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Edmond Electric forecasts flat base rates, flags wholesale power and tariffs as risks
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Summary
Edmond Electric staff presented a FY26 budget showing roughly $116 million in expected revenues, identified wholesale power (driven by natural gas prices) and material tariffs as primary cost risks, and proposed targeted staffing and capital work including substations and feeder upgrades funded in part by bond proceeds.
Mr. Fisher, representing Edmond Electric staff, presented the electric utility budget and capital program for fiscal year 2025–26, reporting expected revenues of about $116 million and highlighting wholesale power purchases as the largest cost component.
The utility expects to use approximately $8.2 million in bond proceeds for capital projects while beginning debt service on a recent $22 million issuance. Staff said they do not anticipate changing base retail rates in the next five years but continue to monitor the fuel-cost adjustment monthly and will recommend changes to the finance director as needed.
Edmond Electric staff told the council that wholesale power is roughly 52% of the utility’s costs and that natural gas price volatility therefore drives the largest uncertainty in future budgets. “Our big one is always wholesale power,” Mr. Fisher said. The presentation also raised concerns about tariffs on steel and aluminum and long lead times for key materials; staff reported pad‑mount transformer lead times of about two years and said they are ordering early.
Capital priorities described included feeder and substation reinforcements, an additional substation adjacent to Coffee Creek subdivision, and downtown backbone feeders to support infill development. Staff noted planned investments in smart metering (AMI) and SCADA systems and an intention to hire additional engineering and technician positions over the next decade to use operational data to reduce wholesale purchase costs.
On personnel and operations, staff proposed a reclassification of a substation lineman, a new substation technician and a new distribution-design technician; the personnel package is about $164,000 in reclassifications and new positions. The utility’s first debt service payment on the recent bonds will be roughly $1.6 million in FY26, staff said.
Council members asked staff to track tariff developments closely and return if external changes require mid-year budget adjustments. There were no formal votes taken at the session.
