Politics
Long Beach Proposes Utility Rate Changes Affecting Thousands of Households
The city's proposed utility rate stabilization measure would adjust water and power billing formulas that directly shape monthly costs for Long Beach households.
How we reported this
The Long Beach City Council is scheduled to vote in August 2026 on a utility rate stabilization measure that would tie future water and electricity rate increases to inflation indexes rather than fixed annual hikes. The change would affect the roughly 170,000 residential accounts served by the Long Beach Utilities Department.
With municipal elections set for November 2026, several candidates have placed household budget pressures at the center of their platforms. Rising regional energy prices and a 4.2 percent increase in the consumer price index for the Los Angeles area last year have made utility costs a recurring topic at community forums in neighborhoods such as North Long Beach and the East Village.
Impact on Monthly Household Expenses
Under the current structure, rates rise by a preset percentage each January. The proposed measure would instead limit increases to the lower of 3 percent or the regional inflation rate, with an automatic review every two years. Local advocates note this could reduce the cumulative effect on fixed-income residents who receive both Social Security and CalFresh benefits.
Policy analysts say a typical single-family home using 12,000 gallons of water and 500 kilowatt-hours of electricity per month would see smaller cumulative increases over a four-year period than under the existing schedule. Renters in multi-unit buildings would see the change reflected in their utility pass-through charges listed on monthly statements.
Budget Figures and Next Steps
The 2025-2026 city budget document lists $48 million in projected revenue from residential utility rates. Long Beach, with a population of 466,742 according to the latest U.S. Census Bureau estimate, relies on these collections to maintain infrastructure without drawing from the general fund. The legislation states that any shortfall would require council approval to draw from reserves.
The measure now moves to a public hearing on July 21 at City Hall. If approved, the new formula would apply beginning with January 2027 bills, giving the incoming council an early test of its cost-of-living priorities.