Utility budget forecasts $116.8M expenses with focus on power and staffing challenges

Edmond's City Council Workshop on April 14, 2025, revealed key insights into the city's utility budgets and rate study for fiscal year 2026, highlighting a projected increase in retail sales revenue and ongoing infrastructure improvements.

City officials announced an expected $3 million rise in retail sales revenue, attributed to a growing number of households and improved efficiency standards in appliances. This marks a significant shift after years of stagnant revenue despite population growth. The total expenses for the utility budget are projected at $116.8 million, with wholesale power costs comprising 52% of the budget, driven largely by fluctuating natural gas prices.

Personnel costs will see an increase of approximately $164,000, which includes funding for two new positions aimed at enhancing operational efficiency. The council emphasized that there will be no changes to base rates over the next five years, although monthly fuel cost adjustments will continue to be monitored to reflect wholesale power costs.

Significant capital outlay projects are on the horizon, including improvements to substations and the addition of a new substation in the Coffee Creek area. These projects are part of a long-term strategy to enhance reliability and capacity within the city's electrical distribution system. The council is also focused on leveraging data from recent investments in smart metering and supervisory control systems to optimize energy distribution and potentially reduce wholesale power costs by 2%, translating to annual savings of up to $1.5 million for ratepayers.

Challenges remain, particularly in recruiting and retaining engineering staff, which is crucial for the successful implementation of these initiatives. The council is closely monitoring external factors such as tariffs on materials that could impact future costs.

As Edmond prepares for these changes, the focus remains on improving service reliability and managing costs effectively, ensuring that the community benefits from these strategic investments in its utility infrastructure.