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Cleveland Public Power warns of higher purchase-power and transmission costs; staffing and expansion debated
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Summary
Cleveland Public Power (CPP) officials told council they expect purchase‑power costs to rise in 2025 and described transmission and capacity charges as major drivers. Council members pressed CPP on staffing shortfalls, tree‑trimming and longer‑term expansion plans, including service‑area growth such as to the airport.
Cleveland Public Power officials told council on Feb. 27 that they expect sharp increases in purchase‑power and transmission costs for 2025, and council members pressed the utility on workforce shortages and long‑term growth plans.
CPP Commissioner Eamon Danielson and Department of Public Utilities staff said the budget includes a projected $114,000,000 purchase‑power line for 2025, up from about $104,000,000 budgeted in 2024. Staff said the 2024 year was “a light weather year” that reduced actual power purchases; the 2025 budget reflects both higher market prices for replacement power and an allowance for peak demand. The commission explained purchase power covers the energy CPP must buy in wholesale markets; transmission costs pay to move that power to CPP’s system and capacity charges cover the utility’s obligation to pay for resources that secure peak demand.
"We do not produce power at Cleveland Public Power. We buy power," the commissioner explained. Staff said purchase power, transmission and capacity together drive most of CPP’s cost of service and that one contract that expired Dec. 31, 2024, was replaced at roughly a 20–25% higher market price for replacement power.
Council members asked whether streetlights are owned by CPP. Staff confirmed CPP owns the streetlight assets city‑wide, but some lights are fed through non‑CPP infrastructure; at present the city pays roughly $2,000,000 to third parties for power to those lights and CPP said conversion of those circuits to CPP service would be costly and would require capital investment.
Staff said CPP’s unencumbered cash at the end of 2024 was about $30,000,000 and that best practice reserves for 2026 would be approximately $52,000,000; staff said they are working to rebuild reserves after multi‑year strain. Council members asked about using reserves to fund expansion (for example to the airport) but staff explained debt and rate constraints limit the ability to draw unencumbered cash for large capital acquisitions without rate support.
Workforce concerns were a sustained thread: council members pressed CPP to fill lineworker and helper openings, citing response times during storms and persistent outages in parts of the Northeast side. Staff said CPP’s collective bargaining agreement and incentives are competitive, but attracting linemen nationally remains difficult; the utility is recruiting nationally and relying on apprenticeships and outreach. CPP said it budgets student positions and apprentices (CPP reported about 60–62 student participants across the utility and budgeted ~13 student assistants for 2025).
Council members asked about tree trimming and vegetation management; staff said routine tree‑trimming contracts were budgeted at about $750,000 in 2025 (a cyclical amount intended to support both routine and emergency trimming) and the utility keeps in‑house arborist crews for regular work.
Ending: CPP staff committed to provide more detail on staffing vacancies, apprenticeship recruitment and a plan for converting non‑CPP‑fed streetlights to CPP service; council members asked for follow-up on capital and hiring plans ahead of the budget vote.
