Palo Alto utility customers might want to start planning ahead. City staff are backing a multiyear set of gas and electric rate hikes that would kick in on July 1, with additional increases in later fiscal years to shore up utility finances and bankroll major infrastructure upgrades. The proposal is aimed at covering rising supply costs and helping pay for a sweeping grid modernization effort that engineers estimate could cost up to $300 million. The recommendations are headed to the Utilities Advisory Commission this week and, if they move forward, would reach the City Council for a possible final vote in June 2026.
What’s on the table
Under the staff draft, gas customers would see distribution rate changes that work out to roughly 6% increases each…..