Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities Rates topic
No spam. Unsubscribe anytime.
Council approves higher power‑supply adjustment for May as capacity costs rise
Summary
Council approved the May 2026 power-supply cost adjustment factor (three‑month average 0.02609); finance staff said regional capacity-auction costs have driven the capacity portion of the city’s supply bill from about 3.1% to roughly 20% year-over-year.
Napoleon City Council voted to approve the power‑supply cost adjustment (PSCA) for May 2026, adopting the three‑month average factor of 0.02609 (with JV2 shown as 0.038610 on the agenda).
Kevin of the finance department explained the increase is tied to higher capacity-auction costs in the regional market. "As long as these capacities auctions continue to increase the way they do, which is mainly driven by the energy demand of AI and data centers, then we will see where this power supply cost adjustment factor will be up in that range," Kevin said. He told council the capacity portion of the city’s supply bill had been only about 3.1% a year ago and is now roughly 20% of the bill.
Council members asked clarifying questions about the percentage impact. Kevin estimated that, for a typical bill of about $1 million to $1.2 million, the changed capacity portion could add roughly six figures to the city’s power costs (as an order‑of‑magnitude example), and offered to provide more detailed information outside the meeting.
The council moved and seconded the motion and approved the PSCA by roll call: Tom — yes; Meredith — yes; Victor — yes; Jordan — yes; Brittney — yes; Dr. Davis — yes.
Council members and staff framed the vote as an administrative approval of the formula and the month’s calculated factor, not as a change in rate-setting policy. Staff noted the formula itself remains unchanged; the increase reflects market movements in capacity auction pricing.
