Update: Redding City Manager Halts REU’s 18% Rate Hike Push

Launches City-Wide Efficiency Review After Voters Rejected Sales Tax Grab

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New Redding manager announces pause on REU rate hike – Shasta Unfiltered

In a stunning reversal that validates months of public outrage and investigative reporting, Redding’s new City Manager, William Tarbox, has officially paused the Redding Electric Utility’s (REU) proposed 18% cumulative rate increase and canceled the March 17 public hearing. Just three weeks into his role, Tarbox announced an “intense operational review” of all city departments at a March 13 press conference at City Hall, flanked by four councilmembers. The move directly addresses the very inefficiencies and backdoor revenue tactics exposed in Shasta Unfiltered’s March 3 exposé, “Redding’s Backdoor Tax Grab.”

Tarbox made his position crystal clear: “Before asking our community to pay more, we must ensure that City Hall is operating as efficiently as possible, and that responsibility begins with City management… Today marks the beginning of a reset in how the City of Redding approaches operational performance.” He emphasized that the review will examine “all processes and internal workflows” to identify savings in efficiency, accountability, and tracking — with decisions based on “complete information and sound operational management.” Tarbox did not rule out using AI tools and promised greater transparency and community communication going forward.

shastaunfiltered.com Redding officially welcomes new city manager, William Tarbox

Councilmember Tenessa Audette, who had been the lone dissenting voice against rushing the rate hikes, praised the decision:

“Our residents made it clear they need relief. Some past decisions left our city on a path that required correction, and our new city manager is committed to taking us in a different direction—one focused on fiscal discipline and putting people first. Canceling the rate increase is part of that reset.”

From Sales Tax Rejection to Utility Rate Squeeze — Now on Hold

This pause comes just months after Redding voters defeated Measure A — the 1% sales tax increase — by a resounding 63-64% in the November 2025 election. City leaders, facing projected $5 million-plus deficits tied to mismanagement under former City Manager Barry Tippin (who retired in October 2025), appeared ready to use REU’s enterprise fund as a slush fund. REU’s Payments In Lieu Of Taxes (PILOT) transfers — already around $6 million annually — could have ballooned if the utility’s profits were artificially inflated through the four 4.5% annual rate hikes (starting April 2026), which would have added $7–8 monthly to average bills and compounded to roughly $190/month by 2029.

As the city tries to cope with a budget deficit, citizens have made it clear they want Redding to find efficiencies within its own ranks before passing on more costs to taxpayers. REU officials had cited $20 million annual power-supply cost spikes, infrastructure needs, and state clean-energy mandates. Critics, however, called it a classic backdoor tax, even though voters had explicitly rejected more direct taxation.

https://www.youtube.com/watch?v=MlOe0LPYSyw

We reached out to Tenessa prior to going to print on this article, and she provided this comment.

“Truly, the people of Redding won the budget war. Instead of the public paying for the excess of government with more taxes and rate hikes, the government is being forced to live within its means.” 

Bloated Staffing, Sky-High Salaries, and a Whistleblower Step Forward

The operational review directly targets the staffing bloat and underutilization that have long been criticized in REU. As detailed in the original exposé and confirmed by public salary data from Transparent California, REU’s top executives continue to command compensation levels far above industry norms for a 45,000-customer utility:

Rank	Position	Base Salary	Notes on Total Comp (est.)
1	Director of Electric Utility (Nicholas Zettel)	$317,222	~$586,514 (incl. benefits + other pay)
2	Assistant Electric Utility Director (multiple positions)	$288,798	High six figures with benefits
3	Assistant Electric Utility Director (Ted Miller)	$277,368	~$542k total comp reported
4	Assistant Electric Utility Director	$270,249	High overtime/benefits common
5	Electric Manager – Energy Management	$267,393	Significant benefits package
6	Assistant Electric Utility Director	$243,597	Mid-to-high six figures total
7	Electric Program Supervisor – Energy Management	$239,025	Elevated due to specialized role
8	Electric Manager – Power Production	$235,471	Includes plant operations oversight
9	Electric Manager – Line	$232,496	Field operations leadership
10	Electric Manager – Operations	$230,910	Day-to-day utility management

REU’s staffing ratio is 4.42 employees per 1,000 customers (199 total staff), 40% higher than Roseville Electric’s lean 2.62 ratio and well above the American Public Power Association (APPA) benchmarks.

A whistleblower has now come forward, confirming earlier reporting and Councilmember Audette’s concerns that REU employees are significantly underutilized. The whistleblower’s account points to duplicative processes, idle time, and excessive overtime as drivers of the utility’s high personnel expenses—costs ultimately passed on to ratepayers.

If you are a current or former REU employee with additional information about staffing levels, underutilization, overtime practices, or any other concerns, we encourage you to come forward. Your identity will be protected. Please reach out confidentially to Contact@shastaunfiltered.com.

Side-by-Side Comparison: REU vs. Roseville Electric (FY 2024)

Metricis	REU (Redding)	Roseville Electric	Key Takeaway
Vertical Integration	Yes (183 MW gas plant + hydro)	Yes (160 MW gas plant + hydro)	Shared model, but REU’s higher costs suggest inefficiency.
Customers	~45,000	~68,400	Roseville’s scale delivers savings
Staffing Ratio	4.42 per 1,000 customers	2.62 per 1,000 customers	REU 40% bloated vs. APPA median
O&M Expense per Customer	~$2,267 (excl. power)	~$1,800	REU’s excess tied to staffing
Operating Income	~$13.6M	$26.1M	Roseville doubles REU’s profit
Carbon-Free Mix	54%	63.2%	Roseville greener and more cost-effective

What Happens Next?

Tarbox has set the review to begin in approximately two weeks. No timeline has been given for any future rate proposal, and he stressed that no rate increase will move forward until efficiencies are exhausted. The city has already signaled better communication with ratepayers — a direct response to the disconnect highlighted in public workshops and social media backlash.

This development vindicates the whistleblower accounts and earlier reporting that REU staff are underutilized while executive salaries remain sky-high. It also delivers the relief residents demanded after rejecting Measure A and facing bills already 60% above the national average.

Bottom line: Redding ratepayers just won a major battle. The new city manager’s swift action proves that public pressure works. The full operational review must now deliver real results — or the next exposé will be even sharper.

Share this update widely. Attend future council meetings. Hold City Hall accountable. The fight for affordable electricity in Redding is far from over — but for the first time in months, the momentum has shifted in favor of residents.