The City of Gardner held a Utility Advisory Committee (UAC) meeting on January 2, 2025, focusing on energy procurement strategies and financial implications of current contracts. The meeting provided a detailed analysis of the costs associated with the Grand River Dam Authority (GRDA) compared to alternative energy markets.

The discussion began with an overview of the Southwest Power Pool (SPP) integrated marketplace, explaining how energy is purchased through day-ahead and real-time markets. Participants noted that the day-ahead market allows for lower risk transactions, as prices are established in advance, while real-time markets involve more uncertainty and potential for higher costs.

A significant portion of the meeting was dedicated to comparing historical costs between GRDA and the day-ahead market. For instance, in 2020, the cost of energy from GRDA was $1.6 million, while the day-ahead market would have cost $1.3 million, resulting in a savings of $344,000. The analysis continued through subsequent years, revealing that the day-ahead market generally offered lower prices, with a total difference of approximately $341,666 over a five-year period.

The committee also examined the costs associated with real-time market purchases, which showed even greater savings compared to GRDA. The total costs for energy and capacity over five years indicated that the GRDA contract was significantly more expensive, with a difference of $5.1 million when compared to day-ahead costs.

The discussion concluded with a consensus that while GRDA provides reliable energy, the capacity costs are considerably higher than other alternatives, such as Omaha Public Power District (OPPD), which charges significantly less per kilowatt. The committee emphasized the need to explore options beyond GRDA to reduce costs and improve financial efficiency.

Overall, the meeting highlighted the importance of evaluating energy procurement strategies and the potential for significant savings by considering alternative suppliers and market options. The committee plans to continue discussions on these findings and explore further alternatives in future meetings.