Chelsea Three-Year Utility Rate Increase Passed

Chelsea City Council approved the previously discussed increase in utility rates for the city of Chelsea recommended at the last Council meeting. 

These increases will be:

1. An average of 3.4% ($2.55/month) for residential rates
2. An average of 0.7% ($2.53/month) for commercial rates
3. An average of 1% ($155.38/month) for industrial rates

The motion passed 6-1, the nay vote coming from Bill Ruddock, who raised concerns about the fixed rate increasing along with the per kilowatt price for Chelsea residents. Other council members disagreed and stated that the costs continue to remain similar to surrounding communities and lower than other privately offered utility rates.

“This, to me, seems like a very modest increase to ensure we’re managing our electric company responsibly,” Councilmember George Merkel said.

Mayor Jane Pacheco agreed with Merkel, emphasizing that the rates will only experience a “conservative” increase.

The rate increase will begin March 1, 2025 and will continue through March 1, 2028.

Further information and the Council’s packet can be found in digital form on the City of Chelsea’s website.