Electric Cost-of-Service Analysis & Rate Design Study

The City of Pasadena's Water and Power Department (PWP) is seeking an experienced technical and financial consulting firm to complete a comprehensive Electric Cost-of-Service Analysis (ECOS) and develop a robust financial model and rate structure. PWP serves approximately 66,400 customers (57,800 residential and 8,600 commercial) across a 23-square-mile service area with approximately 92 miles of 34 kV subtransmission circuits, 408 miles of 17 kV power lines, 263 miles of 4 kV distribution lines, and 13 substations. In Fiscal Year 2023, PWP's power sales totaled approximately 1,073 GWh with revenues of $213 million.

The project aims to develop a near-term rate restructuring proposal that ensures revenue adequacy and fair cost allocation while balancing customer affordability. The resulting rate structure must reflect Pasadena's forward-thinking policy goals including the city's commitment to convert to 100% Carbon-Free Energy by 2030. The consultant will explore rate structures and pricing incentives that accommodate clean energy technology, customer-owned generation and storage devices, and bi-directional electrical grid usage. The work must comply with California law and current rate ordinances.

The consultant will develop a comprehensive financial planning model that supports rate design under different scenarios and facilitates future decision-making as conditions change. The model will incorporate iterative design components to ensure PWP maintains resilient financial resources for long-term sustainability. The project will also require extensive public engagement to build understanding and support for the chosen rate design.

Key dates: Questions and answers deadline is January 9, 2024 at 4:00 PM (PST). Proposal submission deadline is January 22, 2024 at 8:00 PM (PST). The RFP was released on December 1, 2023.