Council approved 15% rate hike coming into 2026
A new cost could be coming to customers of Lansdale’s electric department.
Council members heard a preview of a possible hike coming to town from an outside supplier.
“We purchase a substantial amount of power from the NY Power Authority, which is hydroelectric power that comes from dams in upstate New York,” said electric committee Chairman Andrew Carroll.
“We have not seen a price increase from them in over 12 years, and we will be seeing a price increase — along with all of their other customers,” he said.
Last December council adopted a 2026 budget with tax, sewer, and electric rate increases, saying the hikes were necessary to combat inflation and tackle a list of infrastructure projects around the town. At that time, staff and council said the 15 percent electric rate hike would help offset higher electric costs seen nationwide due to aging grids, fluctuating natural gas prices, and increased demand due to data centers, which have all led to a sharp increase in electric costs.
Since then, Carroll told the council in their April workshop meeting, staff have learned of another increase being passed on by the New York-based electrical supplier to customers, and are working to calculate what that will mean locally.
“Andy (Krauss, electric superintendent) and the engineer are still working the numbers, to give us an idea of: what is the percentage increase, and what are we expecting to actualize the cost,” Carroll said.
“From April 1, it goes into effect today, so carrying us through the rest of the year: how is this going to affect our overall budget numbers?”
In the adopted 2026 budget, residential electric revenues are projected to total just over $13 million, up from $11.3 million in 2025, with a $5 million annual transfer from electric revenues to the general fund increased to $6 million for 2026.
“We were trying to be cautious in our budgeting this year, for the cost of electricity, because we didn’t know where exactly we would land. There may or may not be a little bit of a cushion there. So there will be an update,” Carroll said.
So far for 2026, revenues on electricity sold to local customers are up over the prior year, and so are expenditures, but by a lower percentage.
“Luckily, revenues are outpacing expenses, and that’s due to the rate increase. We’re keeping an eye on that,” he said.
Winter wind storms in mid-March did give the department a trial run of a new contracted call center, meant to better field and respond to calls for downed wires and utility poles, and Carroll said that system is “already proving a valuable asset” in helping free up staff time.
And staff have also begun talks with council on some sort of annual recognition for electric department line workers, possibly at council’s April 15 business meeting to coincide with celebrations of municipal power month.
“This will be similar to how the police department recognizes their staff — I’m looking forward to celebrating them,” he said.
For more information on the Lansdale Electric department, follow Lansdale Electric on Facebook.
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