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Gardner council authorizes negotiations to buy 7 MW of firm power from GRDA
Summary
The council authorized the utilities director to begin negotiations with the Grand River Dam Authority and Kansas Municipal Energy Agency to purchase an additional 7 megawatts of firm electric capacity and energy, aiming to reduce exposure to volatile market prices; staff discussed 30‑year firm contract terms and risk mitigation.
The Gardner City Council authorized the utilities director to begin negotiations with the Grand River Dam Authority (GRDA) and the Kansas Municipal Energy Agency to purchase an additional 7 megawatts of firm electric capacity and energy for the city’s resource portfolio.
Staff explained that Gardner currently relies heavily on market purchases for a large share of its power needs and that securing 7 MW of firm capacity would move the city toward a more stable, fixed‑price supply. The utilities presenter described the proposed arrangement as a long‑term, firm contract (discussed in the meeting as roughly a 30‑year commitment) that would reduce exposure to volatile market spikes; staff said securing firm capacity could help the city’s forecasted supply balance through about 2030.
During questions council members asked whether the contract would obligate the city to buy the 7 MW year‑round (staff said yes), how often the city must return to the market for additional purchases, and how excess capacity could be sold back to the market. The utilities presenter said the firm resource would supply the city when market prices are high and could be sold when the city has excess, improving overall portfolio stability.
Councilman Baldwin moved and Councilmember McNear seconded the motion to authorize the utilities director to begin negotiations; the motion passed without recorded opposition at the meeting.
