Richardson City Council is poised to take significant action regarding a proposed rate increase from Encore Electric, which could impact residents and the city budget. During the meeting on July 21, 2025, the council discussed Encore's request for an $834 million system-wide rate increase, representing a 13% hike over current revenues. This increase, if approved, would result in an average monthly bill rise of nearly $8 for residential customers and a staggering 51% increase in street lighting rates, potentially costing the city over a quarter of a million dollars.

The council's Director of Finance, Todd Gasfoeff, outlined the annual process for reviewing such requests, emphasizing the importance of collaboration among a steering committee of 170 cities. This collective effort allows for a more robust negotiation process, supported by specialized attorneys and rate consultants.

To address the proposed increase, the council is considering a resolution to suspend the rate hike for 90 days, allowing time for further review and negotiation. This suspension would push the effective date of any potential rate increase to October, providing the city with an opportunity to seek a more favorable outcome.

The council must act by July 28 to suspend the rates, as they have a 35-day window from Encore's filing date of June 26. If the council decides not to take action, the proposed rates could go into effect without further negotiation.

As the council prepares for its next meeting, the implications of this decision are significant for both residents and the city’s financial planning. The outcome will be closely monitored as the steering committee continues its review and negotiations with Encore.