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Council advances electric, gas, sewer and water rate ordinances; electric set for two-year 9.5% increase
Summary
Council approved first readings on several utilities ordinances: a 9.5% electric rate increase for each of 2026–27 (first reading passed 7–0), no increase for natural gas, and proposed sewer (8%) and water (6.5%) increases; council will revisit rates in the next budget cycle.
The Fremont City Council advanced multiple utility-rate ordinances on first reading at its June 30 meeting.
On electricity, staff recommended a 9.5% rate increase for each of the next two years, driven by inflation and the need for major generation and transmission investments. "The recommendation is on electric, 9.5 for 2 years and 5% thereafter," Jeff Shanahan, utilities general manager, told the council. Council approved first reading 7–0; staff said rates will be reevaluated during the next budget process.
Natural gas rates were held steady after a rate study showed no increase was necessary for 2026–27 because of the passthrough structure and fixed transmission cost approach; council approved first reading of the ordinance 7–0.
Sewer rates are proposed to rise about 8% in both 2026 and 2027 to support capital projects such as manhole and pipe rehabilitation; the council approved first reading 7–0. Water rates were recommended to increase 6.5% for each of the two years to support capital improvements including a proposed horizontal well; first reading passed 7–0.
Council members acknowledged the difficulty of increasing essential service rates but cited infrastructure aging and unit outages (including Unit 8 at the power plant) as drivers for the proposals. Staff emphasized the need to balance reliability, borrowing, and rate impacts and will return with updated analyses as capital scopes and procurement plans evolve.
