Pasadena City Council Approves Electric Rate Hike

Three-phase increase aims to fund power grid upgrades and offset rising operational costs.

Apr. 1, 2026 at 1:25pm

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The Pasadena City Council has approved a three-phase increase to electricity rates in the city, with the goal of generating approximately $84 million annually to maintain and upgrade the city's power system. The rate hike, which will be implemented in three 7% increments, is intended to offset higher operating costs and fund improvements to the electrical grid as infrastructure and supply costs continue to rise.

Why it matters

Pasadena's electric grid is a critical piece of the city's infrastructure, and the rate increases are necessary to ensure the long-term integrity and reliability of the system. As operational costs and capital investment needs grow, the city must adjust rates to generate sufficient revenue to cover these expenses and prevent the power grid from falling into disrepair.

The details

The amendments to the City's Light and Power Rate Ordinance will apply to all Pasadena Water and Power customer classes, including residential, commercial, industrial, and municipal accounts. The rate design process has involved public input and feedback from the Municipal Services Committee and City Council, with revisions made to the original proposals developed by Pasadena Water and Power staff.

  • The City Council conducted the second reading of the ordinance on Monday, April 1, 2026.
  • The rate increases will be implemented in three 7% phases, with the city checking after the second phase to see if the third phase remains necessary.

The players

Pasadena City Council

The governing body of the City of Pasadena, responsible for approving the electric rate hike ordinance.

Pasadena Water and Power

The municipal utility that provides electricity to Pasadena residents and businesses, and developed the rate increase proposals.

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What’s next

After the second phase of the rate increase, city officials will check to see if the third phase remains necessary.

The takeaway

The electric rate hike is a necessary step to ensure the long-term viability and reliability of Pasadena's power grid, as the city faces rising operational costs and the need for significant infrastructure investments. By implementing the increases in phases, the city aims to lessen the impact on residential customers while generating the revenue required to maintain and upgrade the electrical system.