City of Redding approves cancellation of REU rate increases
REDDING, Calif. - Redding Electric Utility said they are bringing their customers good news going into the Christmas season after the Redding City Council approved the cancellation of planned rate increases Tuesday night.
REU's long-term financial plan called for an increase of 1.5 percent in 2018 but due to new contracts, reorganization, increased interest income, and refinanced bonds, there is now enough money to cancel the increase.
There's also another perk coming for all 44,000 customers.
For the last ten years, there's been a solar surcharge on each bill. REU has collected over $9 million from that program and the council voted to eliminate that charge as well. That's $3 million that won't be paid by REU customers in 2018.
"So, that's good news and that's one of the benefits of being owned by the community," said REU'S Chief Financial Officer, Mark Haddad. "We're not trying to pad our pockets or our shareholders pockets. Everything we save goes to benefit the community at large."
Haddad said last year alone the difference in being community owned saved customers $42 million total.
He said the conversation of increases in the future won't come up again until 2020.