Redding Electric Utility proposes multi-year hike in electricity costs
With the aim of improving aging infrastructure and keeping up with factors such as inflation and California clean energy mandates, REU is proposing a 4.5% increase in utility costs each year, over the next four years, starting in April.
On March 3, 2026, the Redding City Council will hold a public hearing to discuss a proposed increase in city residents’ electric bills. If the city approves the Redding Electric Utility’s recommendation of increasing costs by 4.5% annually for four consecutive years, people will see a change in their bills starting April 1.
The rate hike would cause the average residential customer’s bill to increase by approximately $7 per month for the first two years, and an additional $8 per month over the next two. According to REU, the average household will be paying around $190 monthly by 2029.
For those enrolled in the Residential Energy Discount program, a special program for those with eligible incomes, rates would increase $1 in the first two years on a monthly basis, and an added $2 per month for the remaining two years.
An REU press release today stated that Redding’s electricity rates will continue to be one of the most affordable in the state, even with the increase. REU Director Nick Zettel emphasized in the release that “affordability is one of our primary goals—along with reliability.”
On a state level, Californians pay some of the highest rates of electricity in the nation, and lowering utility bills has been a major issue in at least one gubernatorial campaign in the upcoming election.
Increasing electricity prices around the state — due in part to the need for PG&E to find a way to pay for settlement costs related to wildfire damage and utility upgrades to prevent new wildfires — have put a significant strain on working class Californians. But as a municipal utility agency, REU’s cost structures don’t reflect PG&E’s financial woes.
REU cited that some of the revenue gained from the proposed hike would address local issues — such as improving aging infrastructure, and investing strategically in improvements to prevent costly emergency repairs in the future.
Other factors necessitating the rate hikes are larger than Redding, the press release indicated. REU cited inflation, weather variability, and California’s clean energy mandates that require municipalities to invest in renewable resources, saying all three factors create new costs.
The City of Redding’s website outlines the details of the proposed increase, and provides supporting documents such as an example bill calculator to help residents better understand how this potential hike could affect their pocketbooks. It also includes speculative figures for small and large businesses, who like residential users, could see rising monthly rates according to their monthly usage.
Ahead of the March 3 council meeting where public input will be welcomed, there will be two workshop opportunities for local residents to learn more about the proposed increase. Both will be held on Feb. 26 — one at 12 p.m. and the other at 5 p.m.
2.19.26 3:45 pm: After several emails seeking clarity from city staff, we’ve confirmed that the rate increase is 4.5% annually, something not clear in the original press release. The story has been updated.
Do you have a correction to share? Email us: editor@shastascout.org.
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The answer should be, ought to be, must be NO. Wages (plus benefits and pension costs) are crushing the budgets across the board. At a minimum, REU management should prove in detail (not just say) that they have gone to the mat to avoid any additional rate increases. They should be very clear why so many REU positions pay $200k+ when the rest of us are scrimping to keep energy bills sane. AND.. I don’t want to hear a word about what PG&E does or charges, PG&E mismanagement have jacked rates to be among the highest in the nation. I would urge all of you to contact your city council and demand that they hold REU accountable to publically justify (with details) why we should pay more, instead of them cutting back.
Agreed and well said! I feel like it is a forgone conclusion that the rate hike will pass but I agree about not comparing things to PG&E. Just because they have mismanaged things isn’t a reason for REU to raise rates. Reduce REU’s bloated leadership staff salaries. They have an excess of managers and sub-managers all making exorbitant salaries. $228k salary for a resource manager? $230k salary for a technology manager? $142k for an analyst? I can see the rationale for skilled positions like engineers etc but most of these are way out of control.
You can also write a letter of protest. Send to City of Redding 777 Auditorium dr. If 50 percent object they cannot raise rates.