February 17, 2025

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Chelsea

Public Hearing For Local Utility Rate Increase to be Held in February

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Public Hearing For Local Utility Rate Increase to be Held in February

Utility Financial Solutions (UFS) suggested a utility rate increase at Chelsea City Council’s January 21 meeting.

According to Chris Lund, speaking on behalf of UFS, the company does “electric, financial, customer service and rate studies for utilities across the country.” A presentation outlining the increase in cost was presented at the latest Council meeting.

UFS has proposed a “series of 1.5% rate increases for FY2026 through FY2028.” This was initially recommended last year and continues to be the projected plan for upcoming fiscal years. Increasing rates steadily overtime will help funding, which is currently “vulnerable” if rates are left as is according to Lund.

Fiscal year 2026 will begin in July, and if the plan is approved, rates will increase before the new year.

Finance Director Priya King requested a public hearing on February 18 to discuss raising local utility rates by the suggested 1.5%. A public hearing is required by city ordinance before utility rates can be increased.

City Council passed the motion unanimously.