City Council Reconsiders Electricity Rate Increase
The City Council has abandoned a proposal by the city manager to increase residential electricity rates by 28% over the next two years and will consider alternatives ranging from no increase to a hike of nearly 30% over five years.
After deciding Monday night to drop the city manager’s proposal, council members said they will vote next week on how much the rates should increase.
City officials said a $156-million debt needs to be paid off so the city-owned utility can compete when the industry deregulates in the next few years. In 2002, Pasadena will allow its customers to purchase from any provider.
A council subcommittee consisting of council members Paul Little, Sydney Tyler and Joyce Streator is recommending a 29.5% increase in residential rates over five years. Mayor Chris Holden has supported a consultant’s proposal that would raise rates 25.4% over five years.
Councilwoman Ann-Marie Villicana opposes an increase and wants the city to end an annual $6-million transfer from the power company to City Hall.
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