City Council

9.\nMUNICIPAL SERVICES COMMITTEE: ADOPTION OF THE REVISED ENERGY AND CREDIT RISK MANAGEMENT POLICY (Water & Power\nDept.)\nRecommendation: It is recommended that the City Council:\n(1)\nFind that the action proposed in the agenda report is not a “project” subject to the California Environmental Quality Act (CEQA) pursuant to\nState CEQA Guidelines\nSection 21065 and within the meaning of Section 15378(b); and\n(2)\nAdopt the revised Energy and Credit Risk Management Policy (“Policy”) for Pasadena Water and Power (“PWP”) wholesale energy\ntransactions.\nRecommendation of the Municipal Services Committee: On October 28, 2025, the Municipal Services Committee provided guidance on two\nmodifications to the policy that\nare presented in the agenda report. The transaction authorization for the Assistant General Manager of Power Supply was maintained at threemonths for duration and lead time.\nThe reporting frequency was amended to state that the General Manger will report out annually in conjunction with reporting on power supply\nactivities. The report will include the\nscope of activities covered in the current policy.\nStaff also clarified that the scope of the policy is related to power supply transactions that are short-term in nature, as reflected in the transaction\nauthorization table for\nstaff which is limited to be up-to two years. The policy is adopted in alignment with PWP’s priorities which are reliability, responsiveness to\ncustomers, reasonable rates and environmental stewardship.