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Commerce council objects to Encore Electric rate proposal; denial to proceed to mediation
Summary
Council voted to deny Encore Electric Delivery Company LLC's proposed revenue increase and rate changes so the city can join mediation as part of the franchise/utility review process.
City Manager Lisonbee explained that as a franchising authority the city may formally object to proposed rate or revenue changes submitted by electric utilities and that a denial typically moves the matter into mediation and regional purchasing cooperative negotiation. He said the city’s aggregated purchasing cooperative helps reduce the requested increases during mediation.
Council moved, seconded and voted to deny Encore Electric Delivery Company LLC’s proposed increase in revenue and proposed rate changes; the resolution passed.
Why it matters: A city objection initiates mediation with the Public Utilities Commission and the aggregated purchasing cooperative, which can reduce the effective increase by negotiating on behalf of member entities.
What’s next: The denial begins the formal process; staff indicated the matter will proceed through mediation channels as provided under applicable franchise and regulatory procedures.
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