It is hard to find a commodity, service, or even a happy meal that hasn’t increased in price since 2016, yet the electric rates in the City of Redding have remained the same. That may soon change. Taken from a recently released information sheet, according to Redding Electric Utility (REU) the Redding City Council will be presented with proposed rate increases at the council meeting on December 7th.
If passed, the average household will see an average monthly increase of $3.00 beginning in January of 2022 and another $3.00 monthly increase in January of 2023. In an effort to soften the blow for income-eligible customers, the utility is also proposing to bolster the benefit for Residential Energy Discount Program participants. Enrolling in this program can save qualified customers up to $408 per year.
Commercial customers can (CLICK HERE) to utilize a calculator to determine how the proposed rates may affect your monthly energy costs.
Over the past couple months, Redding Chamber of Commerce was represented on a Rates Committee to examine the rates proposal and give input to the utility. Our conclusion is that, while mindful that any increase has a potential adverse effect on local businesses ability to make ends meet, the proposal is logical and justified. It is important that REU remain viable and able to meet the demands of an evolving and heavily regulated industry. Just as the private sector must adjust prices to invest in operational needs, capital improvements, replacement reserves, and more, the community-owned utility must do the same to be able to provide the reliable, cost-competitive energy to businesses and residences alike.
If you would like to hear more on this proposal, listen to a recent podcast with REU Finance Manager, Joe Bowers, by (CLICKING HERE).
If you have questions, I am happy to connect you with our contacts at REU for a personalized commercial energy use consultation for your business.
President & CEO