Bedford council adopts new electric tariff, unbundles power costs; average bill increases planned

The Town of Bedford council voted to adopt an ordinance revising the municipal electric tariff for fiscal year 2026, a change that will separate purchased-power costs from base energy charges and is expected to raise average customer bills.

Consultant Bart Kreps of Raftelis, who presented the study to the council, said the electric system operates as an enterprise fund and that rising power-supply costs are the principal driver of revenue shortfalls. “If we did nothing, we are seeing about a 17% increase that’s needed in fiscal 2026,” Kreps said during the presentation, explaining that a large portion of the increase is outside the town’s direct control.

The ordinance implements a rate design that fully unbundles the purchase power component so customers see those costs separately and staff can adjust the purchase-power cost adjustment (PCA) on a regular schedule. Town staff and council noted the PCA will continue to be addressed on Nov. 1 and May 1 under the new structure.

Several residents urged caution. Nancy Layton, a Bedford resident, warned the PCA could become a “ratcheting vehicle” that increases bills incrementally over time: “It looks like we’re getting a decrease, but the PCA is insidious because it gets adjusted every six months,” Layton said during public comment. Anne DeLong said she feared the proposals’ impact on seniors on fixed incomes and urged council to seek state or federal help to address larger supply issues.

Council debate focused on timing and alternatives. One proposed amendment would have recovered only 50% of the consultant’s recommended adjustment now and phased the rest later; that amendment failed, with five members voting no and two in favor. The main ordinance then passed on a subsequent roll call vote with five members voting aye.

Town Manager Warner and council members emphasized the town has subsidized power costs in recent years and that reserves have eroded. Warner said shortfalls tied to regional capacity costs have already created monthly under-recoveries that, if not addressed, would rapidly draw down reserves. “We cannot continue subsidizing any part of it,” Mayor Stanley said in deliberations, noting the council’s responsibility to keep the utility financially stable and able to reinvest in infrastructure.

The council’s action does not dispense with future adjustments: staff said the PCA and rate impacts will be reviewed at the scheduled Nov. 1 and May 1 windows and that the council will monitor hardship programs and other mitigation options. The ordinance was adopted; staff and the consultant will post details of the new tariff and provide additional customer-impact materials, including example bills, as they become available.