Critical
Yahoo
Denton, Texas, plans to implement a 3% electric rate hike, alongside increases of 3% for water, 9% for wastewater, and 5% for drainage services. If approved in September, the changes will take effect in October, raising the average residential utility bill from $267.82 to $276.12 per month. Denton Municipal Electric (DME) attributes the rate hike to a significant revenue drop, with 2025-26 projections falling from $526.6 million to $310.5 million. The city also intends to introduce a credit card processing fee for online payments.
The revenue shortfall stems from lower-than-expected electricity demand from data centers, which were anticipated to be major consumers. Denton officials estimate these facilities could eventually require substantial electricity, but council members have expressed concerns about the financial burden on current ratepayers and the risks of relying on large-scale energy users.
Why it matters: Municipal utilities like DME are grappling with revenue gaps and rising costs, creating opportunities for investor-owned utilities like Oncor to stand out through cost-effective solutions and reliable service. As data centers continue to influence grid demand, Oncor's ability to adapt to these shifts could strengthen its competitive position in Texas.