Redding City Council Delays Vote on REU Rate Increases Until March 17
- Elisa Ballard
- 1 hour ago
- 3 min read
March 3, 2026
At the Redding City Council’s regular meeting, Redding Electric Utility (REU) Director Nicholas Zettel presented on the proposed multi-year rate increases. He noted that the two public workshops held on February 26—at noon and 5 p.m. at City Hall on Cypress Avenue—had low attendance.
Zettel recommended postponing the vote until the next council meeting on March 17 to allow for additional workshops at varied times and locations, such as the Mercy Oaks Community Center and Martin Luther King Jr. Center. A new schedule is expected to be released tomorrow.
The council voted 4-1 to delay the decision, with Councilmember Tenessa Audette casting the lone dissenting vote.
Proposed Rate Increases REU is seeking approval for 4.5% annual increases over four years, starting April 1, 2026, and continuing through 2029. These adjustments aim to offset rising costs from power supply, infrastructure maintenance, inflation, and state/federal mandates (e.g., clean energy standards and wildfire mitigation).
For the average residential customer, this would add about $7 per month in the first two years and $8 per month in years three and four, leading to an estimated average bill of around $190 by 2029. Even with these changes, REU expects to remain one of California’s most affordable utilities, with customers projected to save approximately $150 million in 2025 compared to PG&E rates.
Power supply costs are forecast to rise by more than $20 million annually, surpassing $100 million by 2030, driven by factors such as natural gas prices, drought, and clean energy transitions. This proposal follows prior 4% increases in 2024 and 2025, which added $6.75 and $7.75 to typical residential bills, respectively.
Council Discussion and Concerns - Councilmember Tenessa Audette was the only member actively pushing back. She highlighted a 58% rise in personnel costs over the past five years (and 6.9% since last year), despite no new positions added since 2022. Audette requested a deeper analysis of these costs, including whether some positions are tied to the five-year capital improvement plan, and suggested delaying the proposal to year-end to further reduce expenses before burdening ratepayers.
Councilmember Dr. Paul Dhanuka, attending remotely, expressed sensitivity to rate concerns. He encouraged the public to attend the workshops and submit proposals to cut expenses, but emphasized the risk to REU’s bond rating—and potential higher borrowing costs—if financial stability isn’t maintained.
Mayor Mike Littau, along with Councilmembers Erin Resner and Jack Munns, opposed Audette’s delay suggestion and expressed confidence in the city staff’s recommendations. Resner asked Zettel to prepare detailed answers on personnel costs for the March 17 meeting.
During public comment, two residents—Dolores Lucero and Nick Gardner—questioned the need for the increases. Gardner specifically asked why meter reading requires two employees.
Impact of California Laws on Utilities - REU attributes much of the cost pressure to state mandates promoting clean energy, emissions reductions, grid reliability, and wildfire prevention. These requirements drive investments in renewables, infrastructure upgrades, and compliance, contributing to higher rates across California—where electricity costs are nearly double the national average. REU’s claims align with broader trends, as these policies necessitate expensive shifts from traditional sources.
Assistance Programs for Customers - REU offers the Residential Energy Discount Program for low-income households: $20 off the fixed charge and 35% off the first 450 kWh monthly. Eligibility depends on household size (e.g., up to $61,080 annual income for a family of four). About 12% of customers currently participate; all eligible residents are encouraged to apply.
The CARES program provides up to $300 in emergency assistance once every 12 months for temporary financial hardship.
For more details: https://www.cityofredding.gov/government/departments/utilities/customer_service/payment_assistance_programs.php
Other Action - The council unanimously (5-0) approved the Hilltop Entertainment Zone for the Kool April Nites Cruise event on April 24, 2026. This allows alcoholic beverages purchased along Hilltop Drive to be consumed outside in clear plastic containers within the marked zone.