Brigham City staff outline PPAC removal, rate details and recycling fee increase in mayor's proposed budget

At a Brigham City Council work session, staff detailed proposed changes to the city's utility rates in Mayor Bott's proposed fiscal year 2026 budget, including a proposal to set the power purchase adjustment clause (PPAC) to zero and a recommended increase in the outsourced recycling "blue can" fee to $9.50.

City staff said the PPAC — a pass-through adjustment for wholesale energy costs introduced after a 2022 rate study — had peaked at 4.5 cents per kilowatt-hour when wholesale markets spiked, was at 1.25 cents in the current budget, and is proposed at 0 cents per kilowatt-hour in the mayor's FY2026 proposal. A staff presenter said the PPAC is designed as a two-part mechanism: a look-back to recover undercollections and a look-forward to adjust anticipated future costs. "The PPAC is off," the presenter said, noting the rate stabilization fund balance and an adopted policy that prevents PPAC charges when that fund meets its target.

Why it matters: the PPAC directly changes monthly electric bills when wholesale prices move; the presenter said the city's long-term approach aims to smooth those swings while keeping locally owned utilities competitive with investor-owned providers. As an example, staff compared a 1,000 kWh residential bill and reported Rocky Mountain Power at about $146 and Brigham…