Committee discusses pricing, tier differences and wholesale language in ILA
Members reviewed language on service charges and noted the city's Tier‑1 commodity charge cited in the packet (~$3.18 per 100 cubic feet) differs from KPUD's rates; the draft avoids fixing dollar amounts because rates change annually and proposes a fair pricing approach for reciprocal purchases.
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Staff and the KPUD representative discussed how to reference rates in the ILA without locking in numbers that will change over time. Staff said the draft uses common terminology for tiered rates but omits specific dollar figures because city rates are scheduled to change next year. The committee discussed whether the agreement should reference a 'wholesale' term or use tiered commodity language so each party pays rates consistent with its own established structures.
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