Garden City delays decision on electric-service provider for annexed property, staff to revisit 11 statutory factors

City staff on Oct. 1 asked the governing body to defer a final selection of the retail electric supplier for property annexed earlier this year and to revisit the statutory 11-factor analysis required under KSA 66-1176.

Mike Muirhead, director of public works and utilities, summarized the timeline: the governing body adopted annexation ordinance number 2,975-2024 in February but publication occurred Aug. 15, 2024, because of development-agreement issues. He said Wheatland Electric Cooperative held certified territory for the property but had notified the city via email that it would not request a franchise agreement to serve the property. Muirhead noted the city has already compensated Wheatland Electric for two years of lost revenue invoiced and that three streetlights previously served by Wheatland had been connected to the city's electrical system with permission.

Muirhead cited the state requirement to consider 11 statutory factors when selecting a retail supplier and recommended the governing body further discuss those factors and consider findings of fact at a subsequent meeting. A motion to do so was moved, seconded and passed by voice vote.

The governing body did not select a provider at the Oct. 1 meeting; staff will return with additional findings for a future decision. Muirhead said, pursuant to state statute, if the city is selected to serve the property then 8.5% of gross electrical energy sales from the property will be paid to Wheatland Electric for 10 years as compensation; after 10 years the payment would stop.