News Summary
The Oxford Board of Aldermen has reviewed a proposed $26.8 million budget for Oxford Utilities’ Electric Division. The budget outlines total expenses and projected revenues, highlighting challenges ahead due to inflation and rising costs. Despite facing pressures, Oxford Utilities has been recognized for its reliability and service quality, making plans for future adjustments to continue supporting the community.
Oxford Utilities Proposes $26.8 Million Budget for Fiscal Year 2026 with Challenges Ahead
Oxford, Mississippi – The Oxford Board of Aldermen has reviewed the proposed Fiscal Year 2026 budget for Oxford Utilities’ Electric Division, which highlights total expenses of $26,821,803 and projected revenues of $26,821,925. General Manager Rob Neely presented the budget during a public meeting, indicating financial challenges on the horizon as the utility navigates inflation, rising costs, and system reliability demands.
The budgetary plan is distinctive to Oxford Utilities, operating on a fiscal year that runs from July 1 to June 30, unlike other city departments that function from October 1 to September 30. This timing is essential for aligning operational and financial strategies within the utility sector.
The most significant financial burden in the proposed budget is attributed to purchased power, which comprises approximately 77% of total expenses. This expenditure is influenced by various factors, including inflation affecting essential materials, supplies, and employee benefits. As a result, the proposed operating expenses are expected to rise by 5.4%, challenging the utility’s cost management.
Projected revenue margins indicate a slight decrease of 0.5%, which could hinder available funds for capital improvement projects in the coming fiscal year. Despite economic pressures, Oxford Utilities has maintained a record of operational consistency and quality customer service, recently earning the American Public Power Association’s Certificate of Excellence in Reliability for the second consecutive year. The utility stands out as the only public utility in Mississippi to achieve this recognition, ranking in the top quartile for system reliability across the nation.
In early 2025, Oxford Utilities faced additional challenges stemming from extreme cold weather that elevated demand on the Tennessee Valley Authority’s (TVA) power grid, reaching record delivery levels. Future hurdles include deteriorating energy sources like older coal-fired generation units and the increasing demand for electricity. Heightened supply chain disruptions have also forced long lead times and price increases for essential equipment, like transformers, complicating maintenance and expansion efforts.
The recent changes in customer communication also reflect Oxford Utilities’ ongoing dedication to modernization. The new text notification system has replaced physical door tags for disconnection notices, optimizing communication processes and eliminating a $25 tag fee, thereby enhancing service efficiency for customers.
In October 2025, Oxford Utilities faced a 5.25% wholesale rate increase from TVA, which followed a 4.5% increase a year prior. Despite these rising expenses, the utility has successfully held residential electric rates steady for over 16 years. As a result, it currently ranks as the fourth lowest in retail rates among 28 TVA municipal and cooperative utilities.
During discussions about the budget, General Manager Neely acknowledged that while a small increase in rates may be necessary in the future, he favors gradual adjustments over sudden, larger increases to minimize the impact on customers.
As of March 31, 2025, Oxford Utilities served a total of 10,469 electric customers, reflecting a notable 1.4% increase from the previous year, comprising 8,517 residential and 1,647 small commercial customers.
The proposed Fiscal Year 2026 budget will be put to a vote in an upcoming Board of Aldermen meeting, where the community will gain further insight into the financial planning and strategic priorities of Oxford Utilities as it addresses its challenges and aims for sustainable growth.
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Additional Resources
- Oxford Eagle: Oxford Utilities Proposes $26M Budget
- Sun Journal: Oxford Hills School Board Approves $54.4 Million Budget Proposal
- Oxford Eagle: Oxford Utilities Proposes $25.5M Budget
- Sun Journal: Oxford Hills Learns of $1M Cut in State Education Funding
- Wikipedia: Electricity in the United States
Author: STAFF HERE OXFORD WRITER
The OXFORD STAFF WRITER represents the experienced team at HEREOxford.com, your go-to source for actionable local news and information in Oxford, Lafayette County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Oxford Film Festival, Double Decker Arts Festival, and University of Mississippi football games. Our coverage extends to key organizations like the Oxford-Lafayette County Chamber of Commerce and the University of Mississippi, plus leading businesses in education and retail that power the local economy such as Ole Miss Athletics and Square Books. As part of the broader HERE network, we provide comprehensive, credible insights into Mississippi's dynamic landscape.
