Board adopts one‑year electric rate adjustment; orders working group and consultant to study utility options

The New Bern Board of Aldermen on March 10 adopted an ordinance to amend the city’s electric rate schedule effective April 1, 2026, and directed staff to convene a working group to examine the utility’s long‑term economic options.

Charlie Bouchard, director of the city electric utility, presented a rate study that recommended a one‑year, overall average 2% adjustment to retail rates to cover forecasted wholesale cost increases, support a five‑year capital plan (including substation upgrades) and maintain debt‑coverage and cash‑balance targets. Under the design presented, the residential class would receive a 0.9% increase; other rate classes would vary to reflect cost‑to‑serve differences.

Bouchard summarized supply pressures and one‑time riders and said the recommended adjustment would collect roughly $1.3 million and help fund replacement of aging equipment: “That 2% increase… is to maintain healthy operating cash and pay the debt service on the first year of the five‑year capital plan,” he said.

Residents filled the public hearing and voiced sharp concern about recent high bills. Laurel Russo, a long‑time resident on a fixed income, told aldermen her household used less electricity than in prior years but saw dramatic bill increases that made paying basic expenses difficult. Multiple speakers — senior citizens, veterans and renters — urged the board to delay any increase, expand outreach about assistance programs, and improve meter‑testing and billing communications. One resident described being quoted a $90 meter‑test fee; staff clarified the city provides a free energy audit and that formal meter testing is a discrete (rare) process that may incur a charge if requested by the customer, and that meters would be replaced and customers reimbursed if a meter is shown to be faulty.

Board members emphasized the consequences of deferring capital investment on a system with 61% depreciation and aging transformers. Several members urged efforts to protect low‑income customers; staff cited existing local assistance options and partnerships (Catholic Charities, Salvation Army, Coastal Community Action, county DSS, and a Roundup donation program that has received a $10,000 board contribution).

After debate, the board adopted the one‑year ordinance with a roll‑call vote. Recorded votes showed five in favor and two opposed (Alderman Astor and Mayor Odom). Immediately after the rate action, the board directed staff to form a small working group (two to three aldermen) to work with the utility director and to hire a consultant to evaluate the electric utility’s economic viability, options for partnerships or exit from the current wholesale contract (N Kempa), and enterprise‑fund capital planning. Aldermen volunteered for the working group; staff will return with scope and a proposed consultant selection timeline.

What happens next: The rate adjustment takes effect April 1, 2026; staff will implement outreach on assistance programs, review communication about meter testing, and begin scoping the consultant engagement and working‑group schedule.

Why it matters: The decision moves short‑term revenue in place to shore up aging infrastructure and to manage near‑term wholesale cost pressures while launching a deeper review of whether the city’s public power model and wholesale arrangements remain the best long‑term fit for New Bern residents.