Glendale Water and Power recently announced it will introduce an increase in electricity rates of more than 6 percent in the coming years as it looks to bring in about $13 million every year to cover higher operating costs, the Glendale News Press reports.
According to the news source, the rate hike is still subject to approval from City Hall, however other city officials have given the raise the OK, and said that without the 6 percent figure, necessary capital improvements will be delayed. The move to raise rates came after Fitch Ratings found that the utility would need to boost rates in order to keep revenue high for the electric arm of the company.
The City of Glendale plans to hold four meetings to hear feedback about the proposed rate increase before it goes under the microscope of the Glendale Water and Power Commission. If it passes there, it will find its way to the City Council for approval later this summer.
Residents of California, which has introduced energy deregulation laws to a certain degree, could benefit from fully deregulating electricity, would see enormous benefits from a more competitive energy market. With more retail energy providers, Californians would see lower rates, as energy providers battle for customers.