In a recent government meeting, officials discussed the pressing need for the city to secure additional energy capacity in light of potential contract losses from coal plants over the next 10 to 15 years. The anticipated loss of 103 megawatts poses a significant challenge, as recent requests for proposals (RFPs) yielded only 50 megawatts from the market.

City representatives outlined two primary strategies for acquiring additional capacity: entering bilateral contracts with existing generators or increasing ownership in generation facilities. Options include expanding ownership in the Dogwood plant, purchasing into another gas plant, or contracting for capacity similar to existing agreements with ONETA. However, the interconnection process for new builds can take four to six years, necessitating early commitment to avoid capacity shortages.

The discussion also highlighted the financial implications of transitioning to alternative ownership scenarios, which could result in the loss of approximately $5.2 million in annual transmission congestion fees. This revenue loss would likely lead to increased electric costs for consumers, compounding the financial strain on the city’s budget.

Officials noted that while the city’s current rates are higher than those of comparable utilities, projected rate increases could be more manageable than those anticipated for investor-owned utilities (IOUs). The city is considering a gradual rate increase strategy, allowing for smaller, incremental adjustments rather than significant hikes, which could help stabilize costs for residents.

The meeting underscored the urgency of planning for future energy needs and the importance of strategic financial management to mitigate the impact on ratepayers. As the city navigates these challenges, collaboration with other municipal utilities facing similar capacity issues may provide additional avenues for securing necessary resources.