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Steep Electricity Rate Hikes Expected In Glendale
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Topline:
Glendale Water & Power will raise electricity rates by about 14.8% on Dec. 1, followed by an average hike of 11.3% on July 1 in 2024 and 2025. The hikes will fund the city’s Grayson Repowering Project, the Biogas Renewable Generation project in Scholl Canyon, a solar project and cover general increases in costs of renewable energy, power and fuel.
The projects: According to Dave Davis, the city’s utility finance manager, the Grayson Repowering Project — which will replace old equipment at the Grayson power plant — is expected to cost the city $530 million. The Scholl Canyon project is expected to generate approximately 12 megawatts of renewable energy for the city and will cost around $70 million.
Around $500 million for these projects will be derived from the issuance of bonds, which the electric rate hikes will pay for. The remaining $100 million for the projects will come from the city’s cash reserves.
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Who bears the brunt: Rate increases will vary depending on whether the customer is residential or a small, medium or large business. In the next phase of the Cost of Service Analysis (COSA), staffers will work with energy consultant NewGen to determine the rate increase per the customer class.
A graph shown Monday at a GWP community meeting shows how residential users and small businesses might see steeper rate increases than large businesses. Residential and small business users could see a 18-20% increase, while large businesses would see a 10% increase.
What's next: The GWP is holding two more community meetings for residents to learn more about the rate hikes. One is on Oct. 18 from 6:30 p.m. to 8 p.m. at the Glendale Police Community Room and on Oct. 19 at 6:30 p.m. to 8 p.m. at the Sparr Heights Community Room.
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