Milton council approves $159,200 amendment for electric rate study and distribution analysis

The Milton City Council on April 7 approved Amendment No. 1 to a contract with Patelco to add an electric rate study and an electrical distribution system analysis, including backup-tie options, for $159,200.

The measure matters because the rate study will be used to set utility rates and to estimate capital costs associated with a future substation; council members and staff said the work will inform how the city recoups investments over years through rates.

Director Madden said the city issued a request for qualifications in November 2024 and received proposals from Elcon and Patelco; staff recommended Patelco because of its relevant experience and capacity. “What you have before you now is for the deliverable of a rate study,” Madden said, adding the contract also includes a recommendation for distribution backup ties.

During public comment, Jackie Strader of Milton asked why the administration contracted below the $25,000 threshold in January and later brought a larger amendment, and whether the work was competitively bid. “Because it was under 25,000, this agreement didn't have to be brought to council,” Strader said. She asked who the other bidders were and why longtime consultant EES (now part of GDS) was not used.

Madden and council members answered that the city ran an RFQ, that Patelco and Elcon submitted proposals, and that prior relationships with other firms had not produced the required deliverables. Madden said the city had terminated earlier work with a different firm after it proved infeasible for the identified substation site and that Patelco was judged able to meet Milton’s needs. He added the rate study portion of the work was roughly in the six-figure range and that the total amendment covers the broader deliverables discussed at the meeting.

Mayor Pro Tem Whitaker moved the amendment and Council Member Whelan seconded. The motion passed (yes: 5, no: 0). The contract amendment authorizes work on both the rate study and the distribution backup assessment and funds the city’s next steps on substation planning.

Council discussion emphasized that rate studies typically guide utility pricing for multiple years and that changes to supply chains and grid demand since the city’s last formal rate study (2014) required updated analysis. Staff said the new study will produce a cost magnitude for substation work to be folded into long-term rate planning.

If implemented, the study will produce recommendations the council can use in future rate-setting and capital planning actions.