Speaker 4, a staff member, told the Budget Rate Committee that after a 2.5% electric rate increase in August — the first in nearly 11 years — staff does not propose any further electric rate increase for the remainder of fiscal year 2026. "We do not propose an additional rate increase for electric, for the FY26 remainder," Speaker 4 said.

The recommendation rests on higher revenue stemming from the prior increase and staff projections that supplemental offsets will cover near-term costs. Committee members asked about the Municipal Electric Authority (MEAG) and whether MEAG’s budget or tariffs would force a change. Speaker 3 said MEAG’s budget rose "about $18,000,000 from '25 to '26," and Speaker 4 said the MEAG supplemental has offset some costs and staff do not anticipate needing a local rate increase as a result.

Because there was no staff recommendation to raise electric rates, Speaker 6 suggested a committee motion to recommend no change. Speaker 2 moved to forward the proposed electric rates to the full Board of Lights and Water, Speaker 1 seconded, and the committee voted by hand/voice to carry the motion.

The committee’s action forwards staff’s recommendation to the full board; the full board will consider and may adopt or modify the recommendation at a later meeting.