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City staff warn of 20–30% electricity rate increase as new citywide supply contract is bid
Summary
Council was briefed that the upcoming citywide electricity supply contract is expected to result in approximately 20–30% higher rates versus the expiring contract; finance staff said bids will be issued promptly and preliminary budgeting has been adjusted.
Council member Boxall raised questions about item 7.12 — the new contract for electricity supply for the city’s facilities — asking how the change would translate into kilowatt‑hour pricing and whether the public should be notified about increased future utility costs.
Finance staff said the last city contract was nearly 10 years old and market movement means the city expects roughly a 20–30% increase in supply rates when it issues new bids. A finance staffer indicated some initial kilowatt‑hour figures are available and that staff have begun budgeting for an increase to smooth the impact; earlier budgeting included a partial contingency to prepare for the contract change.
Council members asked for more precise per‑kilowatt figures and for staff to plan public communications; staff said they can provide detailed rate estimates and noted they have already started adjusting budget assumptions.
No formal contract award was made in the afternoon session; staff said bids would be issued in the near term to seek the best possible rates.
