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Fort Pierce Utilities Authority keeps power cost adjustment at $4 after quarterly update
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Summary
Finance manager Anja Tranfarini Sloane told the Fort Pierce Utilities Authority on April 21 that projections show the rate stabilization fund recovering after recent volatility and recommended holding the power cost adjustment (PCA) at $4; no board action was required.
Fort Pierce Utilities Authority members received a quarterly update April 21 on the power cost adjustment and the rate stabilization fund and were told the board does not need to change the PCA at this time.
Anja Tranfarini Sloane, identified in the meeting as the authority's finance manager, presented March projections using internal data and consultant analyses from FMPA and RefTelly. She said the authority's objective is to maintain an average $10,000,000 balance in the rate stabilization fund, with an optimal range between $8,000,000 and $12,000,000. In the March projection the fund balance was approximately $8,725,000. Sloane said the board-approved PCA has been $4 since Feb. 1, 2026, and staff’s plan is to hold it at that level "unless projections for the near term vary significantly from the current outlook."
Sloane summarized hedging activity and FMPA projections, noting that natural-gas prices had declined recently and that currently the authority is largely hedged for portions of the next two years; she described the charts shown during the presentation as indicating the utility is in a "very healthy position." She told the board the base purchased-power rate used in the presentation was $79.52 per thousand kilowatt-hours and that the PCA is the tool used to keep rates within the targeted RSF range.
Board members asked staff to explain the financial impact of a recent winter storm and other operational outages. Staff said higher gas prices and an outage at the Treasure Coast Energy Center during January–March increased purchased-power costs, but that the rate stabilization fund and hedging program helped buffer customers. Sloane said FMPA’s hedging program, the authority’s DART (days-of-cash) targets, and recent ISDA (international swaps and derivatives) arrangements all contribute to greater stability in the PCA.
Several board members asked whether the authority should receive reports more frequently. Sloane said staff could provide monthly updates for a short period if the board preferred; board members responded that monthly updates during this volatile period would be helpful.
The presentation was informational; no motion or vote was required. The board moved on to other business after questions and discussion.
