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Brainerd utility approves selling excess capacity and power-cost adjustment after AEP talks
Summary
Brainerd Public Utilities accepted staff recommendations to sell excess capacity ahead of auction at a secure regional buyer rate and use a power cost adjustment mechanism to implement a new supply rate effective June 1, 2025.
The Brainerd Public Utilities Commission approved staff recommendations to sell excess generation capacity for May 2025–May 2026 and to implement a power cost adjustment to reflect a new supply rate.
Chris Evans, Public Utilities staff, told the commission staff negotiated an average supply rate of $49.35 per megawatt-hour, under the commission’s previously set upper limit of $49.70. Staff recommended selling additional excess capacity before the auction at a secure regional buyer price of $82.19 per megawatt-hour; if the commission delayed, auction prices would be set by market conditions. Staff estimated selling this extra capacity could generate roughly $163,200 in revenue for the utility if sold for May 2025–May 2026.
Commissioners voted to follow the staff recommendation: sell the excess capacity at the secured rate and implement a power cost adjustment mechanism to pass the new supply cost into customer billing effective June 1, 2025, when the new contract rate takes effect. The motion carried by voice vote.
Staff said the change under the contract’s seventeenth amendment will increase power procurement costs and that the commission must choose whether to implement the increase by a power-cost-adjustment or by direct rate changes. The record shows staff recommended the power-cost-adjustment approach and pointed to the availability of a regional buyer willing to take capacity at the secured rate if executed promptly.
No roll-call vote was recorded in the transcript; commissioners approved the staff recommendation by voice vote.
