Mesa Utility Department reports projected supply costs below SRP for first time in years

In a recent Mesa City Council study session, officials discussed the ongoing efforts to provide safe, reliable, and affordable utility services while addressing the challenges of fluctuating energy costs. The meeting highlighted the city's commitment to stabilizing supply costs for both electric and gas utilities, a priority that aims to balance affordability with reliability for residents.

One of the key strategies presented was the implementation of long-term contracts to mitigate price volatility. By staggering contract expirations, the city aims to avoid significant fluctuations in energy prices, which can impact household budgets. Mesa's utility department has made strides in this area, with projections indicating that the city will offer electric supply costs approximately 0.6% lower than those of the Salt River Project (SRP) for the upcoming fiscal year. This marks a significant achievement, especially in a market where many utilities are experiencing rising costs.

The meeting also emphasized the importance of staff development within the utility department. Officials noted that a dedicated workforce is essential for meeting customer needs and maintaining service quality. The city is focusing on succession planning and cross-training to build talent from within, ensuring that employees are well-equipped to handle the technical demands of the utility sector.

Sustainability was another focal point, with discussions surrounding the expansion of renewable energy resources. Mesa is actively pursuing solar projects, including a new initiative that will add 2.8 megawatts of solar capacity to the city’s electric service area. This effort aligns with broader goals to enhance the sustainability of utility services while providing affordable energy options.

Safety metrics were also highlighted, with the utility department reporting an impressive 2,443 days without a lost-time accident. This statistic underscores the commitment to safety among employees, which is crucial for maintaining operational reliability.

In terms of financial management, the utility department anticipates maintaining operational costs similar to the previous fiscal year, despite some increases in specific areas such as utility locating and fleet maintenance. The city has successfully targeted budget reductions and identified new revenue sources, including contracts with gas developers, to offset costs.

Overall, the discussions during the Mesa City Council study session reflect a proactive approach to utility management, focusing on cost stabilization, staff development, sustainability, and safety. As the city moves forward, these initiatives are expected to enhance service delivery and support the community's growing energy needs.