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Napoleon City Council approves higher power‑supply adjustment as regional capacity costs climb
Summary
Council approved the three‑month power supply cost adjustment factor (0.01603) after staff said rising PJM capacity auction prices are driving higher electric costs; staff estimated the trend could raise an average customer—ill by roughly $300 a year if sustained, a hypothetical projection council noted.
Napoleon City Council on Aug. 25 approved the city—s three‑month rolling power supply cost adjustment factor for August 2025, a 0.01603 factor staff said reflects higher regional capacity costs.
City staff member Kevin told the council that much of the increase traces to higher prices in PJM—s capacity auctions, which purchase power across 13 states and the District of Columbia. "Their capacity auctions used to end in about, say, of $30 per megawatt as a cost... How the capacity auctions have been running, it's been more like $300 a megawatt," Kevin said, adding, "it's gonna affect us, and it's gonna affect our residents or our electric users. Rates are gonna go up, and it's nothing that we can do on our end."
Council member Jordan asked how that would translate to individual customers. Kevin gave a hypothetical example: comparing a prior capacity charge of about 1.143 to the current 6.5689 (as discussed in the meeting), he estimated that, if the higher charges held, an average customer among the city's roughly 6,000 electric accounts could see about a $300 increase annually. He emphasized the projection was hypothetical: "So would you see it very little on a month to month basis? Because it would be under $30. But, again, this is not something that's out of our control. Yeah. And those are all hypothetical."
Council moved and approved the measure by roll call (Doctor Nate: yes; Ross: yes; Ken: yes; Bobby: yes; Jordan: yes; Tom: yes). The factor approved will be applied to August billing as the city—s standard power supply cost adjustment process requires.
The staff presentation identified longer‑term drivers including retirement of lower‑cost generation (for example coal) that can raise short‑term purchase costs, and noted some states and federal actors are examining caps or other remedies for capacity auction spikes. The council did not adopt any additional local mitigation or study directive at the meeting.
