Details on Proposed Utility Rate Increases & Upcoming Public Meetings

Published on March 26, 2025

Details on Proposed Rate Increases and Upcoming Public Meetings (1).png

To ensure continued safe, reliable, environmentally sustainable, and cost-effective operations, the City is proposing rate increases this year for electric, natural gas, wastewater and water services. Estimated monthly bill change if the proposed rate changes go into effect is $44/month.

The City of Palo Alto Utilities provides electricity, water, wastewater, natural gas, and fiber optic services and Public Works Department provides refuse collection and processing for recycling, compost and garbage, wastewater treatment and stormwater management.

Rates adjustments are proposed to support infrastructure upgrades, system maintenance, regulatory compliance, and to maintain adequate financial reserves. Factors contributing to the need for increases include increased costs for wastewater treatment and facility upgrades at the Regional Water Quality Control Plant (RWQCP), upgrades to the City’s electric grid distribution system, cost of service requirements consistent with Proposition 26 and the State Constitution, and Utility financial reserves are depleted.

Find a summary of all changes and Frequently Asked Questions.

Public meetings coming up to share feedback:

The Finance Committee will review proposed water and wastewater rate increases on April 1. Review meeting materials.
Utility Advisory Commission (UAC) and the Finance Committee will review proposed electricity and gas rate increases on April 1 and April 15, respectively. Review the April 2 UAC meeting materials.