Public Utilities 2025/11/19CITY OF ANAHEIM
PUBLIC UTILITIES BOARD
MINUTES
November 19, 2025
The agenda having been posted on Thursday, November 13, 2025, the Regular Meeting of the Public Utilities
Board (Board) was called to order by Chairperson J. Seymour at 5:00 p.m. on Wednesday, November 19, 2025,
in the Gordon Hoyt Conference Center, 2nd floor, Anaheim West Tower, 201 S. Anaheim Blvd., Anaheim,
California.
Board Members Present: Chairperson J. Seymour, Vice -Chairperson A. Pham, M. Lee, A. McMenamin,
T. Ibrahim, I. Castillo
Board Members Absent: (One Board Member seat is currently vacant)
City Staff Present: D. Lee, B. Beelner, C. Parker, J. Lonneker, J. Lehman, M. Avelino -Walker,
A. Lee, P. Starr, M. Seifen, A. Nguyen, C. Pereyra, E. Krause, N. Le, J. Duenas,
T. Mardikian, C. Ghaby, J. Taulbee
Guests Present: None
AGENDA ITEM ACTION TAKEN
1. PUBLIC COMMENTS.
2. APPROVE THE MINUTES OF THE REGULAR MEETING OF
OCTOBER 22, 2025.
3. PRESENTATION: FINANCIAL UPDATE & PROPOSALS.
A. Nguyen, Utilities Financial Planning Manager, provided a financial
update, highlighting financial strategies for the Water Utility, along with
financial metrics. Key cost drivers affecting the water utility include
legislative and regulatory requirements, as well as regional and local
investments to expand water supplies and improve drought resiliency.
A. Nguyen described a proposal to adjust the Water Commodity
Adjustment (WCA) and Water System Reliability Adjustment (WSRA),
There being no electronic or oral
public comments, Chairperson
J. Seymour closed the public
comments portion of the
meeting.
M. Lee moved the approval of
the Minutes of the Regular
Meeting of October 22, 2025.
A. McMenamin seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 0.
2025 - 79
citing the need to recover higher costs associated with purchasing,
treating, and delivering water; meeting legislative and regulatory
mandates; and continuing to fund water infrastructure replacements and
upgrades. The proposed water rate adjustment would increase the typical
residential bill by approximately $4.32 per month, based on use of about
12,000 gallons per month. B. Beelner, Assistant General Manager —
Finance and Energy Resources, clarified that the proposal does not
include costs associated with labor or pensions.
Discussing water affordability, A. Nguyen highlighted the importance of
Anaheim's groundwater basin in keeping water costs lower than in
regions more dependent on higher cost imported water.
The Board asked for clarification on the revenue percentage allotted for
the WCA and how it impacts the typical residential monthly bill. B.
Beelner shared that the WCA is necessary to recover higher water supply
costs including the cost to purchase, move, and treat water. The Board
inquired about the costs associated with maintaining regulatory
compliance. C. Parker, Assistant General Manager — Water Services,
explained that regulatory compliance consists of costs associated with
groundwater treatment, including monitoring and testing water and result
submittal to the State of California. B. Beelner explained that such
requirements are integral to operating in a highly regulated industry and
that investments in groundwater treatment facilities illustrate how state
and federal mandates influence both operating and capital costs.
The Board inquired if the Water Utility's Days Cash on Hand will
continue to trend in the same direction for fiscal year (FY) 2026. A.
Nguyen noted that cash from operations has been used to fund capital
improvements and that bond proceeds from last year's issuance will
provide an additional source of capital funding, allowing operating cash
balances to increase. The Board asked if Anaheim Public Utilities (APU)
aims to be above the 120-day target and asked for clarification on the
financial impact if the target is missed. B. Beelner explained that hitting
below the 120-day target could impact APU's credit rating and
operational flexibility during a major event. APU has additional liquidity,
including a Line of Credit (LoC) that can be utilized by APU.
A. Nguyen updated the Board on the Electric Utility's financial
performance, describing that issuing bonds with early redemption options
and refinancing them to achieve savings has been helpful in maintaining
customer affordability while investing in reliability initiatives. B. Beelner
shared that the Electric Utility has a plan to lower the Days Cash on Hand
trend to meet the 140-day target and clarified that it will be used to fund
planned capital improvement projects.
A. Nguyen reviewed a typical residential electric bill, showing that
Anaheim customers pay nearly half of what customers in neighboring
cities pay. A. Nguyen explained this difference by noting Anaheim's
lower wildfire risk, its not -for -profit structure that is a different business
model than investor -owned utilities.
2025 - 80
The Board asked whether other municipal utilities exist in the region and
how their rates compare. D. Lee, Public Utilities General Manager,
responded that APU is the only municipal electric utility in Orange
County and that, while several factors influence each agency's rate
structure, municipal utilities generally have lower rates than their
investor -owned counterparts. The Board inquired why Southern
California Edison (SCE) does not provide power to Anaheim. D. Lee
shared that SCE previously provided power to Anaheim but was sued by
Anaheim to obtain access to the City's power supplies and purchase
power. B. Beelner clarified that APU owned the distribution
infrastructure, but the lawsuit resulted in separating from SCE as
Anaheim's power supplier.
The Board inquired if APU's rates are the same for residential and
commercial customers. B. Beelner explained that the rate structures are
different due to differences in energy usage. D. Lee shared that residential
customers are not subsidizing commercial customers because 75% of
APU's electric revenue comes from commercial customers, even though
10% of APU's customers are commercial businesses. The Board inquired
if the proposal includes an electric rate increase, and B. Beelner stated
there is no electric rate increase being proposed.
4. SET A PUBLIC HEARING DATE, TIME, AND LOCATION TO
CONSIDER PROPOSED MODIFICATIONS TO WATER RATES
CONTAINED IN THE WATER RATES, RULES AND
REGULATIONS. **
B. Beelner recommended the Board establish the date, time, and
location for a water rate hearing, and added that APU mails public
hearing notices at least forty-five days prior to the hearing date. B.
Beelner recommended that the hearing be held on February 25, 2026
5. REVISED FISCAL YEAR (FY) 2024 AND FY 2025 WRITE-OFF
OF UNCOLLECTIBLE UTILITY ACCOUNTS AND CUSTOMER
ASSISTANCE PROGRAM UPDATE.
J. Lehman, Assistant General Manager — Administration and Risk
Services, provided an update on APU's uncollectible debt. J. Lehman
shared that APU works with customers to help keep overdue accounts at a
manageable level, otherwise these costs are shifted to the other customers.
The uncollectible debt includes amounts related to electric, water, sewer,
sanitation, and FireMedics services, and that for fiscal year (FY) 2025, the
net write-off was just over $1.8 million.
T. Ibrahim moved the
recommendation to establish
February 25, 2026, at 5:30
p.m., or as soon thereafter, in
the Gordon Hoyt Conference
Center, 2nd Floor, Anaheim
West Tower as the date, time,
and location for the Board to
conduct a public hearing. A.
McMenamin seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 0.
2025 - 81
J. Lehman highlighted that an issue with the FY 24 write-off was
discovered in preparing this year's report that resulted in a lower write-off
amount being reported last year. This was a timing issue within the
system that caused accounts that received state funding to not be included
in the appropriate FY write-off. It was corrected in this year's report, and
the revised numbers are shown alongside the previously reported write-
off numbers for FY 24. J. Lehman noted that the overall trend for write-
offs is still decreasing, and that the write-off percentage of approximately
0.3% of sales is in line with industry standards.
As a not -for -profit organization, APU has various rebates and incentive
programs to help assist customers with their utility usage and bills. These
programs include senior, military veteran, long-term disabled, and
medical lifeline discounts for customers who meet the income
qualifications. APU offers payment plans, bill extensions, home utility
surveys, level payment plans, and monthly billing options. APU also
offers emergency bill assistance once every three years. Additionally,
APU has partnerships with other agencies and organizations who help
residents with bill assistance. Collectively, in FY 25 approximately $3.1
million went directly towards bill assistance.
The Board inquired if APU has a breakdown of the write-off between
residential and commercial customers. D. Lee responded that residential
customers represents about 80% of these costs and commercial customers
represent about 20%. The Board inquired about APU's practice to recover
bad debt from commercial properties. D. Lee responded that APU works
with a collection agency when necessary to seek cost recovery.
The Board asked what percentage of revenue was represented by bad
debt. J. Lehman responded that bad debt represents about 0.3%. D. Lee
explained that following the pandemic, since disconnections were
suspended, customer's past due balances increased due to lack of payment
or bill acknowledgment by both residential and commercial customers. As
a city -owned, not -for -profit utility, APU resumed disconnections to
recover the costs without significantly impacting the remaining
customers. The Board inquired if APU's protocol includes sending the
entire bill to collections, as opposed to just the utility charges for water
and electric. J. Lehman confirmed that APU submits the entire bill to
collections on behalf of the other City departments.
The Board inquired about the write-off period, and whether the bad debt
is written off prior to the start of the new FY. D. Lee confirmed that
APU's FY write-off period covers July 1st through June 30m; although,
APU continues to recover costs previously written off prior to the current
FY.
6. RECOMMEND APPROVAL OF A SOFTWARE SERVICE I. Castillo moved the
AGREEMENT WITH ASCEND ANALYTICS LLC FOR recommendation to approve the
RESOURCE PORTFOLIO PRODUCTION COST MODELING professional services agreement
SOFTWARE, WITH AN INITIAL TERM OF FIVE YEARS AND with Ascend Analytics LLC.
UP TO FIVE ONE-YEAR OPTIONAL EXTENSIONS, AT A NOT-
2025 - 82
TO -EXCEED COST OF $956,005 FOR THE INITIAL TERM AND
AN ANNUAL NOT -TO -EXCEED COST OF $182,209 FOR THE
FIRST EXTENSION WITH AN ANNUAL 4% ESCALATOR FOR
REMAINING EXTENSIONS, PLUS A 15% CONTINGENCY FOR
AS NEEDED EXTRA SERVICES. *
B. Beelner briefed the Board on the proposed software service
agreement with Ascend Analytics LLC (Ascend) and explained that the
software will provide modern production cost modeling capabilities and
support optimization of future assets such as Battery Energy Storage
Systems (BESS). B. Beelner explained that the current system cannot
adequately handle BESS integration, and a new modeling software is
needed. B. Beelner noted that as APU progresses toward 60% renewable
energy by 2030 and carbon -free energy by 2045, effective utilization and
economic optimization of BESS resources will be essential for
evaluating portfolio costs and future resource additions.
The Board inquired if ongoing legislative and regulatory policy changes
require APU to make continuous system and software upgrades
necessary to remain compliant. B. Beelner confirmed, and D. Lee added
that APU's increasingly intermittent resource mix and the age of the
existing 14-year-old system make upgrades critical.
The Board asked if Ascend will primarily manage the new software. D.
Lee clarified that APU performs the production cost modeling internally
but requires Ascend's software platform and technical expertise. E.
Krause, Integrated Resources Manager, shared that the current system is
similar, but cannot sustain an additional 300 Megawatt (MW) BESS.
The Board asked if APU would utilize this system frequently, such as on
a daily basis. B. Beelner stated that the software is used regularly for
forecasting and modeling, and D. Lee added that the complexity of
current energy planning exceeds spreadsheet capabilities. The Board
inquired if every city in the State is required to comply with the same
state -mandated renewable resources targets. B. Beelner shared that the
entire State must comply with the state -mandates. D. Lee shared that
some cities have increased their renewable energy targets to exceed
requirements, but at this time APU's plan is to comply with the State's
targets, along with the support of the community to produce clean
energy while reducing pollution and maintaining affordable rates. J.
Lehman, added that smaller municipal utilities, like APU, are finding
ways to meet the requirements without the same advantages of other
utilities throughout the State. Additionally, APU offers customers the
opportunity to opt -in to participate in APU's Green Power Program, a
voluntary program that allows residents and businesses to contribute to
purchase and receive a higher amount of green power.
The Board inquired whether public utilities are rated on the efforts put
toward providing renewable energy. J. Lehman shared APU is not rated;
however, information regarding APU's Renewable Portfolio Standard
(RPS) and Power Content Label (PCL) is available for the public on
APU's web site.
A. McMenamin seconded the
motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 0.
2025 - 83
7. ADOPT THE PROPOSED PUBLIC UTILITIES BOARD
MEETING SCHEDULE FOR THE 2026 CALENDAR YEAR. **
8. UPDATE ON ELECTRIC SYSTEM ITEMS.
J. Lonneker, Assistant General Manager — Electric Services, shared that
a recent power outage was the result of a vehicle collision with of one
APU's utility poles. APU's Electric Operations received a call from
Anaheim Fire and Rescue (AF&R) requesting to de -energize the circuit,
requiring a troubleshooter to isolate the area until the accident was
cleared. APU successfully restored 80% of the affected customers within
30 minutes of the outage. Electric crews were restricted access during
the Anaheim Police Department's (APD) investigation, but restored all
but two customers within five hours, and ultimately completed necessary
restoration efforts at approximately 10 hours following the incident. J.
Lonneker highlighted the collaboration between APU, AF&R and APD
to safely restore power to the affected community.
J. Lonneker then provided an overview of power outages that occurred
during the four -day period of heavy rains. APU experienced seven
outages, averaging approximately 29 minutes per customer. APU staff
was on standby and prepared to quickly respond to outages resulting
from switch and transformer equipment failures, palm frond across
power lines, and a broken electric crossarm.
J. Lonneker provided an update to the Board regarding the installation of
street lighting near Pearson Park, stating 21 colony style lights were
installed. APU received inquiries from residents, including Board
Member A. McMenamin, representing District 3, about the lighting
proj ect.
9. UPDATE ON WATER SYSTEM ITEMS.
C. Parker briefed the Board on the current Water Supply Dashboard, and
shared that rainfall is currently above average for this time of year. The
Orange County Groundwater Basin remains full and in good condition.
The State Water Project (SWP) is in good condition as well, with rainfall
to date about average. The Colorado River Basin is still strained due to
ongoing negotiations between the seven states, with February 2026 as
the target to complete negotiations. The Metropolitan Water District of
Southern California (MWD) is in good shape with in -system storage at
3.8 million acre-feet (MAF), which is two to three years of annual
supply to Southern California.
T. Ibrahim moved the adoption
of the Proposed Public Utilities
Board Meeting Schedule for
the 2026 Calendar Year.
Vice -Chairperson A. Pham
seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT: 0.
2025 - 84
C. Parker shared that MWD hosted a Colorado River Aqueduct
Inspection trip for APU and the Western Municipal Water District. C.
Parker also informed the Board that APU received WaterWorld's 2025
Top Projects Award for the Phase A Groundwater Treatment Plants.
The Board asked about the Federal Government's involvement in the
Colorado River negotiations. C. Parker stated that the Federal
Government prefers that negotiations stay among the seven states, and
shared that California would fare well due to its superior water rights.
10. UPDATE ON FINANCE AND ENERGY RESOURCES ITEMS.
B. Beelner shared that the Finance Dashboard for the period ending
October 31, 2025, was not generated due to the month -end closure right
before the Board's regular meeting date.
11. UPDATE ON ADMINISTRATION AND RISK SERVICES ITEMS.
J. Lehman updated the Board on the Internal Compliance Plan that
provides a summary of activities that APU undertakes on a regular basis
to ensure compliance with applicable laws and regulations. J. Lehman
highlighted that APU received a penalty during this reporting period due
to the late submission of a power supply plan to the California
Independent System Operator (CAISO). The CAISO assessed a $500
penalty for the one -day late submittal. The submittals are uploaded
electronically through a web portal and the staff who uploaded it
believed the file had been submitted successfully; however, the upload
failed. Procedures have been updated to require staff to verify that
submittals have been received to prevent recurrence of a similar
incident, and staff has been appropriately trained on the revised
procedures.
J. Lehman briefed the Board on the 2025 State Legislative Update
Report (Report). J. Lehman shared that over 2,800 bills were introduced
this year, and of the bills that APU was tracking about 40 were passed
into law; however, not all of them impact APU. J. Lehman stated that
the most impactful bills that passed this year include:
• AB 1207 — Cap and Invest: Extension of Former "Cap and
Trade" Program, that was supported by APU with economic
benefits from the current program continuing; and
• AB 825 — Approval of the Pathways bill for the creation of an
independent regional transmission organization.
J. Lehman highlighted several bills that APU will be following closely
next year:
• SB 350 - AB 532 — Low -Income Rate Assistance (LIRA): Water;
these bills are being watched by APU;
• AB 1218 — Metal Theft Prevention Efforts: This bill is being
supported by APU;
• AB 301 — Small Nuclear Reactor Exemption: This bill is being
watched by APU.
2025 - 85
The Board inquired if the $950 threshold for copper theft applies to the
cost incurred by the utility, or if it's the amount based on the price the
stolen metal is sold for. J. Lehman shared that the $950 is the amount of
material that is the determining factor between a misdemeanor and
felony.
The Board asked if APU has considered the development of nuclear
production. D. Lee shared that APU monitors other utilities involvement
regarding nuclear but has not taken it into consideration due to the issues
related to spent fuel.
J. Lehman also mentioned that there may possibly be a bill next year on
the Delta Conveyance Project as the governor held a press conference
earlier this year stating that a bill would be coming. It is expected that
this would be beneficial to APU.
J. Lehman then shared the safety metrics, which were trending
positively, and added that APU had no reportable injuries during this
reporting period. J. Lehman explained that APU continues to provide
training to help minimize injuries. J. Lehman shared that APU's Water
and Electric Services Divisions received the National Safety Council
Occupational Excellence Achievement award. J. Lehman shared that APU
water staff recently conducted a joint vault rescue training with AF&R.
12. ITEMS BY SECRETARY.
D. Lee informed the Board that Mayor Aitken appointed Board
Member -Elect Hemant (Shashi) Kewalramani to the Public Utilities
Board.
D. Lee shared that the Board would receive an invitation from the City
Clerk's Office for Brown Act training that would be held on December
2nd as well as an invitation for the Annual City Boards and Commissions
Recognition Dinner scheduled for December 1 lth at the Anaheim
Convention Center.
D. Lee shared agenda items planned for next month:
• Water System Reliability presentation;
• Two Agreements are in development: Wind Power Sales
Agreement and Residential Energy Efficiency Programs.
D. Lee shared the following updates:
• A regional public utility conference included state officials and
J. Lehman also spoke at the conference;
• APU participated in a Mobile Family Resource Center event
hosted by the Community Services Department, to offer bill
assistance and resource information;
• APU hosted a Water Resource Event at the Pondarosa Family
Resource Center to educate the public about water quality;
• APU participated in Halloween events, including Anaheim's Fall
Festival Parade; and
• APU participated in the Veteran's Day ceremony.
2025 - 86
Lastly, D. Lee requested that the Board meeting be closed in memory of
Ramon Castellon, a former APU employee who started in 1985 as a
sanitation worker for the Public Works Department, transferred to APU
in 1989, and retired as a Utilities Troubleshooter in 2020.
13. ITEMS BY BOARD MEMBERS.
I. Castillo thanked APU's electric staff for assisting with the
replacement ofSouthern California Edison wood poles in his
neighborhood.
T. Ibrahim and A. McMenamin wished everyone a Happy Thanksgiving.
Vice -Chairperson A. Pham shared that he attended the Fall Festival
Parade, noting that he appreciated the fun and educational message that
APU put on the float.
Chairperson J. Seymour wished everyone a Happy Thanksgiving.
14. ADJOURN: (NEXT REGULAR MEETING ON DECEMBER 17,
2025 AT 5:00 P.M.) * *
Chairperson J. Seymour asked for a moment of silence in memory of
R. Castellon.
ectfully mined,
l
Dukku Lee
Public Utilities General Manager
T. Ibrahim moved to adjourn the
Regular Meeting in the Gordon
Hoyt Conference Center at 6:21
p.m. to the Board's Regular
Meeting date of December 17,
2025, at 5:00 p.m. I. Castillo
seconded the motion.
MOTION CARRIED: 6-0.
ABSTAINED: 0.
ABSENT. 0.
*Indicates voting item(s) that will be forwarded to City Council for action upon recommendation by the Board.
**Indicates voting item(s) that do not require further approval actions.
2025 - 87