Commission authorizes manager to seek five-year electric supply deal if consultant finds competitive rates

The Great Falls City Commission on Sept. 2 authorized the city manager to execute a five-year 'blend and extend' electric supply agreement with Guzman Energy if the city's energy consultant recommends a competitive rate and a formal offer is received.

City Manager Greg Doiland described the approach as a way to achieve predictability and potential savings compared with the default supplier, while acknowledging timing sensitivity in a volatile market. "What our energy consultant is trying to help us do is achieve energy savings...it provides some predictability, rate stability, and potential savings over the default supplier," Doiland said, recommending a five-year term if the market terms meet the city's parameters.

Commissioner McKinney asked whether there was any downside to locking into a long-term rate if market prices later fell. Doiland answered that the primary variable would be transmission charges set by Northwestern Energy and that the city would not be locked into higher energy supply rates beyond the chosen transaction. Commissioners discussed whether additional authorization should be returned to the commission to allow staff to move quickly when favorable market windows appear.

Commissioner Traum moved the authorization, the motion was seconded and approved by voice vote; the manager will proceed only if the consultant's proposal meets the competitive-rate threshold previously discussed.

Next steps: city staff and the energy consultant will evaluate proposals and, if the parameters are met, the city manager is authorized to execute the supply agreements to secure a five-year term.