City Council

9. MUNICIPAL SERVICES COMMITTEE: ADOPTION OF THE REVISED ENERGY AND CREDIT RISK MANAGEMENT POLICY (Water & Power Dept.) Recommendation: It is recommended that the City Council: (1) Find that the action proposed in the agenda report is not a “project” subject to the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 21065 and within the meaning of Section 15378(b); and (2) Adopt the revised Energy and Credit Risk Management Policy (“Policy”) for Pasadena Water and Power (“PWP”) wholesale energy transactions. Recommendation of the Municipal Services Committee: On October 28, 2025, the Municipal Services Committee provided guidance on two modifications to the policy that are 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. The reporting frequency was amended to state that the General Manger will report out annually in conjunction with reporting on power supply activities. The report will include the scope of activities covered in the current policy. Staff 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 authorization table for staff which is limited to be up-to two years. The policy is adopted in alignment with PWP’s priorities which are reliability, responsiveness to customers, reasonable rates and environmental stewardship.