Redding residents could soon be paying more for their electricity.
Redding Electric Utility announced Feb. 18 it’s proposing a multi-year 4.5% rate hike starting April 1.
That would mean an extra $7 a month for the typical household in the first two years and an additional $8 a month in years three and four, according to a news release.
The utility says it needs yearly price increases to address operational costs due to rising electricity prices and inflation. The utility says strict clean energy mandates from California have also put pressure on it.
“State clean energy and emissions reduction requirements require ongoing investment in renewable resources, grid upgrades, and regulatory compliance, placing additional upward pressure on costs while maintaining reliable service,” the utility said in the release.
Redding Electric says the extra funds would go toward supporting grid reliability and reducing wildfire risk. It says it would do that by modernizing its aging infrastructure.
Redding Electric Director Nick Zettel said he’s mindful that affordability is top of mind for customers.
“In 2025, REU customers saved approximately 150 million dollars by owning their own electric utility when compared to PG&E investor-owned rates,” Zettel said in the release.
According to the utility, the average residential bill for a Redding Electric customer was $160 a month in 2025. The average PG&E residential customer paid about $340 a month.
Because Redding Electric Utility is publicly-owned, it first needs to get permission to raise rates from the City Council.
A public hearing is set for March 3.
