Redding utility customers could pay for higher power bills starting New Year's Day

People living in Redding could see their monthly power bill go up, starting on New Year’s Day ―- the same date their water, wastewater and garbage bills increase.

Redding Electric Utility officials will propose two rate hikes over the next 13 months at a public hearing with the Redding City Council on Dec. 5, said Joe Bowers, the city’s assistant director of resources.

If approved, the average REU customer's bill will go up 4% on Jan. 1, 2024; followed by another 4% jump on Jan. 1, 2025. That translates to $6.75 more per month in 2024, $7.75 more per month in 2025, according to a statement issued by the non-profit utility.

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Money from the rate increase will help pay the utility company's wildfire mitigation costs. While it's important to keep rates down, wildfire protection is REU’s “top priority,” according to the statement.

The money will also help REU keep up with rising costs and inflation on the supply end, utility officials said.

While Redding’s population will likely remain the same over the next five years, the cost of meeting the current population’s power demands will go up by more than $20 million during that same period, according to the statement. That's because carbon compliance costs, supply limits and increased demand for power throughout the western United States is raising prices on fuel and power — especially for natural gas, according to REU.

The additional money will “ensure financial stability, maintain” reliability and help REU “comply with California’s environmentally-friendly energy requirements,” REU officials reported in the statement.

Redding customers could face utility bill hikes at same time as boosts in water, wastewater and garbage bills

If the city council passes the utility bill hikes, Redding residents will see their power bill go up at the same time they are paying more for water, wastewater and garbage services.

The average Redding household's monthly costs for water, wastewater and garbage combined will go up by $16.83 per month in 2024, $10.33 per month in 2025 and again in 2026, and $10.24 per month in 2027, Redding Public Works Director Chuck Aukland said. The Redding City Council passed those rate hikes on Nov. 7.

More: Redding households may face rate boost for water, wastewater and garbage services

The public can attend when REU proposes the rate increases to the city council. The meeting is at 6 p.m. on Tuesday, Dec. 5 in the Redding City Council Chambers, 777 Cypress Ave.

This week, REU will host two public workshops to explain reasoning for the rate increases in detail. Times are:

- 4:30 p.m.  to 6:30 p.m. on Thursday Nov. 16 at REU’s office, 3611 Avtech Parkway

- 10 a.m. to noon on Friday Nov. 17 at the MLK Center, 1815 Sheridan St. in Redding.

Jessica Skropanic is a features reporter for the Record Searchlight/USA Today Network. She covers science, arts, social issues and news stories. Follow her on Twitter @RS_JSkropanic and on Facebook. Join Jessica in the Get Out! Nor Cal recreation Facebook group. To support and sustain this work, please subscribe today. Thank you.

This article originally appeared on Redding Record Searchlight: Redding Electric Utility to propose power bill increases in 2024