Power Integrated Resource Plan

2023 Power Integrated Resource Plan

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The Power Integrated Resource Plan (IRP) is Pasadena’s long-range blueprint for supplying reliable and environmentally responsible electricity at competitive rates.

The IRP is developed through a comprehensive multi-stakeholder process and is updated at least once every five years to incorporate the latest laws, regulations, market conditions, and community preferences. Pasadena has produced six IRPs since 2009, each representing a successor to the previous version. The 2023 IRP was approved by the City Council on December 11, 2023.

Resolution 9977

The 2023 IRP incorporates Resolution 9977, which was adopted by the City Council in January 2023 and sets a goal to provide 100% of Pasadena’s electricity with carbon-free resources by the end of 2030, while optimizing for affordability, rate equity, stability, and reliability of electricity. Expanding on the groundwork set by the 2018 IRP, which was one of the first in California to incorporate the landmark clean energy requirements of Senate Bill (SB) 100, the 2023 IRP accelerates the state’s 2045 zero-carbon target by 15 years and represents one of the most ambitious carbon reduction plans in the nation.

Goals of the 2023 IRP

With important clean energy foundation and goals already established in past IRPs, the 2023 plan continues to focus on carbon reduction strategies that ensure operational safety and reliability, flexible resource planning and investments, and ratepayer protections. Operational and financial results are reevaluated on an ongoing basis to ensure proactive consideration of conditions such as new and changing laws and regulations, resource availability, and market conditions.

The 2023 IRP was developed with a forward-thinking approach that strives to meet and exceed California’s increasingly ambitious clean energy targets as quickly as possible. The formal decision to phase out long-term fossil fuel resources from Pasadena’s energy portfolio was included in the 2018 IRP and continues in the 2023 plan. Accordingly, Pasadena’s interest in an existing coal project will expire in 2027 with another natural gas contract expiring in 2036. New long-term investments are limited to renewable and zero-carbon resources that meet both California regulatory requirements and the goals of Resolution 9977.

In addition to acquisition of resources, actions such as the following may be evaluated to support overall carbon reduction goals:

• Explore expansion of distributed energy resources such as community solar.
• Support the development of mass transit electric vehicles and vehicle-to-grid distributed storage.
• Expand Demand-Side Management and Energy Efficiency programs.
• Implement Advanced Metering Infrastructure (AMI).
• Continue to monitor and evaluate developments in emerging technologies and associated funding opportunities.
• Evaluate opportunities for new or updated customer incentives and subsidies, including low-income, to encourage increased community efficiency efforts.
• Monitor the impacts of the City’s Building Electrification Ordinance, which becomes effective in 2025.

Above all, PWP will continue to prioritize safety, electric reliability, and rate equity to ensure that its evolving portfolio continues to meet or exceed regulatory requirements and standards.

Waypoint and Framework

To evaluate effectiveness of the plan, the 2023 IRP includes a “Waypoint Framework,” which provides incremental points in time to assess overall progress. These interim evaluations will help initiate timely changes that might be necessary to better support Pasadena’s carbon-free goals.

In Years 2026 and 2028, opportunities and impacts presented by conditions such as the following will be assessed:

• New and emerging technologies that were not available or considered in the past.
• Changing market conditions that affect resource availability or affordability.
• New or changing laws and regulations.

The 2028 Waypoint specifically aligns with the development of the next IRP so that any new opportunities or recommendations can be considered in the update.

Optimized Strategic Plan

Pasadena’s path to carbon-free electricity will be charted through a comprehensive Optimized Strategic Plan (OSP), which PWP is developing in collaboration with Energy and Environmental Economics, Inc. (E3), a recognized leader in clean energy policy implementation. The OSP is a roadmap that defines the key actions and future decision points that will best position PWP to achieve carbon-free electricity by the end of 2030 while maintaining reliability and limiting cost impacts to customers. The OSP will consider how new generation resources, infrastructure investments, and customer programs can facilitate Pasadena’s transition to clean energy.

Clean Energy Tracker

Visitors are invited to track and monitor progress made on Pasadena’s carbon-free goals through the online Clean Energy Tracker. The tool provides periodic performance updates on Resolution 9977 goals as well as requirements for regulatory programs such as the Renewable Portfolio Standard.

Electric Rate Study

PWP conducts periodic rate studies to identify the revenue requirements for providing electric services to the Pasadena community. Work has started on the latest study, which will integrate information from the OSP, Power Delivery Master Plan, capital and operating budgets, and other available industry sources into the financial model to help forecast the revenue needed to provide mission critical services. With these projections, the rate study will present multiple scenarios and options for the City Council to consider, including revenue and recovery methods by customer type. The Electric Rate Study will focus on setting rates that align with the current state of the electric industry and can best utilize advancements such as AMI. Completion is expected by mid-2025.

Stakeholder Technical Advisory Group

To ensure that the priorities of the community are recognized in Pasadena’s long-term energy planning, a Stakeholder Technical Advisory Group (STAG), comprised of a diverse representation of ratepayers, residential and commercial customers, environmental advocacy groups, City Commissioners, and City leaders was created to participate in the IRP process. The 2023 STAG attended 10 meetings from December 2022 through September 2023 and provided important input and feedback on Pasadena’s energy future.

Previous Power IRPs

Prior to 2023, PWP published IRPs in 2009, 2012, 2015, 2018, and, most recently in 2021.

To view archived Power IRP documents, click here.