The City of Gardner's Utility Advisory Committee (UAC) meeting on January 2, 2025, focused on the city's energy capacity and future planning with the Grand River Dam Authority (GRDA). Key discussions revolved around the potential benefits and costs associated with increasing energy reserves to meet future demand.

Committee members discussed the concept of an "extra gas tank," which refers to additional energy capacity that the city could tap into during peak demand periods. This capacity is crucial as the city anticipates growth and increased energy needs over the next decade. The committee debated whether to opt for a 4.5-megawatt or a 9-megawatt capacity with GRDA, weighing the long-term implications of each choice.

Concerns were raised about the financial aspects of the GRDA agreement, particularly regarding the Power Cost Adjustment (PCA). This adjustment could lead to increased costs if fuel prices rise, while the city would not benefit from lower costs if fuel prices decrease. The committee acknowledged the uncertainty of future energy markets and the potential for significant cost differences, with estimates suggesting a possible $8 million difference over five years compared to real-time market rates.

The discussion highlighted the need for careful consideration of energy contracts and the importance of securing a stable energy supply for the city's future. Members expressed a desire for more information on how other municipalities manage similar energy challenges, indicating a cautious approach to the decision-making process.

As the meeting concluded, the committee recognized the importance of further analysis and deliberation before making a final decision on the energy capacity agreement with GRDA. The discussions underscored the city's commitment to ensuring reliable energy access while navigating the complexities of energy pricing and future demand.