Oxford aldermen approve 4% electric rate increase for utilities customers

Oxford households, landlords and businesses will pay more for power on their next utility bill after the Oxford Board of Aldermen approved a 4% electric rate increase for Oxford Utilities customers. The change works out to 4 cents more on every dollar of electric charges, a small percentage that can still add up quickly when summer cooling demand pushes bills higher.

The increase will touch nearly every corner of Oxford and Lafayette County, from homes near the Square to restaurants, apartment complexes, churches and nonprofits that depend on steady electricity to keep doors open and interiors cool. A business with heavy power use will feel the jump faster than a smaller household account, but the higher charge will land across the board as part of the next billing cycle.

Oxford Utilities has provided electric service to Oxford for more than 100 years, and its customer-service office is at 300 McElroy Drive. The utility’s posted rates were current as of June 2025, giving residents a recent baseline as city leaders continue to adjust pricing around service costs and recovery needs.

The electric rate action comes after a costly winter for the city. Following the January ice storm, Oxford officials said the city incurred about $15 million in storm-related expenses and borrowed $10 million through a private loan to keep contractors paid during recovery. Mayor Robyn Tannehill said that loan costs the city about $40,000 a month in interest, an expense that does not disappear as soon as the lights come back on.

Oxford has also been wrestling with broader utility pricing questions this year. In February, aldermen approved moving forward with a proposed 20% water and sewer rate increase. Oxford Utilities General Manager Rob Neely said the water-rate issue was first raised during budget discussions in August 2025, and he said Oxford would still remain among the lowest water rates in Mississippi even if the increase is adopted.

Taken together, the electric hike looks less like an isolated adjustment than another step in a longer shift. For customers already tracking groceries, gas and rent, the city’s utility bills are becoming one more place where the cost of living in Oxford is moving upward.