Pasadena : Hearing on Electricity Rates

The Board of Directors on Tuesday scheduled a public hearing on a proposed electric rate hike that would increase the average household’s monthly bill by $1.96.

The board will listen to public testimony on the matter beginning at 7 p.m. during its meeting Tuesday.

Under the proposed change, a typical single-family home using 400 kilowatt hours of electricity monthly would pay $35.42, a $1.96 increase from the current $33.46 charge. A commercial customer using 2,000 kilowatt hours per month and now paying $173.90 would pay $187.15.

The increase, slated to take effect May 1, would enable the city-run electric utility to partially fund a two-year, $39.8-million capital improvement program. In addition, the increase would help fund the transfer of $6.4 million from the Power Fund to the General Fund next year.

In a related action, the board tentatively approved an ordinance setting such yearly transfers at 8% of the gross retail income of the Power Fund. Previously, the amounts of such transfers have fluctuated based in part on city operating needs.

However, the city’s Utility Advisory Commission asked directors last year to set a more consistent transfer amount in order to ensure the financial independence and stability of the city’s Water and Power Department.

Under the ordinance, the General Fund would receive $6.4 million next year, $7.7 million in 1992 and up to $9.7 million in 1995. Final approval requires a second vote of the board.