The Borough has recently received several questions about why Tarentum generally adjusts its electric rates once per year, while surrounding investor-owned utilities, commonly called IOUs, may adjust portions of their rates more frequently.
The surrounding investor owned utilities increased their electric rates in June 2026. Tarentum Borough Electric did not increase its rates this summer, and residents will continue paying the rates established at the beginning of the year.
Tarentum Borough Electric is a community owned municipal utility. Unlike an investor owned utility, the Borough establishes its local retail rates through a public municipal process. Electric revenue supports the purchase of power and capacity, operation and maintenance of the distribution system, infrastructure improvements, and reliable service to the community.
To make electric costs more predictable, Borough Council enacted a five year rate plan. The plan allows the Borough to evaluate anticipated power supply, capacity, operating, and infrastructure costs over several years and make gradual, scheduled adjustments. Rather than changing residents’ rates each time regional market conditions fluctuate, Tarentum generally reviews and adjusts its rates once per calendar year.
This does not mean Tarentum is unaffected by changes in the regional energy market. The Borough must still pay for electricity, transmission, generation capacity, equipment, maintenance, and system improvements. The five year plan helps manage those costs in a measured way while giving residents greater predictability and reducing the likelihood of unexpected rate changes during the year.
The attached Electric Rate Comparison uses recurring charges from actual June 2026 residential bills to compare Tarentum with two surrounding investor-owned utilities following their June rate increases. Each bill is normalized to 1,000 kWh so residents can review the comparison using the same level of consumption.
Actual bills will vary based on usage and other applicable charges. Please review the attached PDF for a detailed explanation of Tarentum’s electric bill and the regional comparison.
