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Council advances multi-utility rate proposals; electric set for 9.5% increases
Summary
Council approved first readings for proposed rate changes across utilities: electric (9.5% for two years), sewer (8% for two years), water (6.5% for two years); natural gas required no increase but added tariff language for interruptible customers.
The Fremont City Council advanced a package of utility rate ordinances that would increase customer rates to fund infrastructure and maintain service reliability.
Utility Manager Jeff Shanahan presented a rate study recommending a 9.5% electric rate increase for each of the next two years (then 5% thereafter) to fund generation, substations and transmission projects. Shanahan said the city’s newest generation unit dates to 1978 and recent outages—most notably Unit 8—underscore the need to invest in generation and transmission. Council approved the first reading of Ordinance 57‑43 by a 7–0 vote.
On natural gas, staff said the study did not recommend a rate increase for 2026–27 because gas costs are mostly passed through; the ordinance (57‑44) instead adds interruptible‑rate language to allow the city to curtail large customers when system conditions warrant and to impose penalties for noncompliance. Council held first reading 7–0.
Shanahan also proposed an 8% sewer rate increase for both 2026 and 2027 to cover rising costs and capital work (including manhole and pipe rehabilitation). He said the sewer fund is trending negative and needs rate adjustments. Council held first reading on Ordinance 57‑45 7–0.
For water, staff proposed a 6.5% increase for both years to support capital projects including a potential $15 million horizontal well and to fund lead service line work (partly grant‑funded). Shanahan noted 1 CCF equals 748 gallons and estimated the per‑bill increase would be modest in dollars. Council held first reading on Ordinance 57‑46 7–0.
Council members acknowledged the burden of rate increases but emphasized the need to maintain reliability and plan for aging infrastructure. The electric increase was discussed in the context of the Unit 8 emergency and long lead times and costs for new generation.
