Starkville set for higher power prices
Starkville utility director proposes phased 2% electric rate increases
The city's Utility Department director told the Board of Aldermen the city should raise electric rates gradually rather than all at once, marking the first proposed increase since 2016.
At a work session on September 12, 2026, Kemp, director of the city's Utility Department, presented the proposal to the Board of Aldermen. "In lieu of doing a large single increase what we are proposing is to do smaller incremental increases over the next three years which would extend through this board term and doing a 2% for the next three years um for these next three fiscal years," Kemp told the board. The plan calls for three consecutive annual 2% hikes rather than a single larger adjustment.
The utility's own figures show a projected $375,000 deficit even after the increases take effect, while each 2% hike is expected to generate about $650,000 in revenue. A board member later questioned during the meeting whether the proposed pace of increases would be sufficient to address that shortfall. The last comparable rate increase in Starkville came a decade earlier, in 2016.