Fredonia approves 10 percent electric rate increase

Fredonia officials have announced a 10 percent increase in electric rates begin­ning in January 2026, implementing rate hikes that were origi­nally approved by the Town Council in 2018 but have not been ap­plied since 2021. Ac­cording to the town, the increases were deferred for several years, but are now be­ing put into effect to address rising power costs. The adjustment represents the final two previously ap­proved increases.

Under the updated rate structure, resi­dential customers will pay a base rate of $11.965. Electricity use will be billed at $0.097 per kilowatt-hour for the first 200 kilowatt-hours, $0.088 per kilowatt-hour for the next 500 kilowatt-hours and $0.075 per kilowatt-hour for us­age above 700 kilo­watt-hours. Town of­ficials said the tiered structure is intended to reflect typical house­hold usage while man­aging higher overall supply costs.

For a typical house­hold, the impact of a 10 percent increase would vary depending on electricity usage, home size and heat­ing method. Bills dur­ing higher-use winter months would likely reflect a more notice­able change, while low­er-use months would see a smaller increase. Homes that rely more heavily on electric heating could experi­ence a greater overall effect than those with lower consumption.

Non-demand com­mercial customers will see a base rate of $19.942. Usage will be charged at $0.101 per kilowatt-hour for the first 1,000 kilo­watt-hours, $0.093 per kilowatt-hour for the next 10,000 kilowatt-hours and $0.075 per kilowatt-hour for us­age exceeding 11,000 kilowatt-hours. The town said the commer­cial rates follow the same general structure as residential billing, with higher thresholds reflecting business-scale consumption.

Town officials said the decision to move forward now reflects broader increases in wholesale power costs and the need to keep the electric utility fi­nancially stable. They noted that the in­creases had already been approved years ago and that delaying them further would make it more difficult to absorb rising ex­penses without steeper adjustments in the future.

Officials noted that no other electric fee changes are planned at this time. The town closed its notice by acknowledging the impact of the increase on residents and busi­nesses and apologizing for any inconvenience it may cause.