City Considers Rate Hikes Starting 2025
City of ColtonColton, California (Times Media Service) – The City of Colton is grappling with a significant financial challenge as its electric utility faces a $24 million deficit. In response, city officials are considering implementing rate increases from 2025 to 2029 to address this shortfall and ensure the long-term sustainability of the utility.
On February 24, 2024, the Colton City Council held a special meeting to review an electric rate study and discuss potential rate adjustments. The proposed changes, if approved, would begin in October 2025 and continue through 2029.
Background and Causes
The current financial strain on Colton’s electric utility can be attributed to several factors:
Prolonged Rate Freeze: The last base rate increase occurred in 2009, with subsequent decreases in 2011 and 2013. Measure D implemented a rate freeze from 2016 to 2021, contributing to the current deficit.
Rising Power Costs: In a single year, power costs increased by $17 million, further straining the city’s resources.
Aging Infrastructure: The city faces additional costs related to aging infrastructure, wildfire hardening, system expansion, and state-mandated electrification requirements.
Proposed Rate Adjustments
The electric rate study recommends the following adjustments:
• 2025: No rate increase, utilizing reserves to cover costs
• 2026: 3% increase
• 2027: 2% increase
• 2028: 2% increase
• 2029: 1% increase
These incremental adjustments aim to balance the need for additional revenue with the impact on residents and businesses.
Importance for Colton Residents
The proposed rate hikes are crucial for several reasons:
Utility Sustainability: Ensuring the financial health of the electric utility is vital for maintaining reliable service and preventing potential brownouts or blackouts.
Infrastructure Improvements: The additional revenue will help fund necessary upgrades to aging infrastructure and meet state-mandated requirements.
Long-term Stability: Gradual rate adjustments can help prevent more drastic increases in the future and maintain the utility’s financial stability.
Quality of Life: Mayor Frank Navarro emphasized that providing sustainable utilities is essential for maintaining the quality of life in Colton.
The Utility Commission’s next scheduled meeting is in April 2025, but officials are considering adding the study rate to the March agenda. Additionally, a joint workshop between the City Council and the Utility Commission may be held to further discuss the matter.
As a Colton resident, it’s important to stay informed about these potential changes and participate in public discussions. The city’s decision on rate adjustments will have a direct impact on household budgets and the overall reliability of electric services in the coming years.
Thomas Yarnell / Local Writer (Times Media Service)
tyarnell@timesmediaservice.com
