Redding Electric Utility told the Redding City Council on Oct. 6 that its reported cash position was stronger than its underlying finances suggest, setting up a future discussion about utility rates but not a rate change.
In its FY 2025-26 financial report presented to the council, REU reported $166 million in operating revenue, $19.8 million in capital investment and 111 days of cash on hand. That was above the utility’s 75-day policy level but below its 150-day target, according to the presentation. The council accepted the report.
REU Director Nick Settle said the cash figure included $22.4 million in one-time funds: $19.6 million in bond proceeds and $2.8 million in cap-and-invest funds used to buy renewable-energy credits. Without those funds, Settle said, the utility would have about 55 days of cash on hand and a structural revenue deficit.
Settle said power-supply and infrastructure costs are expected to rise and that the utility needs to address longer-term revenue requirements. He said he planned to return for a detailed rate-setting discussion, emphasizing that the upcoming presentation would not include a rate-increase decision. Councilmember DeNuke said delaying the rate-setting exercise would only postpone the issue.
The presentation also included an analysis of bringing the outsourced utility call center in-house. Staff estimated recurring savings of about $300,000 annually after the transition and about $1.5 million over five years. The council took no action on that analysis; staff said a formal proposal would come back for future approval.
The meeting record does not identify a rate schedule, timing for a formal rate case or projected customer bill impacts.
