Council defers decision on REU rate increases; approves open alcohol containers during Kool April Nights Cruise

In February, Redding Electric Utility proposed a rate increase of approximately 4.5% each year for four consecutive years. Last week the utility agency held public workshops to inform the public of why it believes an increase in billing is necessary to meet its bottom line. 

Redding City Council members had planned to approve or deny the rate increase at last night’s meeting. But after low attendance at the workshops last week, REU Director Nick Zettel requested instead that the council postpone its vote until March 17, giving his team more time to engage in public outreach before a final decision. 

The council agreed, voting 4-1 to have Zettel return to the March 17 meeting, with council member Tenessa Audette casting the lone dissenting vote. 

Last night, council members also heard a presentation from city staff about the possibility of creating a temporary entertainment zone on Hilltop Avenue for three hours during the Kool April Nights Cruise, on April 24. Doing so would allow community members to openly carry alcoholic beverages under specific conditions. Those conditions limit what kind of container can be used as well as the boundaries of the zone.

After some conversation with staff, the council voted unanimously to create the entertainment zone, despite some cautions from staff about potential difficulties in implementing it. Two public commenters weighed in on the decision before the council made their vote, both expressing support. 

Here’s what else to know about the council’s discussion on proposed REU rate increases

In workshops so far, REU has said the contributing factors behind the proposed rate increases relate to the rising cost of doing business — given national inflation rates, tariffs on foreign imports, the effects of new AI data centers on the energy market, and Redding’s obligation to incentivize carbon neutral energy sources under California law. Those factors have also led to an increase in labor costs, an REU spokesperson said during workshops last week. 

But one council member remains skeptical of how much the utility agency is spending on personnel. Council member Audette probed Zettel about labor costs during the council’s brief discussion of rate increases last night. “There’s a few bits of information that I think the public should be aware of,” she began, before stating that in the last five years, the amount REU spends on labor has increased 58% despite no new hires since 2022. The stat was the same one shared by an REU spokesperson with the public last week.

Audette urged REU to reconsider how the municipal utility can cut costs within its own personnel budget to potentially lower the proposed 4.5% rate increase year-by-year. But council member Jack Munns struck a different tone when addressing Zettel, emphasizing that he trusts REU’s director.

Council member Erin Resner supported the idea of postponing the hearing to allow community members more opportunities to decide for themselves how they feel about the proposed increases, and express that to the council at the upcoming public hearing. 

She did not offer her thoughts on the rate hike, but but in a friendly warning to Zettel about how to prepare for the council’s next discussion, she signaled interest in reviewing labor costs.

“There will be questions about personnel,” she said. “I think that every director at this point in time should be prepared for this council to be making … some very serious considerations, and pushing on staff extremely hard.”

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