Redding utility proposes 6% electric-rate increases in 2027 and 2028

Redding Electric Utility is proposing 6% electric-rate adjustments in each of 2027 and 2028, with the first increase beginning with the Jan. 1, 2027 billing cycle. The updated proposal released by the City of Redding has not been approved by the City Council.

For a residential customer using 800 kilowatt-hours per month, REU estimates the proposed changes would add about $10 to the monthly bill in each of the first two years. Actual impacts would vary by rate schedule and usage, the utility said. Because implementation would begin a year later than under the earlier plan, REU estimates the proposal would result in an approximately 12% cumulative three-year increase, compared with 13.5% under the earlier proposal.

The utility said it reduced operating expenses, deferred or reprioritized capital projects and updated its financial assumptions after the council postponed consideration of the earlier proposal. REU also cited rising power costs, aging infrastructure, inflation, tariffs, California clean-energy mandates and regulatory requirements as ongoing pressures. Annual power costs, including operations at the Redding Power Plant, are projected to increase by more than $20 million and exceed $100 million by 2030, according to the utility.

The proposal would also expand the Residential Energy Discount program. The income-eligibility threshold would rise from 60% to 80% of Shasta County median income, as established by the California Department of Housing and Community Development. REU said the program currently assists about 3,600 households and would receive increased funding under the proposal. For RED customers using 500 kilowatt-hours per month, the utility estimates bill increases of 45 cents per month in the first year and 21 cents in the second year.

The City Council is scheduled to hold a public hearing on the proposal at 6 p.m. Nov. 17, 2026, in the council chambers at 777 Cypress Ave. REU has also scheduled public workshops for Oct. 22, Oct. 27, Nov. 4 and Nov. 12. The utility said a virtual workshop will be added, but the date and time had not been announced in the release.