ $14.46 increase vs. current rates

Examples do not include surcharges, taxes, or other utility services. Actual bills will vary.

Try the Bill Estimator

Because changes will impact customers differently, a bill estimator has been created for all customer types. Use the bill estimator to see a personalized projection of what upcoming rates could mean for your bill.

Electric Bill Estimator 2026

 

Customer Programs & Assistance

PWP offers a range of programs to help customers manage their energy bills, including bill assistance for income-qualified households, residential energy rebates, and home efficiency programs. These programs remain available regardless of rate changes.

Public Engagement and Documents

For an archive of documents, public engagement records, municipal city council agendas and more, visit our Electric Rate Study Archive.